When you and your spouse are married, you’ll likely begin sharing your finances in some way. Whether you combine your bank accounts or create a single joint account for household expenses, this can help make your life easier. While sharing finances has benefits, it can also create issues when one spouse decides to file for bankruptcy. If you are considering filing for bankruptcy, it’s important to understand how this process can impact your spouse. The following blog explores what you must know and whether or not your spouse must be involved in this process. Additionally, you will learn how a Memphis, TN consumer bankruptcy lawyer can assist you during these complex legal matters.
Do I Have to Include My Spouse in Bankruptcy?
If you want to file for bankruptcy, it’s imperative to understand how this process can impact your spouse. First and foremost, it’s important to understand that if you are married, you do not need to file jointly with your spouse if you do not want to. Even though you are married, you can still choose to file as an individual. However, it’s important to carefully consider this option.
If you choose to file as an individual, it’s necessary to understand that your spouse will not receive much relief from any debts you share as a couple. Additionally, filing as an individual can also put your spouse’s share of the property at risk during bankruptcy.
What Should I Consider During This Process?
If you’re unsure whether or not you should file with your spouse or as an individual, there are several considerations you should make. The first is whether or not they have a considerable amount of debt. If your spouse is on top of their payments and does not share many debts with you, there is no need for them to endure the bankruptcy process and impact their credit.
Additionally, if your spouse owns a business, including them in your bankruptcy filing can put their company at risk, regardless of what kind of business it is. This is because these are incredibly valuable assets, and protecting them from bankruptcy can be a complicated and costly process.
Finally, you’ll want to consider how your spouse feels about this. They may not want to have a bankruptcy filing on their credit report or worry about the impact it can have on their job or future loans. As such, it may not be in your best interest to file with them if they are against doing so.
As you can see, there are many considerations you must make if you’re married and thinking about filing for bankruptcy. It’s in your best interest to meet with an experienced bankruptcy attorney who can help you and your spouse explore your legal options so you can decide what is best for your circumstances. At the Arnold Law Firm, our team understands how difficult these matters can be to navigate, which is why we are proud to help you through these times. If you’re ready to file, contact us today to discuss your circumstances with a member of our firm.
