We are often asked whether married couples must file bankruptcy together. The short answer is no. Married couples are not required to file bankruptcy together. Whether you should file jointly, individually, or not at all depends on your unique financial situation.
At Levitt & Slafkes, P.C. we have helped many New Jersey couples decide the best approach. This blog will discuss the pros and cons of filing bankruptcy together with your spouse.
Do Married Couples Have to File Bankruptcy Together?
No. The U.S. Bankruptcy Code does not require that both spouses file bankruptcy together. Married couples have the option to:
- File individually;
- File jointly, or
- Have only 1 spouse file bankruptcy
When is it Beneficial for Spouses to File Jointly?
There are many factors involved in deciding whether both spouses should jointly file a Chapter 7 or Chapter 13 bankruptcy.
These are some of the benefits of both spouses filing bankruptcy together:
- Convenience: Filing bankruptcy together simplifies the process, since only one set of paperwork is required
- Saves Money: Filing together is generally less expensive than each spouse filing their own bankruptcy as there is only one filing fee, and one set of paperwork.
- Protects Both Spouses: If there are joint debts, both spouses are protected from collection efforts if they file a joint bankruptcy. If only one spouse files bankruptcy, the non-filing spouse remains liable for any joint debts.
- Both Spouses Have Debt: If both spouses are struggling with debt, filing together can eliminate all of the debt and give you a fresh start as a couple.
When Is It Beneficial For Only One Spouse To File Bankruptcy?
In some situations, it might be best for only one spouse to file bankruptcy, or for each spouse to file their own individual bankruptcy. Here are some of the factors to consider in making the decision.
- Only One Spouse Has Debt: If the majority of the debt is only in one spouse’s name, it might be best if only the spouse with the debt files bankruptcy.
- Each Spouse Has Separate Assets: If one spouse has significant property or assets that are only in their name, filing jointly might put the assets of that spouse at risk.
- Preserving Individual Credit: If only one spouse has substantial debt, filing separately allows the non-filing spouse to maintain a better credit profile, since their debts wouldn’t be included in the bankruptcy.
Contact Levitt & Slafkes For a Free Consultation
If you have any questions about whether to jointly file bankruptcy with your spouse, you should talk to the experienced bankruptcy attorneys at Levitt & Slafkes, P.C.
We will:
- Evaluate your debts and income
- Help you understand your legal options
- Guide you through the entire bankruptcy process
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.