Can I File for Bankruptcy With My Spouse?

Understanding how the consumer bankruptcy process works when you are the only one filing is complicated, so when spouses decide that they both plan to file for bankruptcy, the process can seek even more complicated. On the one hand, you might be wondering if it is even possible to file for bankruptcy with your spouse or whether you will each need to file separately. On the other hand, you might have questions about how your plans to file for personal bankruptcy can affect your spouse or partner if your spouse or partner does not want or does not intend to file for bankruptcy. There are many questions that often come up when you are considering or filing for bankruptcy that concern spouses and partners, and our Oak Park bankruptcy lawyers want to ensure that you have a general understanding of what is at stake and how spouses are affected by bankruptcy filings.

If you have specific questions about your circumstances, you should always discuss the particular facts of your case with a lawyer. In the meantime, our firm can tell you more about consumer bankruptcy and spouse issues.

You Can File for Bankruptcy Jointly With Your Spouse

If you are married in Illinois and both you and your spouse want to file for consumer bankruptcy, you can file a joint bankruptcy petition as a married couple. To be clear, you do not have to file individual bankruptcy petitions. Rather, you will file for bankruptcy jointly, and just once, with a joint petition. By filing jointly, you will both save time and added costs that would be associated with filing individually.

When spouses are both considering bankruptcy as well as divorce, and especially when they are considering Chapter 7 bankruptcy (which has a process of around only four to six months from filing to discharge), it often makes sense to file for bankruptcy jointly before moving forward with a divorce filing. Not only will the bankruptcy case result in the discharge of marital debt (and the liquidation of non-exempt marital assets that will not have to be divided in the divorce), thereby saving money and time in the divorce case, but the joint bankrutpcy will also save the married couple the time and costs of filing for bankruptcy individually if they were to file after the divorce.

Joint Filings Only Apply to Legally Married Couples

You should know that the ability to file a joint bankruptcy petition only applies to legally married couples. No matter how long you have been living or cohabiting with a partner, and no matter how long you have shared major assets like real estate or whether you have entered into religious or legal contracts to formalize your relationship, you must be married to file jointly for bankruptcy.

Your Spouse is Not Required to Be Part of a Joint Bankruptcy Petition

It is also important to keep in mind that while a joint bankruptcy petition can save time and money for married couples where both spouses want to file for bankruptcy, U.S. bankruptcy law does not require both spouses to file for bankruptcy when one spouse plans to do so. Given that individual filings can be particularly complicated when the individual debtor is married and shares both assets and debts with a spouse who does not intend to file for bankruptcy, it is especially important to have a lawyer who can work with you on that type of bankruptcy case.

Contact an Oak Park Bankruptcy Attorney

If you have any questions about consumer bankruptcy, including inquiries about joint filings, one of our Oak Park bankruptcy attorneys can help. Contact the Emerson Law Firm today.



See Related Blog Posts:

Top Things to Consider About Student Loans and Bankruptcy

New Information on Debts That Bankruptcy Cannot Discharge

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