Oftentimes married couples face a dilemma with filing for bankruptcy in California. In particular, what should they do in order to save time and money? They have two possibilities:
– To file a joint (single) bankruptcy petition
– To file for bankruptcy separately
If spouses choose a joint bankruptcy petition, they must have a single set of bankruptcy papers. They should disclose all their property, income, debts and expenses. It should be noted that in a single bankruptcy petition you should include all joint and individual debts. Then, you may wipe out all dischargeable debts without filing two separate petitions.
A joint bankruptcy may pose a problem to your community property because all your common property (owed jointly or separately) is a part of your bankruptcy. So, if the value of debts of your spouse exceeds his or her part in the joint assets, the rest will be taken from your individual property.
The next issue you should consider is the cost of your bankruptcy case. Simply saying, it is cheaper to save money by filling a single petition over two separate bankruptcies. In this case, you will be able to save from the court filing fees and attorney fee.
Additionally, you should take into consideration the effect which bankruptcy will reflect on your credit history. Couples should think twice before agreeing to file a joint bankruptcy petition.
If you and your spouse do not know how to file your bankruptcy petition (jointly or individually), The Margarian Law Firm lawyers highly recommend you to consider the following circumstances in your best interest:
- the total amount of your own property
- A number of joint debts
- California exemption laws
At the end
If you and your spouse do not know how to fill for bankruptcy in California, you can get a FREE initial consultation at The Margarian Law Firm in order to examine your specific circumstances. We will help you to determine which type of bankruptcy you qualify. You may file your request online, by telephone or by mail. 818-553-1000