Hello, my name is Marcy. I would like to talk to you about the various ways bankruptcy attorneys help you eliminate debt. My attorney helped me find all of the creditors that I needed to pay back. I was astounded at the number of creditors listed on the bankruptcy. Fortunately, my bankruptcy attorney assured me that my case was completely normal and possible to discharge through the court process. I hope to use this site to reassure others about their debt situation. I will share information about bankruptcy attorney services in an effort to help others tackle this difficult problem.
Currently, there are still nine states in the U.S. that have "marital property" laws. These nine states effectively treat all property, including debt, as the responsibility and ownership of both people in a marriage. Ergo, when you or your spouse files for bankruptcy, it can get very tricky trying to separate out debts and place the filer's debts under the bankruptcy proceedings. Here is how you, your spouse and a bankruptcy attorney (such as one from Morrison & Murff) can sort things out and still get the debt load absolved or resolved.
Your Spouse's Debt Versus Your Debt
The first thing your attorney will ask you and your spouse to do is to sit down with your spouse and make a list of all the debts that were created before the two of you were married. Usually, these debts only have your or your spouse's name attached to them and it is easier to prove to a judge that the debts do not belong to both of you. Whoever is filing for bankruptcy, be it you or your spouse, you can take your share of this list and file it as part of the bankruptcy process.
Next, make a list of debts made inside the marriage dates that only have your name or your spouse's name attached to them. In other words, if you have separate credit cards, personal or auto loans, etc., that are in your name only or your spouse's name only, make a list of these debts and the amounts owed. Even though you both are technically responsible in a community/marital property state, they are looked upon as separate responsibilities because both of your names are not on these bills and cards together. Again, whoever is filing for bankruptcy can file his or her personally-addressed debts to the paperwork for the courts.
Debts That List Both of Your Names
Unfortunately, the only way to eliminate debts on which both you and your spouse are listed as debtors and both of you reside in a community/marital property state, you would have to have a judge make a separate ruling on the "fair share" of these debts in order to include them in the bankruptcy. This does not happen that often, so another other legal recourse you have is to file a joint bankruptcy with your spouse so that these debts may be included in the bankruptcy paperwork and hearing. The last option is not a viable one unless you and your spouse are also filing for a divorce, in which case the judge would split the debts and responsibilities evenly. Then the evenly split debts could be filed as part of the bankruptcy process.