Can you File Bankruptcy without your Spouse?

Can One Person in a Marriage file Bankruptcy?

The answer is Yes.
But – Should You? Is the Right Question

Before reaching that decision, married couples need to evaluate the options, pros, and cons. I can explain how filing for bankruptcy affects couples.

Does it Make Sense to file Bankruptcy Jointly with your Spouse?

I want to be clear, there is no single scenario that explains when it makes sense. There are variables that, when evaluated clearly, show the benefits of Husband and Wife filing bankruptcy together.
When you meet with me, I review your financial situation in depth. I review spouses’ debts to determine who has them and which debts. Spouses’ Debts versus the other spouse’s debts, income, and assets.
Contact me today: Fill out the form or call me (201) 446-5904

Examples of when filing a Chapter 13 Bankruptcy jointly (husband and wife) works:

Both have considerable debts.
Joint Debts* – If there are joint credit card debts, both are responsible, and you want to discharge both.
Joint Tax Debts.
Spouse co-signed a debt* for the other spouse. You want both to be discharged from the responsibility to repay the debt.
Upon completion of the bankruptcy, the entire family is debt-free rather than just one spouse.

*Both spouses sign for a debt; Both are legally responsible for its repayment.

Examples of when filing a Chapter 13 Bankruptcy Solo works:

The non-filing spouse has separate assets and is not part of the bankruptcy.
The non-filing spouse’s assets need not be included in the bankruptcy petition or plan and are not reported by credit agencies.
The household income information is required only for the non-filing spouse; no assets, business, or other information.
One spouse still preserves their creditworthiness. Credit remains available during bankruptcy, and the non-filing spouse can use credit cards and apply for credit.

Examples of when filing a Chapter 13 Bankruptcy Solo does not work:

One Spouse’s debts are handled

The other non-filing Spouse remains in Debt
The entire family remains in Debt, and stress persists.

Tax Debt in Bankruptcy Filing Solo does not work:

If there is a joint tax debt, the filing spouse may include it in the bankruptcy. That person is then free of the tax debts.
The non-filing spouse is responsible for the tax debt because the return was filed jointly.

Some believe that if one spouse includes their tax debt in bankruptcy and the debt is not required to be repaid, the other spouse reaps the same benefits. That is not true.

Below is one example when it does not work well for filing solo:

A client filed a solo return, paid less of the tax debt, and can discharge some tax liability. The IRS sent a notice to the spouse stating that the spouse was responsible for the difference between the amount owed and the amount repaid by the filing spouse.

To make matters worse for the non-filing spouse, the interest and penalties are assessed to the non-filing spouse. The interest and penalties can be substantial.

Medical Debt in Bankruptcy Filing Solo Does Not Work:

The non-filing spouse has considerable medical debt, and the filing spouse does not. The non-filing spouse would not be free of the debt.

When you meet with me, I will work through scenarios for filing bankruptcy:

Husband and Wife File Joint Chapter 13 Bankruptcy
Husband and Wife – Can one spouse file a Chapter 7 Bankruptcy and the other file a Chapter 13 Bankruptcy? That is possible, too.
Husband and Wife – Solo bankruptcy? Only one spouse files for bankruptcy.
One spouse can file now, and the other can file later.

Can One Spouse File Bankruptcy Without Other?

There is no simple, direct answer to whether one spouse can file for bankruptcy while the other cannot.

I will review the specifics of your financial situation and give you expert advice on:

a) What type of bankruptcy should be filed?

b) Should you file a solo bankruptcy or a joint bankruptcy?

c) Should either spouse file for bankruptcy?

Choosing a lawyer when considering filing for bankruptcy is an important decision.

Bankruptcy Law is a very specialized field of law.
I chose to focus my entire practice on New Jersey Bankruptcy Law, and I focus on each client.
I am Board Certified in Consumer Bankruptcy Law, and there are only 3 (three) other attorneys in NJ that are Board Certified in Consumer Bankruptcy Law.

What does having an NJ Board-Certified Bankruptcy lawyer represent you mean?

You have an expert who is working with you on your financial decisions and bankruptcy. I have a proven record.
When you file a Chapter 13 Bankruptcy, you are usually in the bankruptcy for 60 months (five years).
You will need this attorney throughout the process should any issues arise.
You need to know that once the bankruptcy is filed, the attorney will be prompt in responding to you and will continue to see that your Chapter 13 Bankruptcy is successful.

- Keep in mind that whether one spouse files for bankruptcy and the other does not is not the only consideration.
- Is filing for bankruptcy right for you?
- Which bankruptcy is right for you and your family is Key?

About me: Ralph A. Ferro, Jr., Esq.

I am fully involved in my bankruptcy cases from start to finish.

I do not pass on my legal work to anyone else. You meet with me, and I am there for you.