BANKRUPTCY LAWYER

The experience to handle your
legal matter  with the utmost importance.

Joint Marital Debt

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.    

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