How Does Joint Bankruptcy Work?
Many people are unsure about filing for bankruptcy because they do not fully understand the details or facts of the process. The two most frequently utilized forms of personal bankruptcy are Chapter 7 and Chapter 13. The specific requirements and results of filing under these chapters are different, but each may be the right choice, depending on an individual’s circumstances. Couples can choose to file for joint bankruptcy, in which each person declares bankruptcy and is responsible for the debt.
If you or someone you know is struggling financially and is considering filing for bankruptcy, it is strongly advisable to consult with a qualified bankruptcy attorney who can work with you at every step of the process. To discuss your legal options and the advantages and disadvantages of joint bankruptcy, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A., at 561-353-2800 today.
Advantages and Disadvantages of Joint Bankruptcy
A bankruptcy is filed jointly when spouses both declare bankruptcy in one petition. The following are benefits of filing a joint bankruptcy petition:
- One petition is less expensive than two separate ones
- If one spouse files for bankruptcy, the other is still responsible for the couple’s joint debt
- Protects both spouses from creditors
- More efficient and requires less paperwork
There are also disadvantages to filing for bankruptcy. It is important to remember that couples have to be married to file. They cannot be divorced. Some reasons a couple may not wish to file jointly or cannot are:
- If one spouse has filed for bankruptcy recently, he or she may be unable to file as part of a joint petition
- One spouse who has a strong credit history may not want to damage his or her score
Contact Us
If you have any questions about joint bankruptcy, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A., by calling 561-353-2800.
