Last updated 1 day 9 hours ago
Though you and your spouse are not required to file bankruptcy jointly, there are situations in which it makes the most sense for your finances. To find out more about what filing jointly means for you and your spouse, read on.
Debts
Before filing for bankruptcy, you and your spouse should examine your debts and determine whether most of your debt is owed by one spouse or jointly. In a community property state like California, debts acquired during marriage are automatically assumed to be marital property, divided evenly between spouses, but one or both of you may have significant debt from before your marriage that counts as separate property. If you file bankruptcy jointly, all of these debts will be subject to bankruptcy proceedings and will be discharged as appropriate. If only one of you files bankruptcy, the other will still be responsible for his or her share of community debts and separate debts.
Property
Property distribution works much the same way as debt distribution: unless acquired before marriage and kept separate, everything a married couple owns is community property. When filing Chapter 7 bankruptcy, you can exempt a certain amount of property from liquidation. If you and your spouse file together, you can each claim these exemptions, doubling the property you can keep. However, if one spouse owns a lot of property, such as valuable real estate, you won’t have enough exemptions to cover it, and it may be liquidated. Property ownership must be carefully considered before filing for bankruptcy.
Filing Fees
If you and your spouse file bankruptcy jointly rather than separately, you will save money on filing fees. You’ll only have to pay court fees once, not twice, which may ease your financial situation just a bit.
Filing bankruptcy jointly is complex and involves the consideration of many factors. Don’t try to handle the process yourself—call (858) 240-2480 to discuss bankruptcy with an experienced attorney at Golden State Law Group. Our lawyers can help you and your spouse make the right decision for your finances.
Last updated 3 days ago
Though we all like to think we can take care of our own debts, life has a way of making matters complicated. If your debts ever get beyond your control, you may need to file bankruptcy. Before you do, you should strongly consider hiring a skilled bankruptcy attorney. For more information, visit these additional resources:
- If you miss a few payments on a vehicle, it may be repossessed. Learn about vehicle repossession from the Federal Trade Commission.
- How can you rebuild credit after filing for bankruptcy? BankRate.com has the answer.
- There are several ways you can avoid foreclosure. Learn a few of them at this page from the U.S. Department of Housing and Urban Development.
- Life after bankruptcy isn’t as bad as you might think. Learn more from Investopedia.com.
- Do you want to learn more about Chapter 13 bankruptcy? Visit this page from USCourts.gov.
If you'd like to speak with an experienced bankruptcy attorney, contact Golden State Law Group at (858) 240-2480. We specialize in bankruptcy, foreclosure, tax and debt negotiation, and debt relief. Call us today to get started. We offer a free initial consultation, so you have nothing to lose!
Last updated 8 days ago
Though filing for Chapter 7 bankruptcy is a perfectly legal, honest way to get out of debt, many people shy away from it. Some prefer Chapter 13 bankruptcy, which allows debtors to pay back some or all of their debts.
In this short video from LawInfo.com, we learn all about Chapter 13 bankruptcy. Chapter 13 bankruptcy is also called “wage earner” bankruptcy, because it’s designed for people with enough income to pay back some or all of their debt. Small businesses and couples can also file for Chapter 13, as long as they dedicate a portion of their revenue to repay debts over a period of 3-5 years.
If you’d like to know more about Chapter 13 bankruptcy, call Golden State Law Group at (858) 240-2480. We have the knowledge and skills necessary to help you overcome many of your financial difficulties.
Last updated 11 days ago
For many people, filing for bankruptcy is a terrifying process. The “all or nothing” quality of discharging one’s debts through Chapter 7 bankruptcy can be very intimidating—especially when it means having your assets liquidated. Still, reaffirmation agreements can grant you a little more control over which assets are liquidated and which ones you keep. Here’s a quick look at reaffirmation agreements and how they can help with the bankruptcy process:
Debt Repayment
When you file for Chapter 7 bankruptcy, you agree to have many of your assets liquidated in order to pay off your outstanding debts. A bankruptcy reaffirmation agreement, however, allows you to reinstate your obligation to pay off a particular debt by normal means. In essence, a reaffirmation agreement allows you to “take back” the terms of your bankruptcy as it applies to whichever debt you are reaffirming.
Court Approval
It should be noted that reaffirmation agreements are completely voluntary. Before you decide to enter into a reaffirmation agreement, you should have your bankruptcy lawyer help you determine whether it’s necessary. Even if you wish to go forward with a reaffirmation, it first has to be approved by a judge. If the judge determines that the reaffirmation is against your best interests, he will not approve it.
Property Retention
Why would someone wish to pay a debt that would otherwise by discharged? Most people opt for reaffirmation in order to keep a piece of property—a vehicle, for example. By signing a reaffirmation agreement, an individual agrees to resume his obligation to repay the auto loan, rather than forfeit the vehicle.
Though a reaffirmation agreement sounds straightforward, it can actually be risky. For help determining whether or not a reaffirmation agreement is worth the risk, you should contact Golden State Law Group in San Diego. Our team of bankruptcy lawyers is standing by to help you get through your bankruptcy situation. Call us today at (858) 240-2480 to get started.
Last updated 15 days ago
Being unable to make the next mortgage payment is every homeowner’s nightmare. If you’re in this situation, you’re likely struggling with late fees, which can make paying your mortgage even more difficult. Though you might not guess it, bankruptcy can be a great help when it comes to paying off late payments and outstanding mortgage debt. Here’s a quick look at how Chapter 13 bankruptcy affects your mortgage:
What is Chapter 13 bankruptcy?
Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows you to get out of debt via a 3-5 year repayment plan. After filing, a trustee takes out a percentage of your income and uses it to pay off your various debts. Chapter 13 bankruptcy also has less of an impact on your credit score, because it allows you to pay back some or all of your debts.
What is an “automatic stay?”
If you face foreclosure due to delinquent mortgage payments, filing for Chapter 13 bankruptcy is a very viable option. The moment you file, a judge issues an “automatic stay”—an injunction that stops all collection actions against you, including foreclosure. Filing Chapter 13 bankruptcy should give you the time you need to set up a realistic repayment plan.
What will become of my outstanding mortgage?
When you file for Chapter 13 bankruptcy, you can still pay your outstanding mortgage as normal. If you already have payments that are past due, that balance will be added to your total repayment plan. Over the next 3-5 years, it’s important that you make your payments on time and in full, or else your mortgage lender may resume foreclosure proceedings.
If you’re deep in debt and afraid that you may lose your home, contact Golden State Law Group. We know how stressful the prospect of foreclosure can be—that’s why our skilled bankruptcy attorneys will work hard to ensure that you get back on solid financial ground. If you have any questions, call us today at (858) 240-2480.
