Question: Someone in the family is considering filing personal bankruptcy. This family member is married and the house/property and car are in his wife’s name. After he files bankruptcy can the creditors still come and take things from the house even though it is signed under the wife’s name?
Also, what if this husband declares non-residence before or after filing personal bankruptcy? What will happen to his assets if they are in the house that is signed under the wife’s name, can they creditors still touch them?
Answer: Only the bankrupt’s assets are involved in the bankrupt’s bankruptcy. A spouse’s assets can’t be seized for the other spouse’s debts. The only exceptions would be if the non-bankrupt spouse has co-signed for the bankrupt spouse, or if the bankrupt had transferred assets to his spouse prior to filing bankruptcy. Your trustee can explain in more detail.
Tags: spouse
