Should Bankruptcy Be Filed Jointly?

In most circumstances it is better for both a husband and wife to file jointly for bankruptcy.  The filing fees for a joint filing are the same as an individual filing and the married couple gets the benefit of having the debt of both spouses dismissed, instead of just one.  It is also very common that spouses share debt ownership on major purchases, such as homes and automobiles.  Spouses that do not file, could remain liable as a co-debtor for a portion of their husband’s/wife’s debut.  

There are some exceptions to this general guideline in which it is better for an individual to file separately.  Some examples can be related to timelines (if the other spouse has previously filed for bankruptcy and not enough time has passed)and property protection (exemptions).

To find out if a joint bankruptcy filing would be right for your spouse and you, it is recommended to set up a consultation with a local bankruptcy attorney.

Chapter 13 Bankruptcy Payment Plans

Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy offers an individual the opportunity to pay back a portion of, or all of, their creditors through a payment plan agreed upon by the individual, the attorney, and the bankruptcy Trustee.  Payment plans are constructed by the individual and the attorney based upon the filer’s income level, monthly budget, and level of debt to be repaid.  It should also be noted that Chapter 13 bankruptcies are often viewed as more favorable by future creditors as it shows a willingness to pay back a portion of one’s obligations.  

To find out if a Chapter 13 bankruptcy would be right for your circumstances, it is recommended to set up a consultation with a local bankruptcy attorney.