If You Are Married, Do You Have to File Bankruptcy with Your Spouse?

A married couple is not required to file bankruptcy with their spouse; however, it is advisable to do so if the debt you want to include in the bankruptcy is under both names. If, on the other hand, each spouse has separate debt, then one spouse may be able to spare his or her credit rating if the other spouse files bankruptcy separately. Contact the Louisiana bankruptcy attorneys at Grand Law Firm to discuss your options and determine the best path for you and your spouse.

Advantages and Disadvantages to Filing a Joint Bankruptcy

If the majority of the debt that will be considered in the bankruptcy is joint debt, a spouse filing a bankruptcy on his or her own will not stop collection efforts such as phone calls, collection letters and lawsuits against the other spouse who is not filing bankruptcy. If both spouses do have their own debt, but both are unable to make the monthly payments to stay up-to-date, it will save time and money to file a joint bankruptcy.

The benefits of filing without your spouse only apply if the other spouse is not listed on any of the debt in the bankruptcy. Assets need to be listed in one spouse’s name to avoid joint assets from being considered in the filing. Credit card debt is sometimes difficult to prove that it is only in the name of one spouse because few people hold on to the original agreement they signed with the credit card company. However, if you established the line of credit prior to being married, you may be able to prove your spouse has no responsibility for the debt owed.

New Orleans and Baton Rouge, LA Bankruptcy

There are many complex issues to consider when you file bankruptcy. The bankruptcy attorneys at the LA offices of Grand Law Firm can give you critical guidance throughout the process and protect your rights and the rights of your spouse. Call today for a free consultation.

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