Navigating Bankruptcy in Texas During a Common-Law Marriage

Filing for bankruptcy is a significant decision, and when you’re in a common-law marriage in Texas, the process introduces unique considerations. Understanding how Texas law treats common-law marriages and community property is essential to effectively navigate bankruptcy proceedings.

What Is a Common-Law Marriage in Texas?

In Texas, a common-law marriage, also known as an informal marriage, is recognized when a couple:

• Agrees to be married: Both parties consent to the marriage.
• Cohabits: Lives together in Texas as a married couple.
• Represents to others that they are married: Holds themselves out to the public as a married couple.

It’s important to note that Texas does not require a marriage license or formal ceremony for a common-law marriage to be valid. However, proving the existence of such a marriage can be complex and may require legal assistance. You can refer to the Texas Family Code for more details on common-law marriage requirements.

Community Property and Common-Law Marriage

Texas is a community property state, meaning that most property acquired during the marriage is considered jointly owned by both spouses. This principle applies to both formal and common-law marriages. Consequently, debts incurred during the marriage are typically regarded as community debts, making both spouses liable.

Filing for Bankruptcy: Individual vs. Joint Filing

When contemplating bankruptcy, spouses in a common-law marriage have the option to file individually or jointly. Each choice carries distinct implications:

• Individual Filing: One spouse files for bankruptcy without the other. In Texas, even if only one spouse files, all community property may be included in the bankruptcy estate. This means that jointly owned assets could be used to satisfy the filing spouse’s debts.

• Joint Filing: Both spouses file for bankruptcy together. This approach consolidates all debts and assets into a single bankruptcy case, potentially simplifying the process and offering comprehensive debt relief.

Deciding which route to take depends on the specific financial circumstances and the nature of the debts involved.

How Does Bankruptcy Affect Marital Debts?

In a common-law marriage, debts incurred by either spouse during the marriage are generally considered community debts. Filing for bankruptcy can impact these debts in several ways:

• Discharge of Debts: Bankruptcy may discharge certain debts, releasing the filing spouse from personal liability. However, creditors may still pursue the non-filing spouse for repayment of community debts.
• Protection of Community Property: In a joint bankruptcy filing, community property is protected under the bankruptcy estate, preventing creditors from targeting these assets.

Understanding these nuances is crucial to protecting both spouses’ financial interests during bankruptcy proceedings.

Why Choose Kisch Consumer Law?

Navigating bankruptcy within the context of a common-law marriage in Texas requires specialized legal expertise. Kisch Consumer Law offers:

• Experienced Guidance: With over 20 years of experience, attorney Karen Kisch provides knowledgeable and compassionate legal assistance.
• Personalized Solutions: Tailored strategies that align with your unique financial situation and marital status.
• Comprehensive Services: Assistance with bankruptcy filings, foreclosure defense, debt negotiation, and more.

For more information and to schedule a consultation, visit Kisch Consumer Law.

FAQs

Can I file for bankruptcy without my common-law spouse?
Yes, you can file individually. However, in Texas, community property may still be included in the bankruptcy estate, potentially affecting jointly owned assets.

How do I prove a common-law marriage in Texas?
Proof may include joint tax returns, shared bank accounts, co-signed loans, or affidavits from friends and family attesting to the marriage.

Will bankruptcy discharge all marital debts?
Bankruptcy can discharge many unsecured debts, but some obligations, like certain taxes and student loans, may remain.

What happens to our property if only one spouse files for bankruptcy?
In Texas, all community property could be included in the bankruptcy estate, potentially affecting jointly owned assets.

Is legal representation necessary for filing bankruptcy in a common-law marriage?
While not mandatory, consulting with an experienced attorney is highly recommended to navigate the complexities involved.

How Kisch Consumer Law Can Assist You

At Kisch Consumer Law, we understand the intricacies of bankruptcy law as it pertains to common-law marriages in Texas. Our services include:

• Comprehensive Case Evaluation: Assessing your financial situation to determine the most suitable bankruptcy filing option.
• Guidance Through Legal Processes: Assisting with documentation, court filings, and representation to ensure a smooth procedure.
• Protection of Your Rights: Advocating for your interests to safeguard your assets and financial future.

To explore your options and develop a strategy tailored to your needs, contact Kisch Consumer Law today.

Filing for bankruptcy during a common-law marriage in Texas presents unique challenges, but with informed decisions and expert legal guidance, you can navigate the process effectively. Even in the face of financial difficulties, there’s a path to relief. As the saying goes, “Marriage is a partnership—through thick, thin, and sometimes debt.”

Let Kisch Consumer Law help you and your partner find your way back to financial stability.