Debt and Bankruptcy
Bankruptcy Law

How can a home be protected when it is jointly owned by a married couple and only one spouse files for bankruptcy?

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2015-07-15 20:01:30
2015-07-15 20:01:30

It depends upon how the property is titled and the homestead exemption allowed.

In community property states the home of a married couple will become a part of the bankruptcy if it was acquired during the marriage and if it is not covered by the homestead exemption.

In non CP non TBE states a home is not at risk as long as it is protected by the homestead exemption and only one spouse is the debtor/filer.

In states that allow property to be held as TBE by married couples the home would not be subject to BK action regardless of the homestead exemption amount when only one spouse is the debtor/filer.

FYI, it is advisable for married couples living in community property states to file a bankruptcy jointly even if only one spouse has incurred the debt.

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