Residents of Tyler, and other parts of Smith County, probably know that Texas is among the nine community property states in the country. In a community property state, both spouses have equal rights over assets that are acquired during the course of their marriage. The same rule applies when it comes to debts. Therefore, it is important for all Texas residents to remember that in the event of a personal bankruptcy filing, those community property laws play a major role.
According to those laws, when one spouse files for personal bankruptcy in Texas, that filing includes all separate property which that spouse owns, along with one half of all community property that the married couple owns. Similarly, all of that spouse’s debts are a part of the filing, along with half of all the debt that was accumulated as a married couple. In the event that the spouses file jointly, all assets and debts that are jointly or separately owned are included in the bankruptcy filing.
Although the aforementioned rules are straightforward, many bankruptcy filers may still be apprehensive. Usually, these concerns stem from the fact that most filers are not fully aware of all rules and regulations that govern bankruptcy filings in Texas. However, that lack of awareness is understandable because bankruptcy is a complicated area of law and without in-depth knowledge of all of its provisions, the process may seem confusing.
It is in these situations that getting more information can help debtors. At our law firm we understand how the bankruptcy process works thanks to our years of experience in the field. We strive to study every couple’s case in detail and try to offer a tailor-made solution. Please visit our webpage about bankruptcy for married couples if you wish to learn more.