Yes. Being married does not automatically require both spouses to file bankruptcy.
In many Oklahoma cases, one spouse files bankruptcy while the other spouse does not.
But whether filing alone is the best strategy depends on your debts, property, income and financial goals.
Why Would Only One Spouse File Bankruptcy?
Filing individually may make sense when most problem debts belong to one spouse.
For example, one spouse may have substantial:
- Credit card debt
- Medical bills
- Personal loans
- Business debt
- Old judgments
If the other spouse has little debt, there may be reasons to consider an individual filing.
Does My Spouse’s Income Matter?
It can.
Even if your spouse does not file bankruptcy, household income can be relevant to the bankruptcy analysis, including the Chapter 7 means test and Chapter 13 calculations.
The treatment depends on the facts.
What Happens to Joint Debts?
This is extremely important.
If both spouses are liable on a debt and only one spouse receives a bankruptcy discharge, the non-filing spouse’s personal liability generally does not disappear merely because the other spouse filed.
Your attorney should identify which debts are individual and which are joint.
What About Joint Property?
Property ownership also matters.
A bankruptcy filing requires careful disclosure and analysis of the debtor’s interests in property.
Do not assume that putting property in both spouses’ names automatically keeps it outside bankruptcy.
Will My Spouse’s Credit Be Affected?
A bankruptcy case is filed by the debtor who seeks bankruptcy relief.
However, joint debts and joint financial obligations can create practical effects for both spouses.
If protecting the non-filing spouse’s credit is a major objective, discuss that specifically with your attorney.
Should We File Together Instead?
Sometimes a joint bankruptcy is more efficient because both spouses have substantial dischargeable debt.
In other situations, only one spouse needs bankruptcy relief.
The correct answer requires comparing both options.
Frequently Asked Questions
Does my husband or wife have to sign my bankruptcy?
A spouse does not automatically become a bankruptcy debtor simply because the other spouse files, although financial information concerning the household may still be required.
Can Chapter 7 eliminate our joint credit card debt?
A discharge generally protects the debtor who receives it. A non-filing co-obligor may remain liable on a joint debt.
Can one spouse file Chapter 13?
Yes, assuming the applicable requirements are met.
Should we both attend the bankruptcy consultation?
When possible, having both spouses available can be helpful because household income, joint property and joint debts may need to be discussed even when only one spouse intends to file.
Free Bankruptcy Consultation for Married Couples
If you are married but only one of you has serious debt problems, don’t assume that both spouses must file.
Contact Brown Law Firm for a free bankruptcy consultation. We can compare an individual bankruptcy with a joint filing and explain how each option may affect your debts, property and household.
