Can my partner's money be taken if I file bankruptcy alone?

Full question:

IF YOU ARE MARRIED AND FILE SINGLE BANKRUPTCY, CAN YOUR PARTNER'S MONEY BE TAKEN FOR BILLS THAT THEY ARE NOT NAMED ON? HOW MUCH MONEY CAN THEY HAVE? WOULD FILING CHAPTER 13 KEEP THEM FROM HAVING ANYTHING TAKEN FROM THEM?

  • Category: Bankruptcy
  • Date:
  • State: South Dakota

Answer:

Generally, a spouse is not responsible for the other spouse's individual debts, provided they are not a co-signer or authorized user on those accounts. However, if you live in a community property state, the non-debtor spouse's assets could still be at risk. In cases like bankruptcy, divorce, or litigation, creditors may pursue jointly held assets, such as bank accounts in both names. If your spouse agrees to pay a joint debt but fails to do so, creditors may hold you liable for that debt. State laws vary regarding debt responsibility based on when the debt was incurred, who incurred it, and the debt's purpose.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

In Chapter 13 bankruptcy, you can typically keep your savings, but it depends on your repayment plan and state exemptions. Most states allow you to exempt a certain amount of savings, which means those funds are protected from creditors. The specific amount varies by state, so it’s essential to check your state’s exemption laws to understand what you can retain.