When One Spouse Files Bankruptcy
In some cases there are advantages to having one spouse file bankruptcy. At the Miami law firm, Ferrer Shane, PL, our lawyers advise people about their options and whether one spouse filing bankruptcy is a good choice.
Spousal Income
If one spouse is filing bankruptcy because he or she has accumulated significant personal debt, the other spouse must still provide information about his or her income and assets. The bankruptcy court considers all sources of income, including the salary of the non-filing spouse. This allows them to determine whether the debtor spouse is eligible for Chapter 7 or Chapter 13. And if the spouse filing bankruptcy does not qualify for Chapter 7, the non-filing spouse's income will be taken into account when developing a payment plan.
Consequences to Credit Reports
If your spouse files bankruptcy, your credit report may be affected if you own joint property. Although credit reporting companies are not supposed to penalize the non-filing spouse for the other spouse's individual bankruptcy, it does occur. That's why it is important to monitor your credit report regularly. In addition, if you jointly apply for loans or credit cards in the future, the filing spouse's bankruptcy may affect the outcome of the application.
Eligibility
If you or your spouse is considering filing individual bankruptcy, there are a few things to consider. Only debts that were incurred by one spouse can be included. For example, if both spouses signed a car loan or mortgage, they are jointly liable. But if one spouse has a credit card in his or her name, debt from that card may be included if that spouse files bankruptcy. If spouses are in the middle of a divorce, other considerations may also apply.
Call a Bankruptcy Attorney About Individual Bankruptcy
Contact our South Florida law firm for more information about having one spouse file bankruptcy. Call Ferrer Shane, PL, at 305-262-2728.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
