It is a common misconception that if one spouse files for bankruptcy, the other must also file. This is not correct. One spouse is permitted to file without the other. However, in most cases the income of both spouse’s incomes is counted toward eligibility for a Chapter 7 bankruptcy that requires a “means test” to qualify. Furthermore, if only one spouse files bankruptcy, the non-filing spouse is still on the hook for his or her own debts as well as any joint debts.
Another common misconception is that if one spouse files for bankruptcy, the credit of the other spouse will be adversely affected by that filing. It is not the filing of the bankruptcy or the discharge of debts that adversely affects a non-filing spouse’s credit. It is the nonpayment of joint debts and other obligations that could affect their credit. If all debts in the non-filing spouse’s names are timely paid, that spouse’s credit should not be adversely impacted by the bankruptcy of their spouse.
If you have any questions about whether to file with your spouse or separately, you should talk to the experienced bankruptcy attorneys at Levitt & Slafkes, P.C. who can answer your questions regarding bankruptcy issues. Contact us today so one of our attorneys can evaluate your case and discuss the best options available to you. Call us at 973-323-2953, or contact us online to schedule a free consultation.
We are proudly designated as a debt relief agency by an act of Congress. We have proudly assisted consumers in filing for Bankruptcy relief for over 30 years.
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