We been separated without any paperwork for about a month, my ‘wife’ moved out and live with her adult daughter and her family. We own the property, and she wants to file bankruptcy because she failed miserably managing money we have…So, my question is: if she files bankruptcy, do we have to sell house and pay the debt?
If she files bankruptcy individually, you may be able to retain the marital residence.
Typically, credit card debt is divided in equitable distribution by balancing the total debt with the total assets being distributed to each spouse. But note, if a spouse files bankruptcy, you will not be able to proceed with equitable distribution or dividing the marital property until after the bankruptcy case is finished.
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