Legal Question in Bankruptcy in California
Chapter 13 while divorcing
When a couple filing for Chapter 13 is going through a divorce, must they state that they are separated on the petition? Will the BK go through even if they are divorcing? Is it legal to continue a divorce while filing Chapter 13?
1 Answer from Attorneys
Re: Chapter 13 while divorcing
All very good questions. The answers, not so easy. If the couple is legally separated at the time the bankruptcy is filed, they must so state. Actually, I am not sure they can file jointly if they are legally separated. If they are not legally separated, but living apart, they must list both incomes and expenses, as well as the assets of both, etc. and this will determine the Plan payments in the Ch. 13. I believe the divorce may proceed during the Ch. 13, but there are all kinds of ramifications if one spouse decides not to make the required plan payments, etc. It is much better usually to do one before the other, but I understand that that is not always possible.
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