If one of you has only a little bit of debt in your name, then you ought to consider filing a bankruptcy for only one of you.

It would depend on how much you both owe and if you can afford to pay the debts of the one who doesn't file.

Call to go over the details.

Disclaimer: The response above does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice.

That depends upon your situation, and whether the debt was acquired during the marriage, and how it was acquired. If it was debt acquired before the marriage, or debt that is in one person's name, both individuals may not need to file. If the debt was incurred during the marriage, in both names, a joint filing may be the best course of action. Contact me for a free consultation to discuss your specific issues.

Disclaimer: The response above does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice.

The California State Homestead Exemption was raised effective 1/1/2010, increasing the maximum amount of equity debtors can protect in their homes. This is great news for homeowners who do in fact still have equity in their homes. This means that even homeowners with significant equity can file a chapter 7 discharging all their unsecured debt while keeping their
home.

Prior to January first, a single debtor could protect up to $50,000 of equity in their home, while a married couple could protect up to $75,000. Seniors (over 65), disabled individuals, and those over 55 with a limited income could protect up to $150,000. Under the new law the amounts have increased to:

. $75,000 for a single debtor

. $100,000 per couple, and

. $175,000 for a disabled person or someone 65 or older, or 55 or
older with limited income.

Exemptions are used to protect debtor's assets from liquidation or the necessity of a cash contribution. For example, if a single debtor had $75,000 equity in his or her home but could only exempt $50,000 from liquidation, the bankruptcy trustee could liquidate (sell) the home and take the excess $25,000 to pay creditors.

Alternatively they could require a $25,000 cash contribution for distribution in a chapter 7, or that $25,000 be paid out to unsecured creditors over the course of a chapter 13 plan payment. With the increased exemption, California bankruptcy attorneys are now able to represent debtors who previously may not have been able to protect all of the equity in their homes, and therefore elected not to seek relief through filing bankruptcy.

Disclaimer: The response above does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice.

You should consider filing a joint petition. Generally, that is best.

Disclaimer: The response above does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice.