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  • A Joint Chapter 7 Bankruptcy Filing

    A Joint Chapter 7 Bankruptcy Filing

    Joint Bankruptcy or Joint Chapter 7 Bankruptcy is the filing opted by married couples who face surplus debts and seek options to have them discharged as they have challenges of paying them. Let’s first understand how the filing of Joint Bankruptcy works –

    • A single set of bankruptcy papers are filed on behalf of the married couple (though there are two individuals involved)
    • All property information, debts, income to the family and expenses are submitted to the court
    • Debts can be those that are jointly owned or can be the ones that an individual owes to other
    • Details of the debts that are expected to be discharged have to be provided in the petition – debts that can be allowed to be discharged as per Chapter 7 are considered in the joint petition
    • For discharging of debts, the assets are usually cannibalized – it is normally not possible to protect every asset. Hence it is important to understand the risks involved in jointly filing for bankruptcy especially when you own properties with your spouse
    • If the joint petitioners are from the Texas region, they can review the Federal and State Bankruptcy exemptions in order to protect their properties against liquidation in cases of filing a bankruptcy. One motor vehicle per licensed family member, 100-200 acres of property in the country or 10 acres in a city are some of the state level exemptions in Texas. Reviewing these with the bank attorney prior to filing the joint petition is a wise move

    Now that we know how the filing process works, let’s also assess the advantages to opting for a joint bankruptcy filing.

    • As filing for bankruptcy is an expensive ordeal, do it jointly is definitely going to cost you less. It will save couples from paying double the filing fees and paying your attorney twice the amount
    • Most of the dischargeable debts are appropriately taken care of and eliminated in the joint bankruptcy filing
    • The efficiency of completing the bankruptcy case is better when filed jointly – you save time by handling all of the tasks at a single phase/ time

    However, there are some disadvantages to this process –

    • All of the assets that are individually owned or jointly owned are disclosed during the filing procedure. This can also end up in liquidating valuable or viable properties by the trustee handling your case – at times the partner who owns more properties end up losing more of it
    • The couple ends up in owing too much of priority debt. As per the clauses of Chapter 7, there are certain kinds of debts that cannot be discharged – taxes, mortgages and child support are some of this kind. In cases of these, the repayment in full of these debts also needs to be done jointly as per Chapter 13. In such situations, the partner who owes the debt can file the bankruptcy individually

    Are you perplexed of whether to opt for a joint fling or not? A renowned law firm and the experienced attorneys will help determine your case and advise the course of action as needed. Seeking the assistance of such firms like the Recovery Law Group can put you in better positions of handling your bankruptcy scenario and also retain some of your prized assets by saving them from liquidation.


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    • Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court

      Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court

      The bankruptcy laws have been enacted to make life easier for people who are undergoing tremendous financial losses. However, despite filing for bankruptcy and getting a discharge, many times, creditors still harass debt filers for dues. Citing the bankruptcy case of Jarvar, Stanley E. and Barbara J.; In re (Jarvarv. Title Cash of Montana Inc., et. al.), the Los Angeles based law firm Recovery Law Group respite is available to debtors from creditors who violate bankruptcy discharge. Such creditors can be held in civil contempt.

      How Jarvar v. Title Cash of Montana Inc., et. al. Bankruptcy Case Changed Things

      In the above case, debtors had filed for bankruptcy under Chapter 13 with Title Cash filing proofs of claim for 2 secured claims, an amount of $7,290 each. On a later date, they withdrew both secured claims to file a single POC for a secured claim of $14,605. The debtor’s case was converted to Chapter 7 and dismissed.

      As per the trustee’s final report, Title Cash had $6,046 in principal and $1,041 in interest. The debtor then filed for Chapter 7 relief in September 2004 with Title Cash scheduled as a secured creditor and received a discharge on January 1st, 2005. However, in September 2008, the debtor filed for a state court action against Title Cash with the latter responding with a counterclaim requesting in personam relief against the debtor.

      This led to the filing of an adversary proceeding for a violation of Section 362 and 524. The bankruptcy court granted summary judgment to the debtor for seeking relief for a discharge injunction violation. Since Title Cash couldn’t file a statement of genuine issues, the facts submitted by the debtor in her Statement of Uncontroverted Facts were acknowledged.

      The creditor (Title Cash) was in violation of bankruptcy discharge, as he attempted to make the debtor personally liable (in personam) for the debt post its discharge. This is not a rare occurrence but a common practice amongst creditors. Violation of debtor’s bankruptcy discharge costs not just the debtor’s time and energy but also money which is of great importance in the current scenario. However, there have been instances when debtors have received compensation for this behavior of creditors (violation of bankruptcy discharge).

      In case a creditor is asking for payments even after your debt has been discharged in bankruptcy, you don’t need to bow down to any pressure. Contact your bankruptcy attorney to deal with such creditors.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.