Married couples can file jointly for bankruptcy or one spouse can file separately; which option is better depends on your debts, assets, state law, and more. This decision is important: It may affect how much of your debt is discharged and how much of your property you get to keep (in Chapter 7 bankruptcy).

Can you have a joint bankruptcy?

If you’re a couple, and both want to go bankrupt, you must petition for bankruptcy individually. Unless you and your spouse or partner are also business partners, you cannot apply for joint bankruptcy. This means that you must submit two sets of forms and pay two lots of bankruptcy fees.

Can a single spouse file bankruptcy for joint debts?

However, in states, that follow community property law, then a single spouse bankruptcy for joint debts may be advantageous, in some situations. How Will Filing Bankruptcy Affect My Spouse? If a husband files bankruptcy without his wife, then only the husband’s debts are discharged in bankruptcy and the wife’s debts are still unaffected.

What happens if a husband files bankruptcy without his wife?

If a husband files bankruptcy without his wife, then only the husband’s debts are discharged in bankruptcy and the wife’s debts are still unaffected. If the debts are held jointly, then the non-filing wife will still owe even after one spouse has filed bankruptcy.

Can a spouse file a chapter 13 bankruptcy?

If your debts with your spouse are largely joint debts, filing for Chapter 13 bankruptcy will protect your spouse as well as you from those creditors with something called the “codebtor stay.”

Are there any exceptions to bankruptcy for jointly held property?

Another exception has to do with jointly held property. In a normal bankruptcy, much of the debtor’s (non-exempt) property is hauled away by creditors. If that property is jointly held, it can also be taken away.