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Can a married couple file bankruptcy individually?

Saturday, April 24, 2010 by W. Travis Garrison

Cupps & Garrison: Bankruptcy Lawyers in Ohio

Can a married couple file bankruptcy individually? Yes...

Married couples seeking bankruptcy advice in Ohio often inquire whether both spouses need to file bankruptcy. The answer is no, and it’s not at all uncommon for one spouse to file bankruptcy while the other does not.

More frequently couples find that their financial affairs are so interlinked that it makes sense for both to file together, and thereby both enjoy the fresh start together.

However, there is nothing that requires both spouses to file or prevents an individual from filing if that person’s spouse does not.

There may be a number of reasons why filing bankruptcy is right for one spouse but not for the other. For example, one spouse may have previously received a discharge in bankruptcy and is therefore not eligible to file again at this time.

Or maybe one spouse owes all of the debts while the other has none (or has only debts that would be nondischargeable). There may even be situations in which the best solution is for one spouse to file a Chapter 7 case while the other spouse proceeds under Chapter 13 Bankruptcy in Ohio!

There are additional considerations that may weigh in favor of a joint filing, however. One thing to remember is that, if both spouses are jointly liable on a debt and only one spouse files, only the filing spouse will be discharged and the non-filing spouse will still be liable for that debt.

For example, if a married couple has a credit card that is in both their names and only the husband files bankruptcy, his personal liability on that credit card debt is discharged, but his wife remains liable for the entire amount. The credit card company can no longer try to collect from him, but they can still take action to collect from her.

Every couple faces unique financial circumstances, so please speak to experienced bankruptcy attorneys in Ohio for a complete evaluation.

Cupps & Garrison
35 E Gay St, Suite 402
Columbus, OH 43215
Phone: 614-441-8603

Posted at 08:19 AM

Topic: Commercial Law