Should Spouses Jointly File For Bankruptcy?
Answers from Our Chicago Bankruptcy Lawyers
If you are married, you can always file a joint petition for
bankruptcy. In some cases, the wiser choice is for
one spouse to declare bankruptcy. The decision to file as a couple or as an
individual is fact-specific and should be made only in consultation with
an experienced bankruptcy attorney.
The attorneys of Sulaiman Law Group, LTD, stand ready to help. We have enabled married couples to get a fresh start
through joint bankruptcy filings and through individual petitions. We
can walk you through the key considerations to get maximum relief while
protecting your long-term interests.
Contact us online or call our Oak Brook law office at (312) 313-1613 to speak with proven
Chicago bankruptcy attorneys.
Joint Bankruptcy vs. Spouse as Individual: Which Is Better?
Neither decision is automatically better. The best recourse depends on
many factors, including the type of debt, the type of bankruptcy, credit
scores, financial stability and your goals.
- If the bulk of your debts were jointly incurred, you may be required to
file as a married couple.
If most of the debt was incurred under one spouse's name, there may
be advantages to filing individually. For example, one spouse may be eligible for a
Chapter 7 discharge, whereas the couple would not qualify due to their combined income. Filing
individually can also protect the credit rating of the non-filing spouse.
The legal team at Sulaiman Law Group, LTD, is well versed in the federal
and Illinois bankruptcy laws as they apply to married people in general
and your unique circumstances. Our award-winning attorneys will help you
make the right decision to protect your assets and your ability to borrow.
Luke and Laura* are a lawyer and marketing director living in Bolingbrook.
They have accumulated $80,000 in unsecured debt between credit cards and
a judgment from co-signing a family member's loan. Their $200,000
combined income disqualifies them from a joint Chapter 7, but most of
the credit card debt is in Laura's name and Luke was not a co-signer
on the defaulted loan. Laura files an individual Chapter 7, which discharges
$64,000 (but not all) of their unsecured debt.
Get answers today! If you’re considering bankruptcy,
call our office or contact us online to see which option is best for you and your spouse.
*Luke and Laura are fictitious characters created to illustrate bankruptcy