Be Prepared To Document Marital Adjustment Deductions
If marital adjustment deductions make the difference between passing or failing the means test, your bankruptcy trustee will want to see documentation showing that your non-filing spouse pays those expenses. Be prepared to provide it in support of any marital adjustment deductions claimed on the means test.
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Effect On Your Credit
If you file a joint bankruptcy, it will be reflected on both of your credit reports. Even though bankruptcy has a negative effect on your credit initially, most people’s credit scores tend to increase shortly after the bankruptcy. However, if you have good credit and your spouse needs to file bankruptcy primarily for his or her own debts, then it wouldn’t be in your best interest to file jointly and take the hit to your credit.
What Assets Are Part Of The Bankruptcy Estate In California
California is a community property state, which means that barring an agreement to the contrary, property acquired during the marriage normally belongs to both spouses no matter whose name is on the title. That means whether you file a bankruptcy jointly with your spouse or you file individually, all that community property is part of your bankruptcy estate. When you file individually in a community property state like California, a lot more property becomes part of the bankruptcy estate and subject to bankruptcy law than would be the case if you filed individually in a common law state. ;Your California bankruptcy lawyer can explain what property can be protected by bankruptcy exemptions.
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Filing Bankruptcy In Arizona And How It Affects Your Spouse
Question: How Will Filing Bankruptcy Affect My Spouse?
Answer: Filing bankruptcy in Arizona can be filed by one or both married partners. If you are considering filing for bankruptcy in Phoenix, Tucson or anywhere in Arizona you should contact an experienced bankruptcy attorney. It is entirely legal for a person to file for bankruptcy in Arizona without his or her spouse.
When one person files for bankruptcy in Arizona, the other is not automatically pulled into bankruptcy just because they are married. On the other hand, though, filing bankruptcy in Arizona can sometimes leave the non-filing spouse unprotected as he or she may owe shared debts without the protection of a bankruptcy filing.
There are numerous ramifications to consider when deciding who should file for bankruptcy in Arizona. Contact The My AZ Lawyers, set up a free bankruptcy consultation , and find out how filing for bankruptcy will effect your spouse in Phoenix, Mesa, Glendale, and Tucson, Arizona.
Question: If one spouse decides to file for bankruptcy, does the other have to file too?
Answer: In a wordNO. An Arizona bankruptcy can be filed by one spouse and not the other. Depending on if you are filing a Chapter 13 or Chapter 7 bankruptcy, you may want to seek the advice of a Bankruptcy Attorney in Phoenix, Arizona.
Question: Can I file for bankruptcy without my spouse finding out?
Question: How is my spouse affected if I file for bankruptcy in Arizona alone?
Joint Debts In Chapter 7
In a Chapter 7 bankruptcy case filed by both spouses together, eligible unsecured debts can be discharged as to both parties. That means that once the debt is discharged, neither spouse has a legal obligation to pay it. When only one spouse files, this plays out differently. The filing spouse may be released from the legal obligation to pay a debt, but the non-filing spouse is not. This means that one spouse could file bankruptcy and include large joint debts, and when the discharge order was entered, the non-filing spouse would still be responsible for 100% of that debt. From a practical standpoint, the household obligations would not have changed–at least, not as to joint debts.;
Unless the bankruptcy filing wipes out enough other debt to free up household funds to make those joint debt payments, the couple may find their situation does not improve much. A joint filing, if it is an option, could eliminate that debt for both parties and give the household a fresh start.;
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The Chapter 7 Means Test
If you are filing for Chapter 7 bankruptcy and you share a household with your spouse, his or her income will be considered in the means test calculation. This can present a problem for a bankruptcy filer whose spouse has significant income. Even when the spouses income is relatively small, it can tip the household income over the state median income line or shift the disposable income calculation.;
However, the Chapter 7 means test allows for an adjustment to ensure that the non-filing spouses income is counted only to the extent that such income goes to support the household. The means test form provides for adjustments based on income the non-filing spouse uses to pay separate obligations, such as individual tax debt and the support of separate children. In other words, depending on the expenses in play, it is possible that only part of the non-filing spouses income will be considered when determining whether the filing spouse is income-eligible for Chapter 7.
Can One Spouse Declare Bankruptcy In Georgia
Yes, married couples can file for bankruptcy jointly or separately. Typically, individuals will file either a Chapter 7 or a Chapter 13 bankruptcy in Georgia. When an individual declares bankruptcy separately from their spouse, they are not a co-debtor on any of the debts, they will not be listed on the petition. If the non-filing spouse is a co-debtor on any of the filing spouses debt, the non-filing spouses name and address will need to be listed in the bankruptcy petition. However, with both a Chapter 7 and Chapter 13 filing, the individual will need to disclose all household income, including the spouses income.
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Can I File For Bankruptcy Without My Spouse
Many individuals are concerned that filing for bankruptcy;without their spouse could affect their spouses credit score or finances and the property they share, and ultimately end their marriage. This post is to address some questions for people who are considering filing for bankruptcy without their spouse.
When Does Filing Bankruptcy Without Your Spouse Make Sense
There are times when it makes sense to file bankruptcy without your spouse:
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the debts are only in your name
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you signed a prenuptial agreement and keep all finances separate
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your spouse file bankruptcy in the past and isnât yet eligible for a discharge
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you want to preserve their ability to file bankruptcy in the future, if necessary.
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Have Additional Questions Contact The Bankruptcy Team At Burrow & Associates
If you are considering bankruptcy and would like to know whether you should file individually or jointly with your spouse, please reach out to our bankruptcy team. We can answer any questions you have and help determine the best course of action for you and your family. You can reach us at 323-2394 or;via our website;to set up a free consultation.
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Is My Spouse Responsible For My Debts If I File Bankruptcy Without My Spouse
In the case of joint debts, an individual bankruptcy filing does not protect the other partner. Individual bankruptcy filing only affects personal liability.; In this case, creditors would still be able to pursue the other spouse to recoup any money owed.
However, creditors cannot pursue collections on debts from a spouse when the debt is in the name of the person filing for bankruptcy.
If you live in a community property state such as Arizona or Texas, creditors can still go after your spouses separate property to settle part of the debts after bankruptcy.; The law, in this case, assumes that all property acquired during marriage is community property.
Will Anyone Notify My Spouses Employer
It is illegal for a creditor to notify your employer or your spouses employer, or any family members, landlords, etc. in an attempt to collect a debt. Further, the bankruptcy court only sends notices to people listed on the bankruptcy, including the debtors, the creditors, and any co-signers. As long as your husbands or wifes employer doesnt fall into those categories, there is no reason the employer should find out about the bankruptcy.
One exception to this rule would occur if you choose to have your Chapter 13 bankruptcy payment pulled directly from your spouses paycheck. A paycheck garnishment is the most common way to make this payment, and the filing spouse sometimes between jobs, or has some other circumstance that makes pulling the payment from the non-filing husband or wifes paycheck the most attractive option.
If you have any other questions about this topic, please call our Fort Mitchell, Kentucky office at . We are one of the largest bankruptcy filers in Northern Kentucky and helped over 3,000 clients. Were Working Hard for the Working Class, and we want to help you!
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What Happens If Someone Files For A Bankruptcy In The Middle Of A Divorce
In most instances, divorce actions are not subject to the automatic stay which often comes out of bankruptcy filings. However, there can be situations where the automatic stay may impact the proceedings in a divorce. Depending on the circumstances, the bankruptcy could temporarily forestall progress in the divorce action.
When Assets Are Jointly Held
At the same time, many debts in a marriage are jointly held. If you file income taxes jointly, then both of you are on the hook for paying the tax. If the couple jointly owns assets, a creditor may elect to go after the assets of the nonbankrupt partner.
There are many different scenarios that can occur when one partner in a marriage files for bankruptcy, including joint bankruptcy. We have an open door policy at McBride Law Firm if you have a question about bankruptcy, one of our lawyers will make time to talk to you. Or, call us at .
Talk to the debt relief attorneys at McBride Law Firm, Alexandria, Louisiana.
We can answer all your questions about bankruptcy.
Bankruptcy Questions
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The Basics Of Chapter 13 Bankruptcy
Chapter 13 bankruptcy functions as a reorganization of debts and requires a 3 to 5 year repayment plan. The filer must send the monthly plan payment to the bankruptcy trustee, who will then pay allowed creditor claims according to the Chapter 13 plan.
To file Chapter 13 bankruptcy you must have regular income thatâs high enough to cover your monthly living expenses and your monthly plan payment. Mortgage arrears, missed car payments, non-dischargeable tax debts, and back spousal or child support payments can be paid off in the plan. Itâs possible to pay off debts secured by personal property in the plan, too, such as paying off a car loan. All or a portion of your unsecured debts, including credit card debt, will be paid by your Chapter 13 plan. After all plan payments are made, the bankruptcy court will issue a discharge order erasing any remaining dischargeable debt.
Advising Spouses In Bankruptcy Filing Procedures
Both spouses do not have to file for bankruptcy if one spouse files. In some situations it might be in both spouses’ best interests for both to file, but an experienced bankruptcy lawyer should be consulted to help you understand the benefits and the consequences of a dual filing.
At Redman Ludwig, P.C., we help people in Indianapolis and throughout central Indiana determine the most appropriate course of action for their particular financial situation. It makes good financial sense to evaluate your circumstances and abilities to improve your credit considering all your bankruptcy options and other debt relief alternatives.
Our legal team is concerned for your well-being, and we work diligently to help you pursue the resolution that best fits your needs and goals. With more than 60 years of collective experience, we will guide you to informed decisions and provide you with personalized service.
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Can One Spouse File For Bankruptcywithout The Other
There are situations in which individual debt may cause individuals to wonder, Can one spouse file for bankruptcy? Whether it is because debts were acquired before marriage or without the participation of the other spouse, there are times when only a single spouse truly qualifies for bankruptcy. But filers may worry that filing individually may negatively impact their spouse anyway.
So, can one spouse file for bankruptcy? The short answer is yes. However, the matter is much more complicated than most people might imagine. Several factors determine whether filing individually is even an available option for some debtors, as well as how successful the measure will be. These factors include but arent limited to:
- Do you and your spouse own property together?
- What are the laws of your state regarding that shared property?
- Do you share debts with your spouse or are your debts individually incurred?
- Are you planning to file for Chapter 7 bankruptcy or Chapter 13?
Lets take a closer look at how these factors impact a debtors ability to find financial relief through bankruptcy without dragging their spouse along for the ride.
Does Single Spouse Bankruptcy Change The Nature Of Joint Or Co
So you open a new account with one of the credit card companies in your name and do not get a supplementary card for your spouse. In that situation, your partner does not get a card for your account. Therefore, your partner also did not consent to be collectively responsible with you on that credit card. If you fail to make a payment on that bank card, they cannot sue your spouse.
If they cant sue your partner, they cannot get a judgment against him or her. If they cant get a judgment, then they cannot garnish your partners wages. They can not take your partners different bank account or different assets. They can try to collect the credit card debt from the individual that consented to be liable for it. This does not change because of a marital or common-law relationship. Therefore, if you file a personal assignment in bankruptcy, your non-filing spouses separate property and income cannot be taken by either the Court or your Trustee.
If unsecured creditors report a joint debt in the single spouse bankruptcy estate on that persons credit record, that does not influence the non-filing partners credit history. However, for any joint debt, or a debt of the filing spouse that is guaranteed by the non-filing spouse, that is a different story. The non-filing spouse must live up to his or her obligations, which includes the responsibility for that joint or guaranteed debt after the partner files for bankruptcy.
single spouse bankruptcy
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How Does Bankruptcy Affect My Spouse
If a husband files bankruptcy without his wife, only the husbands debts are discharged. If the debts are held jointly, the non-filing wife will still owe even after one spouse has filed bankruptcy.
The bankruptcy filing will appear on the husbands credit report, but should not appear on the wifes. If a non-filing spouse receives an adverse rating on their credit score as a result of their spouses bankruptcy, the matter should be addressed immediately with the credit reporting agencies.;A non-filing spouse should not have their as a result of their husband or wife filing for bankruptcy.
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Single Spouse Bankruptcy: Bankruptcy And The Non
Now what we have discussed are simply generalities in a single spouse bankruptcy. There are situations that do not fit neatly within these rules but thats why you need an experienced Trustee to help review your situation and provide you with information on legal effects when only one spouse files for bankruptcy.
Do you have way too much debt? Prior to you getting to the phase where you cant make ends meet and your credit report looks awful, reach out to a licensed insolvency trustee . In fact, if you understand that you cant pay your separate debts, contact us.
We understand the pain and stress excessive financial debt can trigger. We can aid you to get rid of that discomfort as well as address your financial affairs and problems by offering prompt action and the ideal plan. We will be able to advise you on the legal effects when only one spouse files for bankruptcy or a consumer proposal.
Call Ira Smith Trustee & Receiver Inc. today.
Make an appointment with one of the Ira Smith Team for a free, no-obligation consultation and you can be on your way to enjoying a carefree life Starting Over, Starting Now.
Give us a call today so that we can help you get back to a stress and pain-free life, Starting Over, Starting Now.
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