Arizona is one of the community property states. This means that whatever the spouses acquire during their marriage, whether an asset or a debt, belongs to both of them (absent other agreements). In other words, after marriage, any debt incurred by either spouse creates an obligation to the creditor of both spouses. Any debt incurred by either spouse binds both of their community and separate property. Often times, people believe if their name is not on the credit card, they do not owe the creditor anything. Unfortunately, in Arizona, a creditor can pursue the innocent party in court and even garnish wages or levy bank accounts.
There are situations where only one spouse files for bankruptcy. In that case, the separate and community debts are being discharged as to the filing spouse only. What this means is that a non-filing spouse is still responsible for any community or separate debts. The risk is huge for the non-filing spouse. Where both spouses file, the discharge in a bankruptcy may discharge both the community and separate obligations of the debtors.
If you or anyone you know would like more information regarding Bankruptcy please contact me for a free consultation at :
The Law Offices of Anca Iacob
7075 W. Bell Road, Suite 15
Glendale, AZ 85308
(623)266-0060
Please also take the time to visit my website at www.iacoblaw.com for more helpful information regarding Bankruptcy.
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