Is It Possible to File Bankruptcy If I’m Married?
Filing bankruptcy is sometimes the best option available to you for unburdening yourself of outstanding debt. When you are unable to pay, Chapter 7 or Chapter 13 bankruptcy can help. However, you may wonder if you can file if you are married.
When you are married, it is possible to file bankruptcy individually without involving your spouse. However, even if you file alone, the bankruptcy can adversely affect them. There are certain factors that can determine whether filing bankruptcy will affect your spouse, which include the following:
• Whether your property and debts are joint with your spouse
• The specific property laws in the state
• Whether you file Chapter 7 or Chapter 13 bankruptcy
Generally speaking, when you file for bankruptcy independently of your spouse, it does not affect their credit. However, if there are joint debts between the two of you, if you file to discharge that debt, it can appear on their credit report. Creditors will also still receive notice of the bankruptcy and look toward your spouse to collect on joint debt.
In regard to property that you and your spouse own separately, your bankruptcy should not affect that. However, any assets or communal property is a different story. In Alabama, the property you both own is considered part of the bankruptcy estate. With Chapter 7 bankruptcy, the bankruptcy trustee can sell jointly owned assets if you cannot exempt the value of the interest and the property cannot be divided. If the property is then sold, the trustee will pay your spouse the value of the interest and use the amount of money from the nonexempt property to pay back your creditors.
If you are considering filing bankruptcy in Alabama, you need the Loris Law Firm on your side. A bankruptcy attorney Selma AL based will protect your rights every step of the way. Contact the best bankruptcy attorney Selma AL has to offer at the Loris Law Firm immediately.