Duarte Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 302

TITLE 11 - BANKRUPTCY
CHAPTER 3 - CASE ADMINISTRATION
    SUBCHAPTER I - COMMENCEMENT OF A CASE

-HEAD-
    Sec. 302. Joint cases

-STATUTE-
      (a) A joint case under a chapter of this title is commenced by
    the filing with the bankruptcy court of a single petition under
    such chapter by an individual that may be a debtor under such
    chapter and such individual's spouse. The commencement of a joint
    case under a chapter of this title constitutes an order for relief
    under such chapter.
      (b) After the commencement of a joint case, the court shall
    determine the extent, if any, to which the debtors' estates shall
    be consolidated.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2558.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      A joint case is a voluntary bankruptcy case concerning a wife and
    husband. Under current law, there is no explicit provision for
    joint cases. Very often, however, in the consumer debtor context, a
    husband and wife are jointly liable on their debts, and jointly
    hold most of their property. A joint case will facilitate
    consolidation of their estates, to the benefit of both the debtors
    and their creditors, because the cost of administration will be
    reduced, and there will be only one filing fee.
      Section 302 specifies that a joint case is commenced by the
    filing of a petition under an appropriate chapter by an individual
    and that individual's spouse. Thus, one spouse cannot take the
    other into bankruptcy without the other's knowledge or consent. The
    filing of the petition constitutes an order for relief under the
    chapter selected.
      Subsection (b) requires the court to determine the extent, if
    any, to which the estates of the two debtors will be consolidated;
    that is, assets and liabilities combined in a single pool to pay
    creditors. Factors that will be relevant in the court's
    determination include the extent of jointly held property and the
    amount of jointly-owned debts. The section, of course, is not
    license to consolidate in order to avoid other provisions of the
    title to the detriment of either the debtors or their creditors. It
    is designed mainly for ease of administration.

-End-
Professional Membership
