Filing for bankruptcy is a big decision, especially if you are planning to file for individual bankruptcy while married. You may be asking “If I file bankruptcy does it affect my spouse?” and “Can only one spouse file bankruptcy?” To answer these questions, consider talking to a bankruptcy lawyer. If your spouse is not planning to file with you, understanding how they may be affected is an important consideration to make before taking the step to file with the courts. Speaking to a bankruptcy lawyer can help shed light on not only the steps of bankruptcy but also answer questions about bankruptcy and spouse assets.
Under Chapter 7 and Chapter 13 bankruptcy, you are able to file as an individual without including your spouse. With this filing, the court will be focusing on your assets and debts, not your spouse’s. Where joint debts are concerned, filing as an individual will allow your parts of those debts to be discharged but not your spouse’s. For Chapters 13 and 7 bankruptcy filings, your spouse’s income could be considered when the court is evaluating your ability to pay your debts. Under Chapter 7, your spouse’s income may make you ineligible for a debt discharge and under Chapter 13 your spouse’s income could increase the payment amounts you will be making toward your debts. A pro to filing separately from your spouse is that their credit score can be preserved and their individual assets will be safe. In cases where the filer is in individual debt and has a low credit score, filing independently may be the better option to protect your spouse’s personal assets and credit score.
Chapter 11 bankruptcy filings can also be done as an individual to protect your spouse’s credit score and individual assets. Using Chapter 11 allows you to reorganize and reduce your debts without liquidating which may be beneficial if you are filing separately from a spouse. Under this type of bankruptcy, your spouse’s income will also be considered to determine your ability to pay back creditors.
Filing for any type of bankruptcy is a decision that will impact not only you but your spouse as well. Their income and any joint assets could be considered by the courts, whether that’s to your benefit or to your disadvantage. To fully understand your options and the impact of filing for bankruptcy, seek legal advice from a bankruptcy lawyer near you like Corey Beck and his office.
To ask questions and make the best decision for you, request a consultation or call our office at (702) 678-1999.
