Personal Bankruptcy Revocable living trusts, chapter 7 bankruptcy complcations

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Dane

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My wife is the settlor/trustee of a revocable living trust with spendthrift option that has been in place for ten years.
I am her husband who is a beneficiary of the trust. I have no assets except for an older car. This spring my wife filed for legal separation during the preliminaries of a moderately severe of mental illness.
My wife avoided the financial credit card tornado and none of my credit cards were issued to her. I am not offering up my bipolar as an excuse.
Very little of the gross debt occurred before our date of separation. The legal separation judgment was in September.

My wife took me to a bankruptcy attorney last week where after listening to the details and checking the creditor statements said the bankruptcy trustee or creditor could not reach the trust assets or garnish her salary.
This made me feel better, but a week after the initial consultation, I am having anxiety over creditors reaching into the trust or my wife's salary.

I guess I need someone else to say the trust and my wife are safe, and why. My wife still loves me but is divorcing me to avoid and more credit troubles.
I know what she means.

Thank you for reading
 
Unfortunately this area is often somewhat ambiguous and when it's not, it tends to drown in red tape.

Follow the advice of the attorney; there's no real way we can really offer any advice given that revocable trust can sometimes be "safe" and sometimes not.
 
There is no way we can say - you need to listen to the attorney who has complete details. You can always get a second opinion from another bankruptcy attorney.
 
Hmm a trust enacted 10 years ago for one spouse by another. Medical issues. Separated debt to run up credit card bills. Why does this sound orchestrated? The bad news, you did it in a community property state. Half of all the assets she has been stockpiling in her name for the years you were married are assets for your creditors. Any assets she has commingled can also be grabbed potentially at 50%.
 
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