What is the difference between a joint bankruptcy filing and an individual filing?

A joint bankruptcy filing and an individual filing are two different ways for an individual to declare bankruptcy in California. In a joint bankruptcy filing, two people, typically spouses, file the bankruptcy petition together and assume joint liability for the debt incurred. Whereas in an individual filing, the filer is the only person responsible for the debt incurred. The most significant difference between the two filing types concerns the property owned between the joint filers. With a joint filing, the court considers all of the shared property as one unit, with both parties owning the property in equal parts. This means that the court may divide the property equitably if it finds that one of the parties has acted unfairly or has not paid the debts associated with the property. In an individual filing, the property owned by the filer is considered solely their own, with no implication of shared ownership. Joint bankruptcies are also more complicated than individual filings as both parties must take responsibility for any debts and be able to reach agreement about how to pay them back. It is important to note that if the parties are unable to reach a mutually satisfactory agreement, they may need to appoint a third party to handle the process. Individual bankruptcies are generally simpler and can be easier to file because there are fewer details to agree upon and the filing party is solely responsible for the debt. However, a filer considering an individual filing should be certain to inquire about the potential drawbacks to filing an individual bankruptcy, as it could affect their credit score negatively.

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What is the difference between a joint bankruptcy filing and an individual filing?

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