Community Property- Remember to list it in your Bankruptcy Schedules
June 26, 2010 Leave a comment
Remember to list your community property in your Bankruptcy. Community property is a little complicated and I’ll blog about it more at a later date. I was at a 341 hearing once where the Debtor forgot to list her husband’s car. Husband and wife bought the car during their marriage so community funds were used to purchase it and community funds were used to maintain it so it’s probably community property. That means that you should list it in the Bankruptcy schedules and exempt it because even if your spouse is not filing, that car belongs in part to the Debtor.
I always list these autos in the schedules if there is room to do so in the exemptions. It’s just good policy I believe and it will avoid questions from the Trustee. The same goes for any other property that the filing spouse may own in part even if the filing spouse believes it belongs to the non-filing spouse. Tomorrow I’ll talk about separate property as it differs from community property.