Pros and Cons of Filing Bankruptcy Jointly with Your Spouse

While personal bankruptcy often involves an individual person filing for a Chapter 7 or Chapter 13 bankruptcy, bankruptcy cases can also be filed jointly by spouses. Indeed, a married couple can decide to both file for bankruptcy, in which case they would file a joint bankruptcy petition. There are pros and cons associated with filing for bankruptcy jointly, and it is important to gather the information you need in order to make an informed decision about your bankruptcy plans as you move forward. Should you file for bankruptcy jointly with your spouse? Consider the following information from our West Palm Beach bankruptcy lawyer.

Pros of a Joint Bankruptcy Filing in South Florida

For many married couples who are struggling with debt, there are numerous benefits of a joint bankruptcy filing. The following are among the notable “pros” associated with filing bankruptcy jointly with your spouse:

You will only pay filing fees and associated costs for one bankruptcy case, which means that you will save money if both parties are considering individual bankruptcy filings;
You can double exemptions, which can be particularly beneficial if you are filing for Chapter 7 bankruptcy and want to keep more assets, but it can also be beneficial for a Chapter 13 bankruptcy case as far as determining the repayment plan terms; and
You can both get a fresh start financially, usually within months from the date of filing, and can begin to rebuild credit together or individually (for this reason, a Chapter 7 joint filing is particularly helpful if a couple is planning to file for divorce).

There are other benefits of joint bankruptcy filings, too, which your bankruptcy lawyer can discuss with you in connection with your particular circumstances.

Cons of a Joint Bankruptcy Filing in South Florida

While a joint bankruptcy filing can be beneficial in many ways, it may not be the best decision for certain married couples. Some “cons” associated with a joint filing include the following:

Both spouses salaries will count — combined — when taking the “means test,” which might result in ineligibility for Chapter 7 bankruptcy;
If one of the spouses may be able to repay their individual debt or get out of debt by other means, it may not be worth the effect on their credit to be a joint filer in a bankruptcy case; and
If the spouses are planning to file for divorce and want to file for reorganization bankruptcy under Chapter 13, the case will take several years or longer, which may pose complications for the divorce.

Contact Our West Palm Beach Bankruptcy Attorney Today

Before you make a decision about whether to file an individual bankruptcy case or to file jointly with your spouse, it is essential to seek legal advice. One of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan & Eller can assess your financial circumstances and can help you to make an informed decision about an individual or a joint bankruptcy filing. In some cases, it will make the most sense for spouses to file bankruptcy jointly, but under other circumstances, the cons may outweigh the benefits. Contact our firm today to obtain advice about your bankruptcy plans.

Source:

law.cornell.edu/uscode/text/11