Does filing bankruptcy have to be done by both husband and wife or can just one spouse file?
A husband or a wife can file a single bankruptcy petition without their spouse if the situation warrants only one person filing. A typical situation is when either the wife or husband is the only person ;liable for the debt. However, bankruptcy law requires that both spouses income and expenses be disclosed in analyzing a consumers ability to be eligible for Chapter 7 or Chapter 13. Also, if their is joint debt, the person who does not file will still be legally responsible for the debt.
A spouse may file for bankruptcy without the other spouse. However, some things must be considered. First, if the spouses live together, both spouses income must be considered as far as the Chapter 7 Means Test and the Chapter 13 disposable income test.
Second, many spouses are codebtors on accounts. In such cases, both spouses are liable for the debts. If one spouse files for bankruptcy, and receives a discharge, the other spouse will remain liable for the debt.
Lastly, in California (and other community property states), the property of one spouse is owned by the other spouse if the property was acquired during the marriage. Thus, the nonfiling spouse’s bank accounts, real property, and other items are subject to liquidation and the other provisions of the Bankruptcy Code.
If you have any further questions on bankruptcy in San Jose and California, please contact the Henshaw Law Office today at (408) 533-1075.
Related Questions
- Can my former spouse (ex-husband or wife) or I file for bankruptcy (Chapter 7 or 13) in order to avoid having to pay an existing alimony (spousal support) order in Massachusetts?
- Does filing bankruptcy have to be done by both husband and wife or can just one spouse file?
- Under what conditions should both husband and wife file bankruptcy?
