If I’m Married, Does my Spouse have to File for Bankruptcy as Well?

filing bankruptcyCan you File for Bankruptcy Individually?

Yes, you can file for bankruptcy individually and leave your spouse out of the process. However, your spouse will still be affected by the bankruptcy as they then become responsible for all joint debts. They’re less likely to have their credit score affected, but it’s not unusual for your discharged debt to show up on their credit report. The best answer to this question is to discuss the pros and cons to a married filing single bankruptcy attorney Taylorsville.

Are There Benefits to Filing Bankruptcy Jointly?

There are benefits to filing a joint bankruptcy that come in the form of a doubling of the exemption amounts and the clearing of debts for both parties. It can also be beneficial to file jointly for a Chapter 13 bankruptcy. But if there are plans for the future that requires one spouse to have good credit, filing jointly can become problematic. The best way to get answers to this question is to talk to an Utah bankruptcy attorney to learn more about the options, the potential outcomes, and which chapter of bankruptcy makes the most sense for your personal situation.

What You Need to Consider When Filing Joint or Individual Bankruptcy

Debts taken out jointly become “owned” by the non-filing spouse after the filing spouse initiates bankruptcy. Creditors will go after the non-filing spouse to get the debts repaid which means the obnoxious collection activity won’t stop. Bankruptcy also looks at the combined income of both spouses. If the income is high enough, the spouse filing for bankruptcy may get put into a Chapter 13 repayment plan instead of a Chapter 7. This is another reason why it’s a good idea to talk to a bankruptcy attorney Taylorsville Utah.

How an Attorney Can Help You File for Bankruptcy

A bankruptcy attorney Taylorsville Utah can help you understand the implications of your decision to file bankruptcy as an individual. Get in touch with Alta Legal today to set up a consultation and have your questions about filing bankruptcy as an individual or jointly.

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