Should You and Your Spouse Both File for Bankruptcy?
One of the most common issues for married couples is whether to file for bankruptcy together. Sometimes a joint petition is necessary or advisable, but in other cases it may be beneficial to file in one spouse's name only.
The experienced attorneys of the David F. Cannon law firm can analyze your situation to determine if you should file a joint or individual bankruptcy petition. We provide comprehensive pre-bankruptcy counseling regarding the timing, the long-term impact and other considerations such as a pending divorce or approaching retirement.
Joint vs. Individual Bankruptcy Filing in Tennessee
If most of your debts are joint debts such as a mortgage and credit cards, you will probably have to file a joint petition for bankruptcy.
It may be possible and prudent for one spouse to file an individual petition, for instance:
- When one spouse has little debt and the couple wants to protect his or her credit.
- When an inordinate amount of debt has been incurred by one spouse in that spouse's name.
In Tennessee, the unique legal concept of tenancy by the entirety provides a distinct advantage to couples who own a home and have no unsecured debt between them. We can determine if this applies to you.
If one spouse qualifies individually for bankruptcy, only that spouse's debts can be discharged (Chapter 7) or reorganized (Chapter 13 or Chapter 11). However, there are many advantages to filing separately: The other spouse's credit rating does not take the hit, the couple can continue to borrow money, and the non-filing spouse will remain eligible for bankruptcy if there is ongoing financial trouble.
Bankruptcy Analysis for Married Couples
David F. Cannon is certified as a Consumer Bankruptcy Specialist by The American Board of Certification and The Tennessee Commission on Continuing Legal Education and Specialization. He has helped thousands of clients file bankruptcy since 1991, including hundreds of married couples and individual spouses.
You can reach our individual/joint bankruptcy petition lawyer in Nashville at 615-800-3725 or toll free at 877-696-8680, or e-mail our law office today to arrange a confidential consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
