If You're Married but Only One of You Are in Debt, do Both Have to File Bankruptcy?

If you are married and need to file bankruptcy protection, does your spouse have to be included? The quick answer is no you do not both have to file bankruptcy together if you are married. You can file individually without bringing your spouse into the equation. Having said that, bankruptcy is a complicated beast and it is crucial to consult with a bankruptcy attorney such as Law Offices of John T. Orcutt to discuss your specific situation and options. We can help you understand the pros and cons of each option and guide you towards the best decision for your financial future.

Things to Consider:

• Individual Filing: One spouse can file for bankruptcy individually without the other spouse being involved. This is common if only one spouse has significant debt in their name alone. The non-filing spouse's credit will not be affected directly by the bankruptcy filing.
• Joint Filing: Both spouses can file for bankruptcy jointly. This may be beneficial if both have significant debt and want to address it together. Joint filing can also potentially save on legal fees and court costs compared to filing separately.
• Impact on Joint Debts: If you have joint debts, even if only one spouse files for bankruptcy, creditors can still pursue the non-filing spouse for the full amount of the debt.
• Income and Assets Consideration: When one spouse files for bankruptcy, the court will still consider the household income and assets. This means the non-filing spouse's income and assets may be taken into account to determine eligibility and the repayment plan.
• Community Property States: If you live in a community property state, debts incurred by either spouse during the marriage are considered community debts, and both spouses’ assets could be affected by one spouse’s bankruptcy filing.

It's crucial to consult with a bankruptcy attorney like the [sk-lawfirm] to discuss your specific situation. They can help you understand the pros and cons of each option and guide you towards the best decision for your financial future.