If one spouse files for bankruptcy, will the other spouse lose any property they own?
Jan Meriss Alfonso Assistant at Ascent Law LLC Will the Other Spouse Lose Any Property If One Spouse Files for Bankruptcy? First of all, if one spouse files for bankruptcy, the other spouse is not liable for his or her debt. Bankruptcy does not wipe out a spouse's property, as long as there are exemptions available for both spouses. Newly married couples typically have little community property and very little joint property. A newly married couple filing for bankruptcy will usually save their home if they both have separate bankruptcy exemptions. Community property states treat property acquired by either spouse during the marriage as equally owned in its entirety by both spouses A community property state is one in which property acquired by either spouse during the marriage is treated as equally owned by both parties. In some states, the community property system may be voluntary. This means that you may not be able to keep the property you acquired before or during the marria...