People often wonder, “can one spouse file bankruptcy without the other?” Yet, there are so many bankruptcy myths and misinformation floating around that finding the truth about bankruptcy, and learning how bankruptcy works can be a troubling thing.
This is why it’s important to consult bankruptcy law attorneys. They determine whether bankruptcy is an option for their clients in the first place, which kind might work, guide them through the process, and provide answers to any questions, like can one spouse file bankruptcy, that may occur in the process.
So, “can one spouse file bankruptcy or not?” Well, there’s good news and bad news. The good news is that yes, it is possible. The bad news is that those who ask “can one spouse file bankruptcy” likely wonder because they don’t want to take their spouses with them. However, filing individually can still affect a person’s spouse.
The biggest factor that comes into play is whether you live in a community or common law property state. Common law property states follow the rules of equitable distribution, while community property states deem most property acquired during marriage to be equally owned by both spouses–regardless of who is on the title.
Essentially, common law property states make filing individual bankruptcy separate from a spouse a possibly a better option than community law property states.
Hopefully, this answered your questions, but if you have any more, feel free to ask in the comments! References: koehlerbankruptcy.com