Can One Spouse File for Bankruptcy?

Marriage beyond been a romantic and spiritual union, is also a financial union. If you have been married for a while, own property together, and share debts like home mortgage and joint credit cards, then both of you can be sued if you are in default.

Couples often worry that their marriage, may be affected if they opt for filing bankruptcy, as it will influence the finances shared or their spouse’s credit, which could create problems that leads into fighting and sometimes divorce. However, for those couples feeling financially distressed,  bankruptcy may be the option, before thinking about divorce as an option.

You may be asking yourself: can one spouse file for bankruptcy?

Yes, If the debts were acquired before marriage or without the participation of the other spouse, only a single spouse truly qualifies for bankruptcy. Also, while many assets can be owned jointly in a marriage, both spouses don’t necessarily need to file; however, the situation gets a bit complex and there are some factors that must be considered before moving forward.

Filing bankruptcy without your spouse.

In Florida, a married individual considering filing bankruptcy without the spouse can choose between Chapter 7 and Chapter 13 bankruptcy depending on which chapter he/she qualifies. A few aspects to consider are:

• The court considers both spouses income in both chapters.
• If both incomes exceed the income level set by law, you may noy qualify for Chapter 7 bankruptcy.
• If your spouse is offered a debt relief  in Chapter 13, the monthly payment plan will depend on both spouses’ income.

One spouse’s bankruptcy affects the other depending on how the assets are owned and if both spouses are in the debts, for what the assets can be liquidated to pay debts.  If you hold debts jointly and only one spouse files, only the debts of the spouse filing will be discharged, for what the non-filing spouse will have to pay.

The advantage of one spouse filing bankruptcy without the other spouse is that only the credit of spouse filing will be affected.

If you are under financial distress and considering to file bankruptcy, but you aren’t sure if filing together or without your spouse, we highly recommend to contact a bankruptcy attorney who can study your case with you and explain which will benefit you the most. Working with an experienced bankruptcy attorney is your best way to start any process.