If a person files for personal bankruptcy, can their spouse still own property and assets?
Jan Meriss Alfonso Assistant at Ascent Law LLC Yes, even if you and your spouse filed for personal bankruptcy, your spouse still owns some assets. If your spouse received inheritances, gifts, or a personal injury settlement, these assets remain separate property. Your spouse can rest assured that these will not be used to pay your debts. However, if your spouse expects to receive a windfall, they will have to turn over the nonexempt amount. Exemptions under bankruptcy law Several exemptions may apply to you and your spouse when you file for personal bankruptcy. Federal bankruptcy exemptions apply to certain kinds of assets and dollar amounts, while state exemptions may vary. Typically, an exempt property is something you do not owe or cannot be repossessed. Exempt property may include alimony, child support, business partnership property, and liquor licenses. These assets will appear on Schedule C of your bankruptcy filing. However, you should keep in mind that the trustee and yo...