Last week, the Department of Justice decided to relent on its pricey opposition to allowing same-sex couples joint bankruptcy. They used the ruling of a Los Angeles court as their precedent.
Last month, a LA judge ruled that Gene Douglas Balas and Carlos Morales could file for joint bankruptcy. Joint bankruptcies aided by bankruptcy attorneys have previously been restricted to heterosexual marriages. Twenty four additional judges from California bankruptcy courts signed onto the opinion, as reported by Reuters. The Federal government was ordered to longer recognize the Defense of Marriage Act.
Tracy Schmaler, a spokeswoman for the Department of Justice stated, “The Department of Justice has informed bankruptcy courts that it will no longer seek dismissal of bankruptcy petitions filed jointly by same-sex debtors who are married under state laws.”
The couple was married in California when it was briefly legal and the Chapter 13th filing was opposed by a bankruptcy trustee. The court overturned his objection stating it violated the couple’s civil rights. This ruling allows the couples to save money court fees and bankruptcy lawyer fees.
The ruling also paves the way for other gay and lesbian couples across the country by allowing them to avoid filing separately, and untangling their financial affairs, because their finances intertwine through joint accounts and investments much like straight couples.
The financial crisis and unemployment has affected numerous people across the country. Bankruptcy lawyers can be employed to help couples no matter what their orientation.
