You may find yourself dealing with great financial burdens that are creating great emotional burdens on your marriage. With this, you may be wondering whether a bankruptcy filing will save your marriage or be the catalyst of your divorce. Follow along to find out how a bankruptcy filing can either hurt or aid your spouse and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can point you in the right direction.
How can a bankruptcy filing hurt my spouse?
Say, for instance, that you and your spouse have accumulated a significant amount of joint debt. Meaning, debt that you are jointly responsible for paying off, such as your mortgage and joint credit cards. In this case, a bankruptcy filing may hurt your spouse if you do so separately. That is, if the filing is only under your name, then your spouse may become solely responsible for your joint debt. This is because a non-filing spouse may not be eligible for the discharge process that the Kentucky bankruptcy court may conduct for you.
This is why it is recommended that a separate bankruptcy petition only be submitted if you are struggling with debts that you have incurred outside or prior to your marriage.
How can a bankruptcy filing aid my spouse?
On the other hand, say that you have your spouse have a significant amount of joint debt and decide to file a joint bankruptcy petition. This may offer your spouse more relief than if you chose to undergo your bankruptcy proceedings alone. What’s more, a single case with a single filing fee is cheaper than two.
Regardless of whether you decide to file separately or jointly, bankruptcy may aid your spouse. This is because turning to bankruptcy may just be the only way to get the financial relief you are so desperately seeking. With that being said, a bankruptcy filing may come with the following benefits:
- Your spouse may experience relief after an Automatic Stay is placed on certain marital assets.
- Your spouse may experience relief after a discharge is ordered for certain marital debts.
- Your spouse may experience relief after a foreclosure is no longer a possibility for your family home.
- Your spouse may experience relief after a bar is placed on creditors’ collection activities.
- Your spouse may experience relief after a bar is placed on their wage garnishment.
- Your spouse may experience relief after paying this off together instead of filing for divorce.
You must remember that there is a support system readily at your disposal to help you and your spouse out of a situation like this. That said, please do yourself a favor and retain the services of a talented Lousiville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center today.