At Walker & Walker, we understand that the decision to file for bankruptcy is deeply personal, especially when you’re married. One of the most common questions we hear is whether filing for bankruptcy will affect a spouse. The answer is reassuring: bankruptcy laws provide flexibility, allowing one spouse to file without directly impacting the other. Let’s explore how this works and what you should know to make the best decision for your family’s financial future.
Individual vs. Joint Bankruptcy Filings
Married couples can choose to file bankruptcy jointly or have just one spouse file. Here’s how each option works:
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Individual Filing:
When only one spouse files for bankruptcy, the other spouse is not affected.- Bankruptcy erases only the debts of the person who filed.
- It only impacts the assets of the person who filed.
- The bankruptcy won’t appear on the credit report of the non-filing spouse and won’t affect their personal debts or assets.
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Joint Filing:
If both spouses have significant debts—especially joint debts—it often makes sense to file together. A joint case can simplify the process and ensure both parties benefit from debt relief.
The Means Test and Your Spouse’s Income
Where things can get tricky is with the Means Test. This law determines whether you qualify for Chapter 7 (complete debt discharge) or Chapter 13 (repayment plan).
- The Means Test considers the combined income of both spouses, even if only one is filing for bankruptcy.
- A high-earning spouse could mean the filing spouse only qualifies for Chapter 13. However, an experienced bankruptcy attorney can sometimes navigate this and still help you qualify for Chapter 7.
How to Decide Whether to File Jointly or Individually
Deciding whether one or both spouses should file bankruptcy often depends on who owes the debts.
- If only one spouse owes the majority of the debts, it’s usually best for just that spouse to file.
- If both spouses share significant debts, filing a joint case is typically the most efficient option.
If you’re unsure who owes which debts, don’t worry—we’re here to help. At Walker & Walker, we offer free consultations where we can:
- Pull a credit report to see which spouse owes specific debts.
- Analyze your financial situation to determine whether an individual or joint filing is best.
Protect Your Financial Future
Filing bankruptcy can be a powerful tool to reset your financial life without dragging your spouse into the process. If you want to file bankruptcy without affecting your spouse, we’re here to guide you every step of the way.
Call us today at 612-824-4357 for a free consultation with a Minnesota attorney. We also offer affordable payment plans starting at $85 every two weeks, with no upfront costs.
Take the first step toward financial freedom—call us today!
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