Spouses Can File Bankruptcy Alone
By Cathy Moran, California bankruptcy lawyer on Jan 27, 2007 in General Bankruptcy Information
One of the most frequent questions asked about bankruptcy is whether spouses must file together. The answer is “no”; one can file bankruptcy without their spouse. Married folk may file a joint case: one set of papers; one filing fee, but they are not required to.
There are many reasons why it may be advantageous to file without a spouse, depending on how property is held; who is liable for the debts; and whether a bankruptcy filing would adversely affect one spouse.
The filing spouse frequently worries about the impact of bankruptcy on the non filing spouse. The law provides that each individual has a separate credit file, for credit reporting purposes. Thus a married couple’s credit worthiness is a blend of the contents of his file and her file. So a bankruptcy will affect future joint applications for credit. It should not, however, result in a bankruptcy notation in the non filer’s credit record.
Bankruptcy or no, if the spouses are jointly liable on a loan and that loan goes unpaid after the bankruptcy, it will have an impact on the non filing spouse, but it is the nonpayment rather than the other’s bankruptcy, that blots the credit record.
Good legal advice is necessary to evaluate whether there are non obvious issues that might drag the non filing spouse’s affairs into the bankruptcy court.
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