Legal Question in Bankruptcy in California
what about if one of the spouses wants to file for bankruptcy and one does not if there is a court hearing can they deduct or make the spouses that didn't want to file pay restitution to the who ever is owed money?
2 Answer from Attorneys
It is permissible, though probably not adviseable, to file bankruptcy individually even over the protestation of your spouse. The problems are many-fold - many are not legal problems which I think you already may suspect exist - but from a legal perspective, you would be required to file with the Court a list of all assets owned by you and your non-filing spouse. You also must include your non-filing spouse's income in both Schedule I (and their expenses on Schedule J), and more importantly, in the Means Testing form. There is no "restitution" paid in bankruptcy, however, if you end up having to file Chapter 13 for a number of reasons, the Court will use both your and your non-filing spouse's income to determine what your plan payment is, and that could lead back to the non-legal problems - your spouse is likely to be very, very angry if you have to make a payment which effectively leaves your household with no disposable income. Good luck, and I strongly encourage you and your hesitant spouse to consult with a local bankruptcy attorney. Most offer a free, initial consultation which might alleviate some of your spouse's concerns.
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