CAN JUST ONE SPOUSE FILE BANKRUPTCY?
Both spouses do not always have to file for bankruptcy together. Every situation is unique. I will evaluate your personal situation to determine whether it is more beneficial to file individually or jointly. Here are some advantages and disadvantages:
The Advantages of One Spouse Filing for Bankruptcy:
- Unsecured debts are discharged for the individual who is filing
- Discretionary income increases for the couple
- Asset protection can be increased in certain situations
- Your credit score might improve more rapidly
- The non-filing spouse’s expected financial award (e.g., inheritance, property settlement or personal injury settlement) will remain protected
The Disadvantages of One Spouse Filing for Bankruptcy:
- The non-filing spouse will still be responsible for paying joint marital debt.
- Dual filing fees are less costly than if each spouse were to file separate bankruptcies (e.g., the other spouse files for bankruptcy on a different date).
I AM CONTEMPLATING DIVORCE AND WE HAVE A LOT OF DEBT
It may be beneficial to eliminate debts in bankruptcy prior to the divorce rather than trying to apportion debts and running up a large divorce legal bill by arguing over who will pay which debts.