Filing Bankruptcy Without Your Spouse In Colorado?
What if my spouse doesn’t want to file bankruptcy with me?
Over the years, I’ve gotten this question a lot. Oftentimes, it involves a newly married couple. They’ve come together to share everything, but one spouse may be burdened with overwhelming debt, and neither of them wants to create any problems with the spouse who is in better financial condition.
If it were up to me, all of my married clients would file their bankruptcy petition together with their spouse. It allows the couple to gain a financial fresh start together, and can short circuit certain complications in the future. Also, one spouse’s unwillingness to file bankruptcy can sometimes be a red flag that she is not happy with her husband’s financial choices. Of course, sometimes the decision can’t be helped, such as the non-filing spouse has filed bankruptcy before and has not reached the time limits to file again.
Ultimately, the decision to file bankruptcy with their spouse is up to my clients, and I respect and abide by that decision. I do, however, make sure that I let them know that there are certain consequences for this decision.
Why Couples May Want To File Bankruptcy Together
The good news is that the Bankruptcy Code does not require that spouses file together. However, there can be consequences for spouses who don’t file together.
If spouses do not file together, they should know that:
- the non-filing spouse’s income will still be used to calculate household income, which may disqualify the filing spouse from filing a Chapter 7 petition and will be used to determine a Chapter 13 bankruptcy plan payment;
- their creditors will pursue the non-filing spouse for any joint debts;
If there are no joint debts, and the household can manage any debt the non-filing spouse has, then filing bankruptcy should be fine for just one spouse.
Married couples should carefully consider the consequences of one spouse filing, but not the other. Doing so can have substantial effects on their financial well-being.
Consequences For The Non-Filing Spouse
When just one spouse files bankruptcy, the other should not see in harm done to her credit score. The spouse’s bankruptcy won’t show up on her credit report unless there is a joint debt. If there is a joint debt, that account may be closed, but it still shouldn’t impact the non-filing spouse’s credit score.
If either spouse is an authorized user on an account, I usually advise them to remove that person as an authorized user before filing. Filing while still an authorized user could trigger the closing of that account.
Talk To An Experienced Denver, Colorado Bankruptcy Attorney About Filing Bankruptcy Without Your Spouse
We offer free consultations to individuals who are considering bankruptcy. During your consultation, you’ll meet with an experienced Denver, Colorado bankruptcy attorney who will go through all of your debt relief options, including those that don’t involve filing bankruptcy. We’ll also talk about whether or not you should file without your spouse.
The easiest way to schedule an appointment at a time that is convenient for you is by going to our scheduling page.
Check out our client reviews on Google, Facebook, and Avvo!