11 USC 302 - Sec. 302. Joint cases
11 USC - U.S. Code - Title 11: Bankruptcy (January 2004)
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(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.
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.
Section Referred To In Other Sections
This section is referred to in sections 101, 362, 365, 522, 541 of this title.
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