Legal Question in Bankruptcy in California
Spouse filing separately
When one spouse files separately for Chapter 7, are the assets of both parties included in the liquidation part or is the value divided in half?
2 Answers from Attorneys
Re: Spouse filing separately
All the assets--and income-- of the filing spouse must be listed. If the filing is in California, this includes the filing spouses's community property interest in the non-filing spouse's assets and income. I'm not sure what you mean by the "liquidation part", but yes you must list all the community property assets and income and of non-filing spouse. If the non-filing spouse has separate property assets or income, then they do not need to be listed.
Re: Spouse filing separately
Even if only one spouse files, all community property must be listed--the exceptions would be separate property owned by the non-filing spouse (inheritance, gift, property brought to the marriage, among others). All community property assets become part of the bankruptcy estate.