Is Joint Bankruptcy Filing For Us?
Couples often ask me if they should file separate bankruptcy petitions. “We have our own debts and don’t think we should file together,“ they say.
California is a community property state
Those debts the couples think are separate usually are not. Unless the debt was incurred prior to the marriage it is a community debt even if it is only in one name. In addition, if there is not enough separate property to pay separate debts the community assets can be reached by creditors.
Filing Jointly
If both spouses need the protection of the bankruptcy court it is usually easier, more efficient and more economical to file jointly. A joint filing will only require one filing fee. Separate filings will require two filings fees, one for each party. All community and separate assets and liabilities are listed whether filing jointly or separately. If the couple files separately, they need to list everything anyway so it may make sense to file one time and list everything together.
Separate Households
If a couple has been separated for a while and set up two distinct households it might be easier to file separately. Sometimes the spouses cannot communicate well and one spouse doesn’t have all the information needed on the other spouse’s income and expenses. In that case it would be better to file an individual bankruptcy.
Nothing in the law requires a couple to file jointly. The decision should depend on the specific circumstances of the couple involved.
More Bankruptcy J’s:
- New York Bankruptcy Lawyer, Jay Fleischman thinks J is for Jay
- Wisconsin Attorney Bret Nason says J is for Jail
- Livonia Michigan Attorney, Peter Behrmann, J is for Joint Bankruptcy
- Hawaii Attorney, Stuart T. Ing says J is for Joint Debts
- Michigan Attorney Christopher McAvoy says J is for Joint Filing
- San Francisco Bankruptcy Attorney, Jeena Cho says J is for Judgment Debtor
- Cleveland Area Lawyer, Bill Balena says J is for Judicial Lien
- Suburban Philadelphia Lawyer Chris Carr says J is for Judgment Lien
- Colorado Springs Attorney Bob Doig says J is for Judgment Liens
- Virginia and Richmond Attorney Mitchell Goldstein says J is for Jurisdiction
- Los Angeles Bankruptcy Attorney Mark Marcus says J is for Justice
- Northern California Lawyer, Cathy Moran says J is for Justify
Image credit: Leo Reynolds