Filing for bankruptcy can be both a complex and an overwhelming process. That’s why it’s best to get help from the professionals when you file for bankruptcy. The bankruptcy lawyers at Craft Law Offices in Greenville, NC are here to answer all of your questions about bankruptcy and walk you through the process each step of the way. It is our goal to make the process as painless as possible!
One of the questions our clients often ask us is: “How does bankruptcy affect my spouse?” There is no one simple answer to this question, because it really depends on your unique financial situation. However, let’s look at some common denominators to see how bankruptcy can affect your spouse/partner:
If you are married, you can file for bankruptcy together, or one spouse can file for bankruptcy on their own without the other filing.
If you file for bankruptcy together, then you will be filing jointly, which means you will be both named under your bankruptcy petition, and it will be considered a single claim. This is usually done when a couple is named on multiple debts/loans together. If both partners are in debt, then it might be their best option to file for bankruptcy together in order to simplify the process and save money on fees.
Sometimes, only one spouse will file for bankruptcy. This is typically the case if one partner is named solely on certain assets. Say for example, only one partner is named on a mortgage, a car loan, or a student loan debt. Then, that partner may file for bankruptcy separately. When this happens, only the person filing will have the bankruptcy show up on their credit report.
Say, however, that one spouse files for bankruptcy, but the couple still has debts with both of their names attached. What happens then? In this case, the non-filing partner may still be responsible for the debt, even after their partner has filed. Again, this depends on a number of factors, including the type of bankruptcy that you file.
If you are thinking about filing for bankruptcy and you want to know if you should do this separately or jointly with your spouse, we are happy to sit down with you and go over your options.
For bankruptcy lawyers who are here to answer all of your questions about bankruptcy, give us a call at Craft Law Offices in Greenville, NC today, or visit our Facebook page.