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Community property debt?

Randy2191
Valued Member

Community property debt?

So right now I am rebuilding my credit to get a home loan to take over my moms loan when she passes away (she has stage 4 cancer) and soon plan to start rebuilding my wife's which is in much worse shape, but I do have a question. 

2-3 years ago she took out a 8000 loan and defaulted on it during Covid. 

We lived in Michigan at the time, we moved early this year to California which is a community property state. 

I was told today that since California is a community property state and the debt was from Michigan. I can be included if she does get sued and assets in my name only affected and my credit hurt. And that even if she files bankruptcy, they can still go after me since I won't have the need to. Is there any truth to this?  Or since it was a out of state debt, does it go by Michigan rules? 

Message 1 of 5
4 REPLIES 4
vntrsc
Frequent Contributor

Re: Community property debt?

I would contact a CA bankruptcy attorney.  Your issue is too serious to rely on advice on the internet.  In fact, I would contact several attorneys in order to confirm the advice of other attorneys. 

Message 2 of 5
tnhomestead
Frequent Contributor

Re: Community property debt?

I would think you will probably want it cleaned up just for the mortgage.  Plus, for 8k they may sue. 

See if they will settle for half? Good luck

Message 3 of 5
Suzette2
Regular Contributor

Re: Community property debt?


@Randy2191 wrote:

So right now I am rebuilding my credit to get a home loan to take over my moms loan when she passes away (she has stage 4 cancer) and soon plan to start rebuilding my wife's which is in much worse shape, but I do have a question. 

2-3 years ago she took out a 8000 loan and defaulted on it during Covid. 

We lived in Michigan at the time, we moved early this year to California which is a community property state. 

I was told today that since California is a community property state and the debt was from Michigan. I can be included if she does get sued and assets in my name only affected and my credit hurt. And that even if she files bankruptcy, they can still go after me since I won't have the need to. Is there any truth to this?  Or since it was a out of state debt, does it go by Michigan rules? 


You should retain attorneys in both states.  

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Message 4 of 5
Randy2191
Valued Member

Re: Community property debt?

Her name won't be on the mortgage, I am just curious if a out of state debt could really affect the other spouse just because of the state we moved to. 

Message 5 of 5
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