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Married couples in Raleigh have two options when it comes to declaring bankruptcy. They may file individually or jointly. Individual filing is ideal if only one spouse needs to settle debt. This is also beneficial for the other partner since it won’t affect their credit whatsoever. Joint filing, on the other hand, allows married couples to complete a bankruptcy in just one convenient proceeding. That means both spouses can discharge their debt at less costs than filing separately.
Each has its own merit and accomplishes the objective of wiping out debt, but the best solution for you would depend on several factors. Your bankruptcy lawyer may urge you to consider these before making a decision.
Assets and Properties
Ownership of some assets change when you get married, according to the laws in effect in your state. Some properties can be owned equally by both spouses regardless of who is on the title, while others follow the rules of equitable distribution. Before filing for bankruptcy, especially Chapter 7 (otherwise known as liquidation bankruptcy), it’s crucial to know which properties will be included if you file jointly or individually. Carefully evaluate how assets are held beforehand so you can take steps to protect them if need be.
Dischargeable Debt
Along with assets and properties, thoroughly examine which debts are dischargeable or not in the type of bankruptcy you are choosing. It may be wiser to file jointly if most of your debt is considered “joint debt.” Joint filing may also be able to wipe out the individual debt of both spouses. If your spouse has more individual debt, and there is little or no joint debt between the two of you, letting them file individually may be the better option. This way, the non-filing spouse can declare bankruptcy later on if necessary.
Expenses and Time
One clear advantage of filing for bankruptcy with your spouse is that it prevents needlessly spending money on two different proceedings. You can both just hire one lawyer from a reputable practice since you share most assets and debt either way. The appointed trustee can work on your case faster since he or she only has to go through one set of documents and you can show up to hearings together to save time. You also don’t have to pay double in court filing fees and attorney fees if you decide to go through with it.
Debt relief for married couples is easier to achieve if both spouses work closely with their attorney. They can help you navigate through the complexities of your case to arrive at the best solution. Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our professionals.
Sources:
Filing Bankruptcy Without Your Spouse: What Happens to Debts & Property?, NOLO.com
Can I File Bankruptcy Without My Spouse?, NatlBankruptcy.com