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?

Related Topics:
1 Lawyer Answer
Timothy Denison
Timothy Denison
  • 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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.