Los Angeles Bankruptcy Attorney

Understanding the Implications of Filing Jointly

If you are going through a difficult time financially, and you are your spouse are considering the possibility of filing for bankruptcy, it is very important that you speak to a knowledgeable Los Angeles bankruptcy lawyer about the benefits and disadvantages of filing jointly. At the Mathews Law Firm, our highly qualified attorney has help ed thousands of clients evaluate joint filing in the past. With over two decades of experience helping clients through the most difficult of financial situations, you can rest assured that we have the dedicated knowledge necessary to help through the complicated process of filing for bankruptcy.

The Ins and Outs of Joint Filing

One of the main benefits of filing for bankruptcy jointly with your spouse is that it eliminates a large number of your jointly-held marital debts. During the course of a marriage, it is very common to accumulate a number of shared assets and debts. Filing for bankruptcy alone could leave the other spouse still liable for his or her share of the joint debts, and your individual case should be evaluated before you make a decision. It is important to know that while married, any property accumulated is considered community, or marital, property. All property earned or received during the marriage is split 50/50. When filing for bankruptcy, any community property will be factored into the proceedings regardless of whether or not you filed individually or jointly with your spouse.

Separately held property, or property obtained before or outside of the marriage, is another matter. Should your spouse decide to file individually, your individual property, in most cases, will not be affected. While filing individually may be a way to protect your individual property, it can create difficulty if the bankruptcy court determines you are trying to avoid debt you actually could pay off. If your spouse attempts to put property under your name in order to protect it from the bankruptcy trustee, there could be serious legal repercussions. Whether or not you should file jointly or separately depends on a number of factors. It is very important that you discuss your situation with one of our attorneys before deciding on your plan of action.

Joint filing can be a complicated undertaking. Contact a Los Angeles bankruptcy attorney to evaluate your options.