Legal Question in Bankruptcy in California

There are variables to consider regarding the dynamics of foreclosure and bankruptcy. I won't address those, but I'll address the marital status and dissolution issues.

You do not have to file for bankruptcy with your husband. Separate filings by spouses are permitted, however, a non-filing spouse's income and all community property are part of the equation. If your husband files while you are still married, you may be asked to sign a particular waiver and may want to seek independent counsel.

All community property is part of the bankruptcy estate, which is subject to liquidation in chapter 7 bankruptcy and may affect payment amounts due under chapter 13.

Marital status and separation status are relevant to the income factor, which is determinative for chapter 7 eligibility and affects payment amounts due under chapter 13.

The trustee will want to know about pending or past property settlement agreements.

Standard disclaimer: the above statements are opinion with a general, rather than specific application provided for informational purposes only; they do not constitute legal advice, do not create an attorney-client relationship, and should not be relied upon as they do not anticipate all conflicts, contingencies and factors of which only an attorney of record would know. Congress keeps busy legislating and these statements may not reflect the current state of the law. All bankruptcy petitioners should seek legal counsel.