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Going bankrupt as an individual is already hard enough. But drowning in debt as a married couple, especially when you have children, is another level of hardship.
First, know that it doesn’t have to be like this forever. We’ve helped hundreds of couples get out of debt through Chapter 13 and Chapter 7 bankruptcy in Raleigh, NC. With a Weik bankruptcy attorney by your side, it’s possible for you, too.
In this article, we’ll be talking about joint bankruptcy petitions, and why or why not it could be the right decision for you.
What are joint bankruptcy petitions for married couples?
As the name suggests, a joint bankruptcy petition allows both spouses to file for relief from debt at the same time.
While it can seem like the natural choice for a married couple, keep in mind that there are benefits and drawbacks to this decision. Our bankruptcy lawyers in Raleigh NC would be happy to discuss this in-depth with you, but for now, here’s a quick look at both:
Pros:
- You only have to file once. This saves you time and money not having to go through the bankruptcy process multiple times for each spouse.
- Both spouses are protected under federal law during this period of financial difficulty. No creditor is allowed to pursue one spouse without pursuing both spouses simultaneously, so you don’t have to worry about losing your spouse’s income or assets.
- Under Chapter 13, both spouses will be accountable for any joint debt, which means that both are responsible for paying back the debt in full after bankruptcy is over.
This can make the burden lighter as you work together through the bankruptcy process.
Cons:
- If one spouse makes significantly more than the other (or has higher debt), the spouse who makes less (or has lower debt) will be at a disadvantage.
- Both spouses are responsible for all joint debts, which means that if one spouse doesn’t pay their share of the repayment plan during bankruptcy, neither can benefit from it.
- Joint filing may not be right for you if your spouse has serious debt problems.
Exemptions and Joint Bankruptcy Petitions
Bankruptcy exemptions allow you to keep some of your assets and property, even if you file for bankruptcy.
Filing separately means that each spouse is entitled to their own exemptions. Depending on your situation, you may be able to keep more of what you have.
Under a joint filing, however, it depends on both your state’s exemptions, and whether that state allows petitioners to use federal exemptions.
Additionally, you can also take advantage of a double exemption to a specific asset if you and your spouse co-own it (aka it’s classified as marital property). For example, you can claim double the homestead exemption for your house if the title lists both of you.
Let Weik Law Office Simplify Bankruptcy for You
As you can see, joint bankruptcy petitions can get pretty complicated. In addition, filing for Chapter 13 or Chapter 7 bankruptcy as a married couple in Raleigh usually involves other people too, such as your beloved children.
Because of this, you want to make sure you take the correct steps throughout the entire process. Weik Law’s expert bankruptcy lawyers in Raleigh, NC are ready to guide you through each step, beginning with a conversation about your current debt and circumstances.
Call Weik Bankruptcy Attorney today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.