Vancouver, WA asked in Bankruptcy and Divorce for Oregon

Q: I am trying to understand a couple topics related to bankruptcy in Oregon.

1. When one spouse has credit card debt in his name alone, does the Family Expenses Statute apply to routine expenses like groceries and utility bill. More generally, I am wondering when credit card debt can be considered joint debt of both spouses even though it is in the name of one spouse.

2. I understand that in Oregon, a house bought by a married couple is automatically considered "tenancy by the entirety" unless the deed specifies otherwise. If this is the case, can the house be protected in a bankruptcy proceeding when only one spouse files?

3. If a jointly-owned house is transferred to one spouse during a divorce proceeding, will a subsequent bankruptcy proceeding respect that settlement when the other spouse files for bankruptcy?

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1 Lawyer Answer
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: 1. All debt acquired during the marriage is presumptively marital debt regardless of whose name it is in.

2. Yes, to some degree depending on how much total equity is in the house.

3. It will be if it is an arms length transaction between divorcing spouses. It may not be respected if it appears one sided, fraudulent or calculated to defraud creditors.

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