INDIVIDUAL VS JOINT BANKRUPTCY

Regardless of whether you file a Chapter 7 bankruptcy or a Chapter 13, if you are a married couple, joint bankruptcy is usually the best option. Some advantages to filing jointly include:

• Costs: By filing bankruptcy jointly, you only pay court fees once. If you file separately, you will have to pay fees twice.
• Shared Debt: If you share debt as a married couple, it is best to have loans discharged in both your names. If, for example, you are both co-borrowers on an auto loan and only one of you files for bankruptcy, the lender can still seek payment from the spouse who did not file.
• Things to Consider: There are many things to consider when making the decision to file bankruptcy if you are married. If you decide to file bankruptcy individually, your spouse will still be connected to the bankruptcy. The Court will base decisions on both your income and debt. It is generally advisable to file joint bankruptcy unless combining income renders you ineligible for Chapter 7 bankruptcy.

When you attend your initial consultation with us, it is best to bring all financial information for both spouses. Even if you are considering filing bankruptcy individually, our personal and joint bankruptcy lawyers will want to examine all of your information before advising you on the best option for debt relief through bankruptcy.