Should You File an Individual or a Joint Bankruptcy?

Filing for an individual or joint bankruptcy is a decision that needs to be looked at in depth by the couple involved. Even though two people are married, their financial situation may not have much in the way of overlap. There may be shared bills such as the electricity, gas and others, but items such as credit cards may not be. Alternatively the couple may be in it together all the way, both having a share in all of the household bills.

What To Expect When Filing Individually

You are given the option to file as an individual even though you're married. Everyone has their own credit rating that is uniquely theirs, and theirs alone. So there is no need to involve the other person in the marriage if it's only you that has debt issues. Protecting the person with the better credit score should be of the utmost importance in this situation. Having one person in the relationship with good credit will make life easier in the long run. The outcome of an individual filing while married will be that one person will come out unscathed while the other rebuilds their credit. Consider this route if there are no large debts that are secured jointly.

The Decision To File Jointly

Filing jointly comes into play when taking into account different factors. How much debt are both parties liable for, is there property involved, and who owns it. When husband and wife file, all of the debts that they both guaranteed will be wiped out. If only one spouse files, the other will be responsible for their share. This may or may not be a preferable decision. The court views a joint filing as two separate entities filing under one case which brings other issues into play that don't apply in an individual case. It's this particular situation where a bankruptcy attorney will help you with the best decision.

A Course Of Action

The more complicated your case, the more difficult it is to proceed through a bankruptcy. A married person filing individually with no major debts like a car or house loan will have it the easiest. Married filing jointly with a mortgage, car loans, credit card debt and various other secured or unsecured loans have a lot more work ahead of them. Both situations should hire an experienced bankruptcy lawyer, but a joint filing shouldn't be without one at all. Your lawyer will know the rules regarding property when filing joint and will be able to give you the best advice on what and what not to do. You'll have assistance to keep what you want and let go of the rest. Best of all, you'll gain peace of mind without wondering what's going to happen next.