Community Property And Bankruptcy

I am now not a legal professional; I am a judgment and debt referral professional (Judgment and Collection Agency Broker). Based on my revel in California, this article is my opinion, and legal guidelines vary in every nation. If you ever want a prison recommendation or a strategy to apply, please touch an attorney.

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What if one has had a judgment debtor, and their non-debtor partner filed for Chapter 7 no-asset Federal bankruptcy courtroom safety? What if simplest the non-debtor spouse filed for financial disaster, and the debtor-spouse did now not?

How can one better judge the judgment debtor partner whilst their non-debtor spouse filed for bankruptcy safety or has already discharged their debts in bankruptcy? How does this effect one trying to recover a judgment from the non-bankrupt debtor partner in a network property state?


After the non-debtor spouse has commenced a financial disaster or has already discharged their debts, moves to fulfill the debtor spouse’s debt with community property are stayed (forbidden and illegal).

The debtor spouse’s sole and separate property typically challenges to levies to meet a judgment. However, one should be extra cautious not to violate a financial ruin court’s order and do their homework. With a small judgment, or while the debtor is and could continue to be negative, it might be first-rate to forestall analyzing here and write off the judgment.

Bankruptcy live violations can result in dire penalties, so one needs to be careful to have sheriffs or marshals levy the simplest non-stayed and/or non-dischargeable belongings. To be extra secure, one needs to make double-positive which property is truly and legally available first. One quality way to look before you soar is with a debtor examination (frequently with a record production request). This is carried out with the aid of scheduling and serving an OEX (Order to appear for EXamination) on the judgment debtor.

Roberto Brock
the authorRoberto Brock
Snowboarder, traveler, DJ, Swiss design-head and HTML & CSS lover. Doing at the nexus of art and purpose to develop visual solutions that inform and persuade. I'm a designer and this is my work. Introvert. Coffee evangelist. Web buff. Extreme twitter advocate. Avid reader. Troublemaker.