Can a Spouse File Bankruptcy in Alabama
Bankruptcy is a legal procedure that occurs when a person or business is unable to repay its current debt payments. Usually, either the debtor or creditor submits a petition. During the assessment, all of the debtor’s assets are considered, and some of these may be used to repay some or all of the debt. Using bankruptcy as a strategy allows individuals, couples, and companies to eliminate their financial obligations while still paying their creditors. It is dealt with in federal courts, and the rules are outlined in the United States bankruptcy code for bankruptcy in Mobile, AL.
Assets of a Married Couple in Bankruptcy
The assets of a spouse are an important consideration when determining bankruptcy. If a couple does not hold joint property, filing an individual bankruptcy in Mobile, AL petition may be the best option. In the bankruptcy filings, the other spouse must list all of their assets.
If the couple owns property together, they might think about filing a joint bankruptcy case. Their jointly owned property will be included in the bankruptcy proceedings. In spite of this, the bankruptcy laws of Alabama provide for married couples to be able to claim double the value of assets held jointly. This gives leverage to the couple in a bankruptcy case.
A single partner can also file even if they have jointly owned property. Consequently, the property is subject to bankruptcy regulations and does not qualify for the double amount.
Debts of a Married Couple in Bankruptcy
The identity under which the debt is registered influences the bankruptcy case. If the major portion of the debt is in the name of one partner, that person may benefit from filing an individual bankruptcy case. This will eventually help the couple improve their financial circumstances. It is recommended that the couple jointly files for bankruptcy if any of the liabilities are in both names. In another case when a single partner will file on jointly owned liabilities, it would relieve the spouse of their obligation to pay. Perhaps, a creditor may sue the other spouse for the debt. Filing a combined bankruptcy petition would include the couple’s collective and individual debts. This might allow them to discharge all of their applicable debt and start over financially.
Income of a Married Couple in Bankruptcy
On the bankruptcy petition, each partner must provide an estimate of their income. In either case, this is necessary regardless of whether the case is jointly filed. These cumulative facts may determine a couple’s bankruptcy preference. The situation may also influence whether they are eligible for Chapter 7 or Chapter 13 bankruptcy.
The Effects of Bankruptcy
In most cases, bankruptcy leads to the loss of assets. As a result, in all forms of bankruptcy procedures, you may be required to liquidate assets in order to repay creditors. Under some conditions, bankruptcy might result in the loss of jewelry, property investments, cars, and other valuables. A bankruptcy can have an impact on your credit history for up to a decade. As a result, some people will refuse you financing in the future. A bankruptcy attorney in Mobile, Alabama can further help to determine the effects of bankruptcy according to the situation.
How an Attorney Can Help
When declaring bankruptcy, there are multiple regulations and criteria to follow, as well as several paperwork difficulties. The bankruptcy attorney in Selma at Loris Bankruptcy Law Firm can help with the legal requirements of the individual case. A bankruptcy attorney in Mobile, AL at Loris Bankruptcy Law Firm can help the couple to navigate the legal complexities of bankruptcy. It will also advise and assist the couple on how to prevent creditor intimidation and avoid being abused. Additionally, once you have been freed from bankruptcy, our bankruptcy attorney in Mobile may help you with financial guidance and suggestions. Hire our experienced Mobile AL bankruptcy attorney to help you through the whole bankruptcy procedure. Our lawyers, legal assistants, and administrative personnel are available to address any bankruptcy-related issues.