Can One Spouse File Bankruptcy?
In short, the answer is yes.
Although many things, such as a house, a family, a car, are shared in a marriage, both parties in a marriage need not file for bankruptcy.
If one party gets into financial trouble and needs help with debt relief, the other spouse doesn’t need to file — or risk it appearing on his or her credit score.
Which Bankruptcy Is Better For A Single Bankruptcy Filing?
Chapter 7 and Chapter 13 bankruptcy are very different. If you plan to file without your spouse, which one is best for you — and which one you are eligible to file — will depend on the following:
- A spouse who wishes to file a Chapter 7 bankruptcy must include the other spouse’s income. Individuals filing Chapter 7 bankruptcy must meet certain income requirements based on where they live. If together, they exceed the income level, they cannot file a Chapter 7 or Chapter 13, alternately, may be an option.
- If a spouse wishes to file for a Chapter 13 bankruptcy, a bankruptcy trustee will mandate a monthly payment plan. However, the nonfiling spouse’s income will be considered when determining the repayment amount and schedule.
The rules regarding married individuals who opt to file bankruptcy alone are complex. Jointly owned property or assets, for instance, will be examined and potentially seized to pay debts. Each situation, however, is handled on a case-by-case basis.
Alternatives To Filing Bankruptcy
It’s understandable that individuals are hesitant about filing for bankruptcy either together or alone. Taking out a second mortgage, consolidating credit card debt to better a financial predicament are options — but both tend to be more expensive or counterproductive in the long run.
If you have concerns about filing for bankruptcy or need answers to questions pertaining to your situation, reach out to our team of bankruptcy attorneys at Kingcade Garcia McMaken for guidance. We have helped countless individuals throughout Miami, Florida, in different scenarios find the debt relief they desperately need.
Schedule An Appointment Today
Call 305-285-9100 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.
You can also send us an email.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.