Friday, November 25, 2022
HomeMust ReadCan A Married Person File For Bankruptcy Alone

Can A Married Person File For Bankruptcy Alone

How Your Spouses Income Impacts Your Bankruptcy

CAN JUST ONE SPOUSE FILE BANKRUPTCY?

When considering Chapter 7 bankruptcy youll have to pass a means test to prove you dont make too much money to be allowed to file. Even if you file individually, youll still have to include your spouses income when the court considers your eligibility. The court wont allow you to enjoy the discharge of debt that Chapter 7 provides when you and your spouse earn too much money each month.

The one exception is that you can leave off any income your partner brings in that isnt used in support of the household. This is known as the marriage adjustment. The adjustment can subtract some of your spouses expenses such as a car payment, child support and alimony, and medical expenses. This adjustment could change the figures in your favor and allow you to get under the maximum income figure to file for Chapter 7 Bankruptcy.

Can Spouses File Bankruptcy Separately

If you and your spouse are contemplating filing for bankruptcy, you may wonder if you are required to file jointly. Married couples can, in fact, file separately. When filing for bankruptcy in Jacksonville, married couples have the following options when choosing to file for Chapter 7 or Chapter 13:

  • One spouse files individually
  • Both spouses file individually

When You Might Want To File After Getting Married

If you and your spouse both have a significant amount of debt, you may want to file for bankruptcy together after you get married. This will allow you to save money on court costs and legal fees because you’ll only need to file one case. You’ll also save time on meetings with trustees and creditors.

It’s important to note that if you go this route and you or your spouse has significant property assets, they’ll be a part of your bankruptcy sale. In this situation, it’s a good idea to file for bankruptcy individually so you can protect these assets.

Read Also: Bankruptcy Records Wisconsin

Can I File Bankruptcy Without My Spouse

Can you file bankruptcy without your spouse? The answer is yes, filing bankruptcy without a spouse is legally permissible, although you may have to include information about your spouse on your forms, also known as schedules, when you make your petition to the bankruptcy court.

Here are some valid considerations and answers to frequently asked questions. If you file for bankruptcy without your spouse, it will typically not affect your spouses credit, unless the debts you are attempting to discharge are joint debts, meaning that you and your spouse applied for them together, such as a credit card or bank loan with both of your names on it. In this case, your bankruptcy filing may appear on your spouses credit report, and your creditors may have a second option coming after your spouse even if bankruptcy results in a discharge of your debt.

Beyond just debt, another issue for married couples to consider when evaluating bankruptcy is property owned by the spouses. If one spouse owns property in their name only and is not the spouse filing bankruptcy, it generally wont become part of the bankruptcy estate. This is especially important in Chapter 7 liquidation bankruptcies, because the non-filing spouses completely-separate property will not become part of the bankruptcy estate, will not be subject to sale to pay creditors, and can exceed any applicable Texas or federal exemption amounts that would typically be applied in order to protect the property.

Tenancy By The Entirety

How often can you file for each type of bankruptcy?

Tenancy by the entirety is a form of property ownership. Not all states recognize this provision. In those states that do, some apply it only for real property, while others apply it to personal property as well.

The owners must be marriedor in some cases, registered domestic partnersand must have acquired the property at the same time. This property is exempt in a bankruptcy case . It cannot be reached by a bankruptcy trustee except to satisfy joint debts.

The same is true for creditors. Creditors cannot force the sale of entirety property unless the parties are both liable on the creditor’s debt.

Don’t Miss: Can You Get An Auto Loan After Bankruptcy

Can A Married Person File Bankruptcy Individually

If so, what is the negative effect on the spouse? What if theyre both on the debt? What if theyre both on title to a house and on the mortgage?

Notes:

Yes, each individual can file bankruptcy Any joint debt becomes the responsibility of the non-filing partner. If a husband files, all joint debt becomes the responsibility of the wife. Filing alone leave the spouse still liable for his/her share of joint debts If both on debt: only one spouse will be discharged while the other will still be liable for the debt In CA and NV- whether a married person files alone or with their spouse all community property is considered to be part of the bankruptcy estate, which is liquidated by the bankruptcy trustee to pay creditors before a bankruptcy discharge can be granted Common law states: only property that is held jointly can be liquidated to pay creditors, if the non-filing spouse holds individual assets he/she does not need to worry about losing anything

Article:

Filing for bankruptcy is a difficult decision to make, especially for married couples. A common question raised in this situation is whether a person can file for bankruptcy individually and if that decision will negatively impact their spouse.

Bankruptcy attorney Pomona can offer you best legal services to satisfy your needs. To clear the doubts regarding your bankruptcy filing, you can make a free consultation with our bankruptcy lawyer Pomona.

If I Am Married Can I File Bankruptcy By Myself

If you are married, one spouse can file bankruptcy individually. This will leave the other spouse out of the bankruptcy, entirely. This post details this option, and when this option may prove more appropriate than filing bankruptcy jointly, as a married couple.

Oregon is a separate property state when it comes to a persons debt. If a husband incurs credit card debt in his name only, his wife will not be liable for this debt. Therefore, sometimes it makes sense to file bankruptcy for only one person in the marriage instead of both people. This is particularly true if the husband or wife came into the marriage with substantial debt and needs to file bankruptcy, but does not want to pull the other spouse into his or her bankruptcy or, if one spouse incurs substantial debt during the marriage , while the other spouse is relatively debt free, and so on.

I generally charge the same amount for individual bankruptcy as I do for a joint bankruptcy . I even had one case where a couple who were engaged to get married, moved their marriage date up so that they could file bankruptcy and only pay for one bankruptcy rather than paying for two separate bankruptcies.

If you have concerns about filing bankruptcy and how it may affect a spouse who does not want to file bankruptcy, please call today to schedule a free bankruptcy consultation.

CONTACT US NOW

Don’t Miss: Filing Bankruptcy In Wisconsin Without A Lawyer

Can You Declare Bankruptcy By Yourself If You Are Legally Married

Bankruptcy is sometimes the only option for a person. However, declaring bankruptcy can have a devastating impact on a personâs financial agency. If someone is legally married and on the verge of declaring bankruptcy, they are probably wondering whether their spouse is automatically included in that declaration. The good news is that a person can declare bankruptcy independently without involving their spouse. In other words, a married individual who chooses to declare bankruptcy will not cause bankruptcy for his /her spouse.

Can A Married Couple File For Bankruptcy Together

Bankruptcy Basics – Part 1: Introduction

If both people in a marriage are overwhelmed by debt and are considering filing for bankruptcy, they have the option to file jointly. Sometimes couples pursue bankruptcy together to take away the stress that debt carries, to protect assets, and to stop wage garnishing. When filing jointly, couples can save on fees and paperwork.

Recommended Reading: How To File Bankruptcy In California

Why Does My Spouses Paycheck Affect My Bankruptcy

Even if only one spouse wants to file for bankruptcy alone, the courts will take into account the other spouses income.

If the other spouse is making enough money, then you will have to file a Chapter 13 bankruptcy, which includes a repayment plan.

This is true even if your spouse doesnt file the bankruptcy with you.

This process whereby courts look at the income of a spouse who may not even owe the debts, and decide whether that spouses income must be paid into a Chapter 13 Plan, was added with the 2005 law change.

I find it unfair because oftentimes the spouse with the higher income doesnt even know about the debts, and didnt participate in creating them.

For example: the debts might be from:

  • Before the marriage
  • A failed business that only one spouse operated
  • A secret gambling, alcohol, or shopping habit

But the spouse has to pay.

  • Is it fair to make the other spouse pay in these circumstances?
  • Wouldnt it be better to leave that decision to the married couple?

Regardless of your situation, your attorney will have to do a means test to prove that you are not required to file a Chapter 13 Bankruptcy.

Expect your attorney to ask you for pay stubs or other information about your spouses income, even if they dont plan to join the case.

Filing For Chapter 7 Bankruptcy Without Your Spouse

Chapter 7 is considered a liquidation filing. In other words, nonexempt assets are sold to pay off as much debt as possible. Debt is discharged, and the filer lives with the hit on the credit report and score for the next 10 years.

A means test is required when filing Chapter 7 bankruptcy it basically determines if you qualify for Chapter 7. Its based on household income from six months before filing the petition. If the couple shares the same house, your spouses income must be included in the means test, even if you filed on you own. Expenses that do not benefit the household can be subtracted from the spouses contribution to the household income. More on that to come.

Once Chapter 7 is filed, an automatic stay is put in place. This legal action stops garnishments, foreclosures, repossessions and any debt collection lawsuit. But the stay only applies to the individual who files. If there is any joint debt shared by the couple, the spouse continues to remain responsible for that debt.

Its important to know if you live in one of the nine community property states. If so, the automatic stay extends to the community property of the couple that was earned or acquired during the marriage. This typically means the non-filers wages cannot be garnished for community debt in those nine states.

Once the Chapter 7 filing is discharged, the only person protected by the discharge is the individual who filed. The non-filing spouse remains liable for any joint or co-signed debts.

Recommended Reading: How Many Bankruptcies Has Donald Trump Filed

How Long Does Bankruptcy Stay On A Credit History

A bankruptcy will be reflected on credit history for 6 years, but it is possible to apply for and obtain new credit within as little as two or three years . Many people who file bankruptcy go on to successfully get a new credit card, mortgage or vehicle financing within just a few years of bankruptcy discharge / completion.

Will My Chapter 13 Bankruptcy Affect My Spouse’s Interest In Our Joint Property

What Happens When Only One Spouse Files for Bankruptcy in ...

No, because Chapter 13 trustees don’t sell property. However, the trustee will factor your interest in nonexempt property into your case , and it can drive up your monthly payment amount fast. Why? Because if you want to keep a nonexempt asset in Chapter 13, you must pay an amount equal to its value in the Chapter 13 repayment plan.

Read Also: How To Declare Bankruptcy In Canada

Jan If I Am Married Can I File Bankruptcy By Myself

Bankruptcy can be filed jointly as one case if you are married but it doesnt have to be. I often am asked the following question: If I am married, can I file bankruptcy by myself, without my spouse?

The simple answer is yes you are allowedtofile bankruptcy without your spouse, but it may not be effective and may even be advised against.

When I am asked this question, I often find a couple who think if only one person files, there will be some advantage, typically that they can preserve the credit of the other. If you are married, you need to understand all the implications of one spouse filing a bankruptcy case.

You have to determine three things:

3) what additional benefits are gained by a joint bankruptcy filing

1) Benefit of solo filing: If you file without your husband or wife, only your liability for debts are discharged. If eliminating your debts would solve your familys problems, then it might be a good idea to file bankruptcy solo.

This would be effective if there are two people who each have debt in their name, but one has a good deal of debt while the other has just a little bit.

In the case of aChapter 13filed to stop a foreclosure, sometimes all it takes is one of them filing if both are on the loan/deed and may preserve the right of the other spouse to file at a later date. The decision to file alone or together should be made on a case by case basis with your lawyer.

Some of the factors that need to be considered are:

Can A Married Person File Bankruptcy Without A Spouse

HomeBankruptcyCan A Married Person File Bankruptcy Without a Spouse?

The emotional and financial challenges that life can throw at you are much easier when faced with a partner. That is part of the reason people tie the knot and get married. However, there are some obstacles you might want to keep your spouse well protected from.

For instance, you might face money problems and have to consider filing for bankruptcy. Its a difficult decision, especially if your spouse could face harm during your bankruptcy. Thankfully, bankruptcy doesnt have to be filed as a couple, and there are ways to protect your partner from absorbing collateral damage once you file.

You May Like: Bankruptcy Form Software

Filing For Bankruptcy Jointly

Since every couples debt and financial details are unique, its important to consult with a bankruptcy attorney in Jacksonville to determine which course of action is best for your situation. Filing for bankruptcy jointly may be the right decision for you if the following apply to you:

  • Your debt is shared. If your debt is owned together and you file for bankruptcy jointly, you will both be eligible to have that debt discharged.
  • Time and expense are a concern. Filing jointly can save money by cutting down on fees and other expenses, and it can also save time because you are combining two cases in one proceeding.

Can One Spouse File Bankruptcy Without The Other

Should I File Bankruptcy? I’m $32,000 in Debt.

While married couples are bound together by the vows they take, when it comes to , things are viewed a little differently. Can one spouse file bankruptcy without their partner? Or is it better to file bankruptcy together?

First off, yes, you can file bankruptcy either as an individual or with your partner. But the path you and your partner decide to take will depend heavily on your financial situation.

Recommended Reading: How Many Times Has Trump Filed Bankruptcy

Schedule An Appointment Today

Call to schedule a free consultation with one of our Miami bankruptcy lawyers today. We can begin by obtaining your credit report, evaluating your financial situation, and examining the best course of action available to you.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Set Up A Free, In-Office Consultation

Open Every Saturday Morning 8 AM to 12 PM.

One Or More Of Our Lawyers Have Received These Awards And/or Recognition

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call or to setup your free phone or video consultation.

The bankruptcy lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Also Check: Trump Declared Bankruptcy

Community Property Vs Common Law Property

Can a married person file bankruptcy without a spouse? As weve explained, this is possible, and if you go this route, your bankruptcy will not affect any separate property that your spouse owns individually. But if you have jointly-owned assets, the treatment the assets will receive in bankruptcy depends on whether you live in a common law or community property state.

If you live in a common law property state, your individual assets and your interest in any property you own jointly with your spouse are considered part of your bankruptcy estate, and the property your spouse owns in his or her name alone is normally not at risk.

However, in community property states like Texas, almost all assets acquired by either spouse during the marriage are considered community property. In other words, property acquired by either spouse during the marriage is considered equally the property of both spouses, a 50/50 split. Because both spouses own community property jointly and equally, all of it is considered property of your bankruptcy estate and all of it may be used to satisfy your debts.

This means the answer to the question can one spouse file bankruptcy without affecting the other depends on the how many of assets are community property, and if the answer is many, your bankruptcy can have a significant impact on your spouse.

Texas Is a Community Property State

RELATED ARTICLES

Popular Articles