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Spouses and Bankruptcy

If you’re married, you would assume that you and your spouse must file bankruptcy when the burden becomes too much to bear, right? Wrong! People make a common assumption that married couples are required to file bankruptcy together, but you can file it alone if you wish to do so. In such a situation, it would be best to get legal assistance from your number one bankruptcy lawyer while your significant other focuses on supplying information and essential documents.

In most cases, spouses file for bankruptcy alone to avoid incurring higher attorney fees and court costs. Besides, filing bankruptcy by one spouse alone may not necessarily protect the other non-filing spouse from the creditors. If you choose to file for bankruptcy alone, it may affect your spouse’s ability to retain their property, obligation on debts, and much more.

What Happens When A Spouse Files Bankruptcy Alone

In a marriage union, you’re likely sharing your finances with your spouse. Technically, there’s no legal requirement that requires a spouse to file for bankruptcy with their partner. But once a spouse seeks discharge of debt by filing for bankruptcy, the other party may be held accountable for paying some debts, including the medical debt and jointly owned credit cards.

So, what happens when a spouse files bankruptcy alone? Here’s what to expect.

First of all, you need to understand that by filing bankruptcy alone, the law requires:

  • A statement of the incomes of both spouses, both independently and jointly.
  • Type and value of property owned independently and jointly.
  • Bills owed individually and jointly.
  • The credit score for each spouse.

If any debts deemed as community property were incurred during the marriage, your spouse does not necessarily need to file bankruptcy with you. The other spouse will be protected when the creditors collect the debt, provided that you remain married.

When to File Bankruptcy With Your Spouse

Before marriage, people meet in totally different financial circumstances. One may have a good credit history and accumulated a lot of property before the marriage. The other spouse, on the other hand, may have a different credit score and lesser property. By filing bankruptcy alone, the debt is sorted without affecting the first spouse’s credit score.

In cases where one spouse has most of the debts under their name, it would be wise not to file jointly. Similarly, when the non-filing spouse owns a great deal of property, it would be wise to avoid dragging them into the filing process. The appropriate time to file jointly is when the spouse’s assets and belongings are mingled with the filing spouse. This helps prevent awkward situations, e.g., when creditors go for the non-filing spouse’s property to recover the debt amount.

Talk To An Experienced Attorney Today!

Marriage is a union between two people who usually share many things, including finances. However, certain circumstances require that one spouse files for bankruptcy to discharge a troubling debt. For instance, when the debt amount is too high or the other spouse is unwilling to enter the agreement. The entire process requires a reliable attorney to help navigate through the elements. For more information, be sure to visit us at https://azbankruptcysolutions.com/mesa me.

Arizona Bankruptcy and Debt Solutions
1013 S Stapley Dr
Mesa AZ 85204

Do You Qualify for Bankruptcy?

Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.