Expert: Norma Duenas - California Bankruptcy Attorney - 12/2/2009

Question
QUESTION: HI, I have a dilemma, my boyfriend and I own a house and are suffering some seriour credit card debt, we both own our own credit card debt. His student loans ( which probably will not be part of the bankruptcy) and we each have our own cars with loans. We need to file for bankruptcy but we don't know if we should file seperately or if it would be better to get married? We also have a 2nd mortage. We have a new loan mod on our 1st mortgage but we still owe more then the house is worth with the combined mortages. He was recently laid off one of his jobs too.
What is your best idea?
Thank you,
Jennifer

ANSWER: First the cost involved with filing separate bankruptcy petitions is generally higher when filing separately then when you file a joint petition. It may be in your best interest to file bankruptcy together in terms of saving you cost, but please be aware that you should not be getting married for the sake of qualifying for bankruptcy. You should discuss your financial situation with a local bankruptcy attorney. Depending on your current income, assets and financial situation, they can better assess what would be in your best interest. It is difficult to determine whether filing jointly or separately is better in your situation, without examining your assets and finances.

http://www.socaladvocates.com

---------- FOLLOW-UP ----------

QUESTION: Hi Thank you for your answer. We own pretty much everything together which including the house is 252000. With the house being 210000,  and credit card 21999 and his car is 16000, his student loans being 21000 and mine car is 3000. Would it make more sence to file married or remain single and file seperately. We are planning on marrying eventuately but are wondering if it would make more sence to marry earlier as far as bankruptcy is concerned.

Answer
Unfortunately some of the information you provided does not clarify exactly what each person owns. When an attorney does a consultation they examine all assets that a person may have and all sources of income. This is a limited forum to go into the needed detail to determine whether filing together would be in your best interest. Only thing I can offer is assuming that all assets are protected if you were to get married (I can only assume since I do not know completely all of your assets and the state you are in) and that income from a household of two would still qualify you for bankruptcy, then it may benefit you to file together once married, in order to reduce your bankruptcy costs.  

http://www.socaladvocates.com