
In law enforcement, BOLO stands for Be On the Look Out. But even outside of law enforcement, BOLO alerts operate. In this case, we as bankruptcy lawyers need to be on the look out for community property. It's easy to think that community property is an issue only for practitioners in the 9 community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. But in truth, the movement of the married and the formerly married in and out of community property jurisdictions can bring commuity property to a bankruptcy court near you even if you don't practice in one. Why community property matters Because of the unique treatment of community property in bankruptcy, spotting community property when the case is to be filed in a non-community state is critical. The characterization of property as community impacts the liquidation analysis, the distribution to creditors, and the scope of the discharge in a single spouse … [Continue reading...]