Modesto, California Bankruptcy Lawyers

Both spouses are not required to file for bankruptcy if only one of them wants to file. However, the income and asset information of the non-filing spouse is taken into consideration in determining whether the filing spouse qualifies for a chapter 7 or 13 bankruptcy. Also, if one spouse files then it is possible for the creditors to go after the community property of both spouses. The Modesto attorneys at the law office of Ben Roberts will guide you through this area of the law to make sure you don’t lose any property.

One Spouse Filing for Bankruptcy-Modesto Attorneys

If one spouse has great credit and or no debt, then it would certainly make more sense for that spouse not to file for bankruptcy. However, keep in mind that the income of both spouses is taken into consideration when determining whether the filing spouse qualifies for a chapter 7 bankruptcy. For example, if husband has no income, but wife makes over 100k a year, then husband may not qualify for a chapter 7 bankruptcy. If the household income is more than the median income allowed for the particular family size, then the filing spouse may be forced into a chapter 13 bankruptcy. Furthermore, if you have someone else living in your home, the income that person contributes to the home is taken into consideration when determining bankruptcy qualifications. If that person doesn’t contribute much to the home, and you provide over half of their support, then they may help you qualify for a chapter 7.

One Spouse Filing a Chapter 13-Modesto Attorney

If the filing spouse doesn’t qualify for a chapter 7 because his income is too high, then he may choose to do a chapter 13 where he will be required to pay a percentage of his debt back to his creditors. Even though the non-filing spouse won’t be involved in the chapter 13, his or her income is taken into consideration along with any other household income when determining how much the filing spouse repays.

Credit and the Non-Filing Spouses-Lawyers Modesto

The non-filing spouse’s credit should not be affected by the filing spouse’s credit. No bankruptcy should appear on the non-filing spouse’s credit report unless there is joint debt. Contact the law office of Ben Roberts today for a free consultation with a Modesto bankruptcy attorney.