Bankruptcy Lawyer | Do I File Single or With My Spouse?
Bankruptcy Lawyer . Considering bankruptcy is a situation that could bring about many questions. One of the main questions married couples may be asking is, should I choose to file a single or a joint bankruptcy petition?
Filing jointly means that combined debts and property will be included in the bankruptcy. In many cases, joint filing is a good decision. There are some situations, though, where you can benefit from filing alone. As you make your decision as to whether to file for bankruptcy as a single or joint filer and what will be most beneficial in your situation, the following information should be considered. But contact a bankruptcy lawyer before deciding.
Types of Dischargeable Debts
One of the main things to consider when making the decision whether to file joint or single is the type of debts you want to have discharged.
Another thing to consider is any property owned by you and your spouse. It is also important to consider exemptions, which if you have enough (individually or together), can protect your property.
Joint Petition – Filing a joint bankruptcy includes all property and assets owned by you and your spouse, whether it is separate or joint property.
Single Petition – Your spouse’s separate property is not a part of your case. You can protect his or her property and assets by filing alone, especially if they have quite a bit of nonexempt separate property.
Special Considerations: Double exemptions are allowed by some states in a joint bankruptcy, while some states do not allow it. If your state is one that doesn’t allow this, by filing two single petitions, you might be able to protect more property. Community property states consider all assets to be joint no matter if one spouse or both have their name on the title. An individual filing will not protect your spouse’s individual property or debts.
Costs
Filing bankruptcy requires paying the court a filing fee. In addition you have to consider fees from a bankruptcy lawyer. Filing jointly, you and your spouse are able to save a large portion of the costs versus filing separately. The court fees, whether filing together or individually are the same. Also, an attorney’s fees for a joint bankruptcy will be less than two single cases.
Convenience
The court and the bankruptcy lawyer both require many documents pertaining to your finances. Also, attending at least one hearing is required. Filing jointly means that there will just be one hearing, as well as one set of financial documents. Joint filing is typically more convenient than the both of you filing single petitions.
Credit Reports
Joint Petition – Filing bankruptcy together will affect both spouses credit reports negatively. The scores, while initially negative, tend to increase not too long after the discharge.
Single Petition – Filing separately will only affect the filer’s credit. For instance, if your spouse’s credit is good and you want to file bankruptcy for mainly your debts, there is no reason to damage his or her credit rating.
In conclusion, there are many factors to consider as you make your choice to file bankruptcy as a single or joint filer. Use what you learned here to assist in your decision making and consult with an experienced, local bankruptcy lawyer – startfresh