Are you having trouble paying your bills? Considering filing for bankruptcy? If so, you might be wondering how this works if you are married. Worried about what will happen to your spouse if you file individually? Good news! Your spouse’s credit score and report will usually not be affected if you file individually.

Individual Filing

Filing for bankruptcy without your spouse is possible, but can work differently depending on the state in which you live. In California, most of the property acquired during your marriage is owned equally by both spouses. This applies regardless of which spouse is on title. Also, all community property becomes part of your bankruptcy, even if you file as an individual. So, your situation will depend on the property and assets held by each spouse.

All income earned by both spouses may also be considered as household income by the court. This income is used to determine your eligibility for each bankruptcy chapter. Speak with your attorney about what exemptions can be used to protect your community property or community assets.

So, Which Option is Best?

There are many things that can influence your decision on how to file for your bankruptcy. We recommend speaking with an experienced bankruptcy attorney. Together with your attorney and spouse, you will want to consider the following:

  • Do you have shared debts owed to a single creditor? Multiple creditors?
  • Your property – Is any property separate from you and your spouse?
  • Credit scores for you and your spouse
  • Total debt amount – what type of debt – secured and unsecured?
  • The total income for you and your spouse
  • Are you planning on major purchases soon?
  • Be sure to speak about any additional things that you are concerned about

With your attorney, you will be able to go over all options that will work best for you and your spouse. It is good to weigh these options carefully before moving forward. Your attorney can help you plan for the best bankruptcy option for you.

Need More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.