My question involves bankruptcy in the state : California
Husband buys home before marriage, before relationship with wife. Husband and wife marry two years after home purchase, they both help pay down the principal, and house increases in value due to market appreciation.
Wife files Chapter 7 by herself (married, not filing jointly) to get rid of debts incurred before marriage.
How does wife classify her interest in the aforementioned home? Using "Moore/Marsden" formula? If so, is her interest considered Real Property (Schedule A) or personal property (Schedule B)? If the latter, then which category of personal property?
In this case, wife can safely exempt all assets if limited to her community property interest in house. If forced to declare all equity in house as an asset, then significant portion of equity is exposed to creditors.
Any thoughts, input or advice is appreciated.
Husband buys home before marriage, before relationship with wife. Husband and wife marry two years after home purchase, they both help pay down the principal, and house increases in value due to market appreciation.
Wife files Chapter 7 by herself (married, not filing jointly) to get rid of debts incurred before marriage.
How does wife classify her interest in the aforementioned home? Using "Moore/Marsden" formula? If so, is her interest considered Real Property (Schedule A) or personal property (Schedule B)? If the latter, then which category of personal property?
In this case, wife can safely exempt all assets if limited to her community property interest in house. If forced to declare all equity in house as an asset, then significant portion of equity is exposed to creditors.
Any thoughts, input or advice is appreciated.
Chapter 7: Wife's Interest in House Bought Before Marriage by Husband
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