Many people wonder if they can file bankruptcy without including their spouse.  The answer is yes.  Every individual has the right to bankruptcy so long as he or she can demonstrate financial hardship.  A married couple can file bankruptcy together, which is called a joint bankruptcy, but they are not required to.  Bankruptcy will only forgive debts for the person who files.  If most of the debts are held jointly, a bankruptcy by one spouse would be of little benefit because the other spouse would remain liable.  If, however, most of the debts are in the name of one spouse, there may be no point in having the other spouse join in the bankruptcy.  Often I am asked, “Can’t bill collectors come after both of us if we’re married?”  That’s a good question.  The legal theory in California is that both spouses can be liable for debts incurred during marriage, but there are so many exceptions to that rule that consumer creditors rarely seek to collect from a spouse that did not sign the contract.  For credit reporting purposes, a bankruptcy will only show on the reports of the person who files.  Lastly, a caveat, if a married person files bankruptcy alone, that person must disclose his spouse’s income and assets.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.  We have offices in Walnut Creek, Antioch, and Hercules.

Bankruptcy law offers a fresh start to those bogged down by crippling debt.  But, alas, there is more to it.  To qualify for bankruptcy you need to document your finances and demonstrate a financial hardship.  In California, the bankruptcy system can look back four years to see if your divorce was a relatively fair deal between you and your ex-spouse.  Why do they care?

In some divorces people are so eager to get out of the marriage they find themselves thinking, and sometimes saying “Take everything, I don’t care just leave me alone.”  In other cases, the spouses collude to have one spouse take all the bills and the other take the house, retirement and other assets in order to allow one spouse to avoid bankruptcy altogether.  If your ex-spouse got a sweetheart deal that can be unfair to creditors which becomes a problem if you file bankruptcy.  The  bankruptcy system may question whether you can reopen the divorce to pursue adequate money to resolve your debts.  Perhaps you can or should have fought for half the equity in a house.  Perhaps you can or should have fought for alimony.  In an extreme case your bankruptcy can be dismissed (debts not forgiven) on the basis that your divorce was a scheme to defraud creditors.  Conversely, if you ended up with most of the assets from a divorce and nevertheless encounter financial problems and ultimately file bankruptcy, the bankruptcy system will not question the divorce.

That’s quite a bit of scare talk, right?  However, there’s no often no reason to worry.  The truth is divorce and bankruptcy commonly go hand-in-hand.  Financial problems strain a marriage and are often the root cause of divorce.  The bankruptcy system will inquire about a divorce but rarely is any action taken and in nearly all cases the bankruptcy is approved.

Another common question is: does my ex-spouse need to know that I filed for bankruptcy?  The answer is yes if you owe money to your ex-spouse for any reason including alimony, child support or have joint debts.  However, if you have no financial ties to your ex-spouse the court will not notify that person of your bankruptcy and usually that person will not find out.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation.  We have offices in Walnut Creek, Antioch, and Hercules.

According to Bureau of Justice Statistics, about 7% of U.S. residents over the age of 16 report being victims of identity theft each year.  That means thousands of people in Concord, Antioch, Pittsburg, Pinole, and Richmond are victims each year.  Most victims became aware of the theft when notified by a financial institution or law enforcement agency.  Stolen identities are most commonly used to obtain governmental benefits and/or credit cards.  The majority of victims experience monetary losses under $100 and are able to resolve the issues in under 30 days.   Of course, this number accounts for those who report being victims.

In my experience, many victims do not report identity theft because the offender is a spouse or relative of the victim.  Often the victim does not want to cause trouble or fears some retribution if the theft is reported.  Let’s be clear, use of your personal or financial information without your informed consent is identity theft.  Consent can be given and later withdrawn.  For example, in marriage, spouses often grant unfettered access to financial accounts and personal information; however, if the couple separates consent is usually withdrawn expressly or by implication.  Often people come to me swamped with debts they did not incur assuming bankruptcy is the only answer.  Bankruptcy forgives debts, but if you do not owe the money because the charges were incurred without your informed consent then a bankruptcy may not be necessary.  The Federal Trade Commission has wonderful resources to help victims of identity theft.  Many credit card lenders and some governmental agencies require only simple forms to remove fraudulent charges.  Despite other potential options, bankruptcy is often used as a cost effective way to resolve identity theft.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation.  We have offices in Walnut Creek, Antioch, and Hercules.