What Happens To Marrital Debt When One Divorcing Spouse Files Bankruptcy?

Divorce can result from the stress of dealing with marital debt.  Bankruptcy and divorce often go hand-in-hand. 

Often one spouse wants to file bankruptcy and the other spouse dissents.  Thus, the question is what happens with the debt when the husband files divorce by himself? 

Answer: The husband is no longer liable on any of the unsecured debt.  Not his separate or the marriage's joint debt.  Because California is community property state, his separate debt -- incurred while married -- will be owed by the non-filing wife.  It is a rough rule.  Now, she will have to be concerned about handling repayment of all the debt.    

If the couple is in the process of divorce, the family court judge may have some leeway in taking that fact into consideration when awarding other community property and/or spousal support.

Ken Jorgensen, California Attorneywww.fresnobankruptcylawgroup.com
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