Married couples are often unsure if they want to file for bankruptcy with their spouse. While it is often prudent for both spouses to file jointly, that is not always the case. For most people, it comes down to which option allows them to discharge the most amount of debt and keep more of your assets.
It's not uncommon for a spouse who comes into a marriage with outstanding bills to file individually and keep the debt-free partner out of bankruptcy—especially if it'll allow the non-filing spouse to retain a good credit rating.
Which Debts Do You Want to Wipe Out?
Filing jointly wipes out all of the dischargeable debts you both owe. However, if only one spouse files, the non-filing spouse will keep their individual debts and will still be responsible for any joint debts.
If one spouse has minimal individual or joint debt, it may be best for the other spouse to file alone. If you are uncertain about the amount of debt you and your spouse may have, a credit check can determine which debts have been reported.
How Much Property Do You Both Own?
When you file jointly, both spouses assets will be included in the filing. Whether you should file jointly bankruptcy with your spouse often depends on the exemptions you may be entitled to.
Bankruptcy Costs
The court filing fees are the same for both individual and joint bankruptcies
Effect on Your Credit
If you file bankruptcy jointly, it will appear on both spouses credit reports. Bankruptcy will have a short term negative effect on your credit. However, most people’s credit tends to increase within a month of bankruptcy.
If you are considering filing bankruptcy, speak to an Experienced Bankruptcy Attorney. The William T. Shaffer Law Group has over 30 years of experience and has helped thousands of people file for bankruptcy. Reach out to our legal team today for a free consultation.
Call (850)398-5187 to speak to an attorney.
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