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

Comments

Post a Comment

Popular posts from this blog

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more