If you are married and you want to file bankruptcy individually through a Ford Heights bankruptcy attorney, you can do so. However, in order for you to file a bankruptcy as a married unit for just one person, the bankruptcy court must take into consideration your income and your expenses for both you and your spouse so even though your spouse is not filing bankruptcy; the bankruptcy court has to take into consideration their income and their expenses.
So if one spouse has lost their job or has had a medical problem or they had to leave their job and their income is significantly been lowered, one person in the marriage might want to file Chapter 7 bankruptcy but the other person doesn’t want to because they may have good credit or they may not want to file bankruptcy with their spouse. In that regard, one spouse can file and sometimes it is very beneficial for just one spouse to file. Some other times, it’s not beneficial. In some circumstances it is better for both of them to file. That is really something that is found out through the consultation with your attorney and it’s a case-by-case scenario and the attorney would really make the judgment call on what is the best situation for the clients.
So when filing for a bankruptcy with one person with a non-filing spouse, you have to take into consideration their income. So if your spouse has a very, very high income, there is a chance that you will not qualify for a Chapter 7 bankruptcy but you might qualify if you file Chapter 13 bankruptcy. The other thing is if you are filing solely for yourself and not with your spouse, then you also have to take into consideration your spouse’s expenses even if it’s an expense only for the spouse. For instance, if he is only paying his car, his car in his own name meaning that the title and the payments and everything is in his own name, he still has to put in the bankruptcy petition that he spends $300 towards his car as an expense that can be taken.
The other thing is if your spouse is not filing, you do not have to disclose his debt. The only person who we have to disclose their debt for is the person filing the bankruptcy petition. So if you decide to file alone and you have a spouse, only your debt is taken into consideration in bankruptcy. Some issues arise where there is a joint debt with your spouse. If that happens, your portion of the debt would be discharged. However, it does not discharge anything from your spouse’s interests in the debt.
One quick note, the discharge is what you are looking for in a bankruptcy and that is a legal term meaning that the debtor is no longer personally liable for the debt that was incurred to the creditor. So personal liability means that you would be responsible for paying back the debt. So essentially the discharge is equal to an elimination of your debt. So a lot of people do have the opportunity to file alone and a lot of people do and it’s a great tool for those people who are in a bad situation and they need to be stress free from the debt that they have incurred due to many reasons. And they can do so without harming the credit of the spouse.
The big issue is they don’t want their spouse to be associated with bankruptcy claim. If you file solely on your own, your spouse will not be associated with your bankruptcy. We will not know the spouses debts. The only thing we will need to know is the spouses income and the spouses expenses as a whole as a married couple unit.