Whenever a couple comes into my office for their free consultation, one of the things we go over is whether or not they’ll be filing a joint petition or whether just one of them will be filing for bankruptcy. While many of the couples come in to see me would like at least one of them to remain with a strong credit score, there are many factors to take into consideration. The first would be whether or not their debts are joint. If they are, creditors can still pursue the non-filing spouse for the debt. If their debts are separate and one spouse’s debts are the cause of their financial situation, it might not make sense for both of them to file.
Another factor, especially if you are considering Chapter 13 bankruptcy, is the possibility of divorce. Carrying through a Chapter 13 plan post-divorce can be challenging, given the contentious nature of divorce and the uncertainty of financial consequences. Nevertheless, if you are thinking about divorce and qualify for Chapter 7, you may want to consider a joint petition. Otherwise, the non-filing spouse will still be on the hook for any joint debts, despite any settlement agreement. You should also consider filing before moving forward with your divorce. This will help reduce the number of issues that have to be resolved as you navigate your marital dissolution.
Bankruptcy is more than just filling out forms. A bankruptcy attorney can help you consider all of the issues that filing, either together or individually, can present. Consider talking with an attorney to see if a joint petition is your best option.