Financial difficulties in a marriage may make you wonder about your options for handling debt independently. If you find yourself in a tough financial situation, filing for bankruptcy might seem like a viable solution.
But can you file for bankruptcy separately from your spouse?
Filing individually
According to United States Courts.gov, more than 433,000 people filed for bankruptcy in 2023. Yes, you can file for bankruptcy separately from your spouse. There are a few key factors to consider before making this decision.
Understanding the types of bankruptcy
There are two main types of bankruptcy that individuals typically file for: Chapter 7 and Chapter 13. Chapter 7 bankruptcy involves liquidating your assets to pay off your debts, while Chapter 13 bankruptcy involves creating a repayment plan to pay off your debts over time. Depending on your specific financial situation, one option may be more suitable than the other.
Considerations for married couples
A married person who is considering filing for bankruptcy separately from their spouse should understand how this decision may impact both parties. While filing individually can protect your spouse from your debts, it may not always be the best option for your overall financial well-being. If you live in a community property state, your spouse’s assets may still be at risk, even if they are not filing for bankruptcy themselves.
Seeking professional advice
Filing for bankruptcy can be challenging, especially when considering the implications for your spouse and your shared financial responsibilities. Consulting with a professional can provide valuable insight into your options and help you make informed decisions about your financial future.
Filing for bankruptcy is a serious decision. Carefully examine your financial situation to determine if and how to go about it.
