California is a community property state, as you may or may not be aware. As a result, many individuals believe that if one spouse declares bankruptcy, the other must as well. While this is true in some instances, it is not the case in all. Keep reading to learn more and then contact The Law Offices of Paul Y. Lee at 888-748-0025 for help.
Situations in which only one spouse is eligible to file for bankruptcy
There are a few circumstances in which one spouse can file for bankruptcy without the other having to. If the debt is distinct property, the debtor spouse will most likely be allowed to file individually without the need for their spouse to file as well. This includes debt incurred before to the marriage or debt that is not considered communal property.
Even married couples should use additional caution
Remember that married couples should get legal advice before deciding that just one spouse can file. Why? Because assets might shift from being distinct to becoming common property in specific instances. Are you unsure how to file your documents? For a free consultation, contact The Law Offices of Paul Y. Lee today.
Other bankruptcy misunderstandings in California
While the question of whether both couples must file for bankruptcy is frequently misunderstood, it is far from the only myth concerning bankruptcy in California. Some people, for example, assume that declaring bankruptcy would result in them losing their employment. The fact is that there is a clear legislation that prohibits businesses from discriminating against workers or job applicants who are in bankruptcy or who have acquired debts prior to filing for bankruptcy.
Another common misunderstanding we’ve heard is that declaring bankruptcy will result in the loss of one’s home and vehicle. The reality is that The Law Offices of Paul Y. Lee can virtually always assist you in maintaining your house and/or automobiles.
The goal is to keep your auto and/or house payments current. If you do, lenders will not foreclose or repossess your home. You’ll owe them free and clear once you’ve paid off the debts. Depending on your age, health, and the size of your household, we can safeguard up to $175,000 in value if you have equity in your home. Other personal goods, such as automobiles, can also be protected up to $25,000 in value. Check out our California exemption table for additional details.
Now is the time to seek assistance with your bankruptcy
Are you thinking of filing for bankruptcy? Do you have any concerns regarding the best course of action? Why wouldn’t you call The Law Offices of Paul Y. Lee instead of any other debt reduction organization or attorney? We are experts in California bankruptcy and can guide you through the whole process. Declaring bankruptcy is rarely an easy decision, but it is frequently the best one. For a free consultation, call The Law Offices of Paul Y. Lee now at 888-748-0025.