If you are married, you probably have a lot of property that is owned by you and your spouse together. Most loans are made to a couple, meaning each party is just as responsible for repayment as the other. This type of loan structure is usually the result of the need to show the most income possible, and when you have two salaries to go off of the chances of being approved by a lender are greater. The end product is a jointly held obligation, and if you and your spouse get into financial trouble, you will need a resolution that helps you both. Filing for bankruptcy is a good option when you don’t have enough money to pay all of your bills, and you can file a case by yourself or you can file one with your spouse.
A joint bankruptcy filing is one where both spouses file. The benefit to a joint filing is that the lender will no longer be able to collect the debt from either spouse. Other things to consider include:
• Whether a joint filing is best for your circumstances, because there are instances where it is better for only one spouse to file. A good example is if only one spouse signed for most of the debt. If that is the case, then it does not make sense for both spouses to file bankruptcy.
• If both of you are obligated on most of your debts but you think it might be better for only one to file, so the possibility of taking out new debt can be accomplished by the non-filing spouse it is critical to remember that only the spouse who files a case will be relieved of the obligation to pay. So the truth is the debt still has to be paid, and most times those payments come out of family funds. In order to relieve both spouses of the need to pay for jointly acquired debt, both spouses must file a bankruptcy petition.
• The exemptions you plan to claim can come into play when making the decision to file a joint or separate case. This is a tricky part of every case, and is one that is best discussed in detail with a qualified bankruptcy attorney. Claiming the wrong exemptions or claiming them improperly can cause you to lose property, so talk it over carefully with your lawyer.
Most couples do make the decision to file together because most debts are held jointly. When you make this choice, both of you are given a fresh financial start and you can put your family on the path to financial recovery. For more information about bankruptcy and how it can help you and your family, call us today.
For help with your questions about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that help get you back on your feet.