What happens if you divorce while in Chapter 13?

What happens if you divorce while in Chapter 13?

If you are involved in a chapter 13 bankruptcy and decide to file for divorce during the repayment period, you can choose to cancel or restructure the bankruptcy plan. By canceling, you agree to stop the agreed upon payment plan; however, all debt you and your spouse have assumed will still be your responsibility.

Can one spouse file for bankruptcy and not the other?

You can file for a bankruptcy in California either jointly with your spouse or individually. California is a community property state, and even if you file bankruptcy separately without your spouse, your community property is protected. Creditors cannot come after any part of it as long as you are married.

Can I file a Chapter 13 without my spouse?

Yes, a married individual can file for Chapter 13 bankruptcy without their spouse. But if you share a household, your spouse's income must be included in the petition. Those who live in separate households do not need to include their spouse's income — which is often the scenario in a separation case.

What happens if I get married while in Chapter 13?

In a Chapter 13 Bankruptcy, you are required to pay your disposable income into your bankruptcy plan in order to pay back your creditors. For those who get married after their case is filed, their household income may increase if their new spouse is employed.