If You File Bankruptcy, Does Your Spouse Need to File Also?

If You File Bankruptcy, Does Your Spouse Need to File Also? "Approximately 50% of Americans have been divorced and remarried in today's society. Due to this phenomenon, many individuals enter their second marriage with baggage. This has created an intriguing problem for those seeking bankruptcy protection. If a person is married and has debt from the past, must their spouse also file for bankruptcy? The correct response is no. Even if a person has been married his or her entire existence, he or she can file separately. When a couple's finances become intertwined, the situation becomes challenging. This is the circumstance in which a spouse may be liable to a creditor when the other spouse fails to pay a bill. If someone has a joint account and one of them files for bankruptcy to eliminate debt, the other person would be responsible for 50% of the debt. In the majority of states, the creditor would only be able to collect fifty percent of the amount.In the current world, more than fifty percent of marriages terminate in divorce in the United States. Because of this, the situation can radically change. Frequently, an individual will enter a second marriage with existing debts. Individual bankruptcy would be preferable to joint bankruptcy for this individual. The new spouse cannot be held accountable for past debts. Although declaring bankruptcy prior to remarriage would have been preferable for the individual. As more individuals marry and divorce, the problem becomes more complicated.If a couple has been married for a number of years, they should file for bankruptcy jointly to ensure that all debts are discharged. The last thing a person would want is to file individually and have creditors attach prior debts to a spouse's property or bank account. Due to the nature of this form of bankruptcy filing, a person should consult with a bankruptcy attorney to determine the best course of action for their specific circumstances. Some individuals are unaware that their spouse may be held responsible for joint accounts. Another issue arises when one of them files for insolvency and they jointly own property. If they reside in a community property state, all of the couple's assets will be valued at 50 percent for the insolvent spouse. Since the same bankruptcy exemptions apply, this is sometimes advantageous for the individual. The fact that you are married does not necessarily require you to file bankruptcy jointly. It is feasible to file separately.
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