Married couples · Beverly Hills
Chapter 7 for Married Couples: Filing Alone or Together
Married couples in California can file Chapter 7 together or one spouse can file alone. California is a community property state. So a filing by one spouse still brings in the couple's community property, and the other spouse's income still counts in the means test. Call (310) 362-9071 to compare both options before you decide.
- A joint case is one case with one court filing fee
- Community property comes into the case even if only one spouse files
- A non-filing spouse's income counts in the means test, with some deductions
At a glance
How community property works when one spouse files
When one spouse files Chapter 7 in California, all of the couple's community property becomes part of the case. That is true even if the property is only in the other spouse's name.
Community property is, in general, what either of you earned or bought during the marriage. Separate property is what each of you owned before the marriage or received as a gift or inheritance. The non-filing spouse's separate property stays out of the case.
Because community property comes in, the trustee will look at both spouses' assets. Our Chapter 7 trustee guide explains what the trustee checks. Exemptions still protect much of what you own, so this rarely means losing the family's things.
The community discharge
California couples get a special benefit when one spouse files. It is called the community discharge.
After the filing spouse gets a discharge, creditors with community claims generally cannot collect from community property you acquire after the case is filed. That can include debts only the non-filing spouse signed for, if they are community debts.
The protection has limits. The non-filing spouse is not personally discharged. A creditor can still go after that spouse's separate property and, in some cases, that spouse personally. If the non-filing spouse has large debts of their own, a joint filing is usually the cleaner choice.
Your spouse's income and the means test
The means test counts your spouse's income even if only you file. This surprises many people. It is still household income for the test.
There is a deduction called the marital adjustment. It lets you subtract the part of your spouse's income that pays only for your spouse's own needs. Examples include their separate debts, their own taxes, or support they pay for a child from another relationship. Money spent on shared household bills cannot be deducted.
Because the rules are detailed, a means test evaluation is the first step for most married clients.
Filing together or filing alone
| Joint filing | One spouse files | |
|---|---|---|
| Court filing fee | One fee for both | One fee |
| Whose debts are wiped out | Both spouses | Only the filing spouse, plus community discharge protection |
| Property in the case | All community and both spouses' separate property | All community property and the filer's separate property |
| Credit report | Shows on both reports | Shows only on the filer's report |
Filing together often makes sense when you both signed for most of the debts, or both of you have debts in your own names.
Filing alone may make sense when the debts are mostly in one spouse's name, the other spouse has valuable separate property, or the other spouse needs to protect their credit for a loan or a job.
Either way, you must choose the same California exemption system. If only one of you files and you want System 2, both spouses must waive System 1 in writing. See California exemptions: System 1 vs. System 2.
Our Chapter 7 flat fee starts at $1,200 plus the court filing fee. See what Chapter 7 costs.
What to watch for: bankruptcy and divorce timing
If you are separating, timing matters. Here are the main points:
- Before the divorce is final, you are still married, so filing together is possible. It can wipe out shared debts in one case, so neither of you is left with them.
- During a divorce, filing puts the property division on hold. The divorce itself, custody and support can keep going. Learn more about the automatic stay.
- After the divorce, debts you owe your ex-spouse under the judgment usually cannot be wiped out in Chapter 7. Child support and alimony never can. See debts Chapter 7 does not wipe out.
- A divorce judgment does not bind creditors. If your ex was ordered to pay a joint card and stops, the creditor can still come after you.
Read the full overview of Chapter 7 bankruptcy in Beverly Hills.
What it costs
- Chapter 7: flat attorney fee from $1,200, plus the $338 court filing fee
- Chapter 13: attorney fee quoted in writing, and part of it can be paid through the plan
- Payment plans are available, and the first consultation is free
More on Chapter 7 bankruptcy
- Chapter 7 bankruptcy in Beverly Hills
- California Median Income Figures for the Means Test
- What Debts Are Wiped Out in Chapter 7
- Debts Chapter 7 Will Not Discharge
- Can I Keep My Car in Chapter 7?
- Can I Keep My House in Chapter 7?
- The Chapter 7 Timeline, From Filing to Discharge
- What the Chapter 7 Trustee Looks For
- Filing Chapter 7 With No Income or Between Jobs
- Filing a Second Chapter 7: The Eight-Year Rule
- Chapter 7 for Married Couples: Filing Alone or Together
- What Happens at the 341 Meeting of Creditors
- Redeeming a Car in Chapter 7
- Means test evaluation
- Reaffirmation agreements
Married couple Chapter 7 questions
Can one spouse file Chapter 7 without the other?
Yes, one spouse can file Chapter 7 without the other. The non-filing spouse does not sign the papers. But in California, the couple's community property still comes into the case, and the spouse's income still counts.
Will my spouse's credit be hurt if only I file?
No, your spouse's credit report will not show your bankruptcy if only you file. Joint accounts may still be reported, because both of you are on them.
Do we pay two filing fees for a joint Chapter 7?
No, a joint Chapter 7 for spouses is one case with one court filing fee. That is one reason couples with shared debts often file together.
Does the community discharge protect my spouse?
The community discharge protects your spouse only in part. It generally stops community creditors from reaching community property acquired after you filed. It does not protect your spouse's separate property, and it does not discharge your spouse.
Free consultation
Decide together with clear facts
Call (310) 362-9071 or send the form. We can compare a joint filing and a single filing with you at your free consultation.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.