Can I File A Chapter 13 Without My Spouse?
Yes, married couples are permitted to file individually or jointly. To maximize the results of the bankruptcy, it sometimes makes sense to file individual bankruptcies simultaneously for both spouses. Your Charlotte bankruptcy attorney can assist with this calculation.
But Will It Stop A Foreclosure If We’re Both On The Note?
Yes, when one spouse files a Chapter 13 and proposes to keep the mortgage current while making up missed payments over time, the lender is prevented from pursuing a foreclosure again both the spouse that filed and the non-filing co-debtor spouse. Once you’ve completed your plan, you will be current on your mortgage.
What Happens To Jointly Owned Credit Cards?
When one spouse files bankruptcy and the other does not, the filing spouse receives a discharge of the debt. The non-filing spouse will still be responsible for the entirety of the debt (on joint debt); however, while the bankruptcy is ‘active’ the creditors are prevented from attempts to collect or take legal action against both spouses. In a Chapter 13, this provides essential time for the family to execute a financial plan prior to the bankruptcy ending.
Why Would One Spouse File And The Other Not?
Preservation of the non-filing spouse’s credit is a great reason to consider a single filing. Provided that the relief granted by the single filing will be impactful enough, upon discharge, the debt (of the filing spouse) is discharged and the non-filing spouse still has good credit standing which can be used to purchase a home or car.
While the bankruptcy rules are generous to those preparing to file, there are some instances where one spouse may have inheritance or significant assets which prevent them from filing. In that case, the spouse with fewer assets can still file and will receive the relief from debt as a result.
Lastly, sometimes one spouse has engaged in transfers of property within the last year which would prevent or frustrate a bankruptcy filing. Again, in that case, the other spouse can file and the court is not interested in the transfers of the non-filing spouse.
Talk To An Attorney
Don’t delay on finding out more about your options. I spend much of my time each day advising individuals over the phone about the possible relief they can achieve through bankruptcy. Call me today for a conversation which will provide clarity and help you decide. 704.749.7747.