How to File for Separate Households in Chapter 7 Bankruptcy
- 1). Collect information on both spouses. You need paycheck stubs, assets and debt information for each spouse, even if you are filing as separate households. This information helps to give the bankruptcy court a better financial picture of the entire household's financial situation. Tax returns for the previous 5 years are also a good idea, even if you were not married at the time.
- 2). Take all of this information to a bankruptcy attorney. If you are filing as separate households, you may want to consider hiring separate bankruptcy attorneys. While there is no "conflict of interest" if you hire the same attorney, it may become complicated if one attorney attempts to handle both chapter 7 estates. Discuss this option with your spouse.
- 3). Create your bankruptcy petition and schedules with your bankruptcy attorney. Your bankruptcy petition is your initial petition to file for bankruptcy. This activates the "automatic stay" in your proceeding which keeps all creditors from contacting you or initiating collection proceedings; it also stops any foreclosures or repossessions. Your schedules contain the names and contact information of every creditor you have including what amount you owe each creditor.
- 4). File your chapter 7 bankruptcy documents with the bankruptcy court and attend your first meeting of creditors. Your attorney can file your bankruptcy petition with the court. Once it has been filed, a first meeting of creditors will be set up within 21 to 40 days. At this meeting your creditors have the option to ask questions and your assigned chapter 7 trustee will review your documents.
- 5). Complete both bankruptcy cases until discharge. If you file as separate households, it is important to stay on top of your bankruptcy cases. Make sure both cases reach a discharge. A discharge means that all debts included in the chapter 7 plan have been discharged or "wiped clean." If only one household's bankruptcy case is discharged and the other is simply dismissed (thrown out of bankruptcy court), both debtors, as a married couple, could still owe money to creditors.