1.  Do both spouses have to file for bankruptcy together?

No, both spouses do not have to file for bankruptcy.  One spouse can file alone but it might be beneficial for both spouses to file together.  Call for more information.

2.  Will I be able to keep my home if I file for bankruptcy?

It depends on how much equity you have in the house and which California exemptions is applicable to your case.  If you have equity in your house that are nonexempt after taking into account the cost of sales, you risk losing your house if you file for Chapter 7 Bankruptcy, which is the bankruptcy that liquidates nonexempt assets or assets that are not protected by the California exemption to repay your debts.  The bankruptcy code provides for protection for so much assets in consideration of your creditors.  Here is another reason why bankruptcy is not a do-it-yourself project and you should call an experienced Bankruptcy Attorney.

3.  Will I be able to keep operating my business when I file for bankruptcy?

If you own a business, you should be careful when considering which bankruptcy chapter you should file.  If it is a small business will very little assets and the value of the business is fully covered by the California exemption as well as all your other assets, you might be able to file a Chapter 7 Bankruptcy without the Chapter 7 Trustee liquidating your business or business assets.  However, most of my sole proprietor clients who own a business that generate significant income tend to fall under Chapter 13 Bankruptcy.  Generally, they have significant business assets or their business can be sold for more than what the California exemption can protect.  Keep in mind, that only sole proprietor can file for Chapter 13 Bankruptcy and not business entities like corporation, limited liability company, partnership.  However, business entities can file for Chapter 7 Bankruptcy but they cannot use the exemptions.  Business entities that file for Chapter 7 Bankruptcy usually do so to liquidate their assets to pay their creditors and closed their doors.  Business entities that want to reorganized usually file for Chapter 11 Bankruptcy to keep their assets and continue operation.  This office does not represent debtors in Chapter 11 proceeding.

This website is not intended to take the place of a bankruptcy attorney and cannot fully cover the complexity of bankruptcy.  For more information, call Muoi Chea who is an experienced Fairfield Bankruptcy Attorney serving Fairfield California and Solano County CA.