“In California, once creditors receive a judgment, they can collect against either spouse because we’re a community property state,” says John G. Stein, an attorney in Elk Grove, Calif. Creditors can take money (known as a garnishment) from bank accounts.
Is your spouse responsible for other debts in Ohio?
In an equitable division state such as Ohio, debt is left with the spouse who owns it in most circumstances. When a couple signs up for a joint credit card, purchases a home with the mortgage in both of their names or buys an automobile together, they are both responsible for the debt.
What happens when one spouse discharges a joint debt?
When one spouse discharges a joint debt, a creditor can’t later use community property assets to pay the debt. Be aware, however, that this protection ends on divorce or death because the couple no longer exists as a “community.” Chapter 13 automatic stay.
Can a domestic support debt be discharged in bankruptcy?
Domestic Support Obligation is specifically listed in 11USC1328 as a debt that is not dischargeable, but it leaves out the property division. This means that if you file a Chapter 7 bankruptcy, you will not be discharged of any debt incurred in a divorce decree or separation agreement.
Can a debtor discharge a divorce-based attorney’s?
Thus, if the obligation is not a support obligation but arises from a divorce or separation agreement or order relating to property division, the debtor is only required to pay a pro rata share of the funds available in the Chapter 13 plan.
Can a spouse be pursued for their debts?
While these laws typically prevent one spouse from being deprived of their fair share of marital assets during a divorce, they also create the unintended effect of allowing creditors to garnish both spouses’ earnings when collecting on a spouse’s debt.
