His, mine, ours

[worriedwife]

What is the name of your state? TX

Due to the dishonest action of one of our employees, it looks like my husband's electrical business is facing Chapter 7 bankruptcy. My husband and son have signed personal guarantees to some of our vendors. I understand that they will both have to claim bankruptcy, but will that affect things (like vehicles) that are in only my name?What is the name of your state?

 

[azatty]

Hold on there, cowgirl. You're in Texas, which is a community property state. There's this neat little feature in MOST community property states relating to guaranties and sureties: both spouses are required to join in a guaranty or surety of the debt of another (including a corporation). Lack of joinder in the guaranty prevents a creditor from obtaining a judgment against the marital community, and, consequently, enforcing the judgment against community property (which, if you've been married for any period of time, is probably everything including wages). So maybe bankruptcy isn't immediately necessary.

Go talk to a local bankruptcy attorney about the situation. You may have a way out.

As for solely owned assets, that's tricky in a community property state. Even if you acquired title in your name alone, all property acquired during marriage is presumed to be community. Your husband's bankruptcy estate COULD have an interest in the assets titled in your name. You're getting into some complicated questions, so you should seek local counsel.

 

[worriedwife]

Thank you for the reply - it was very enlightening. We've been married 28 years, so that should count! Will seek local counsel.