With society placing a negative stigma around bankruptcy, you may experience a fear of judgment when petitioning for one yourself. But you may feel awful about having your spouse endure this alongside you by filing for bankruptcy jointly. For this reason alone, you may be strongly leaning toward an individual filing; but you should know that there are many other greater factors to consider. With that being said, please follow along to find out whether you should file a bankruptcy petition with or without your spouse and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you choose the best option given your set of circumstances.

Should I file a bankruptcy petition with or without my spouse?

In short, you must take stock of your debts and overall financial situation before deciding whether to file a bankruptcy petition with or without your spouse. Without further ado, below is a general set of guidelines you should weigh for each option:

  • You should file a bankruptcy petition individually if:
    • Your financial strife mainly comes from separate debts solely under your name.
    • You and your spouse have an established prenuptial agreement that has kept your finances separate thus far.
    • Your spouse has filed for bankruptcy in the very recent past and is not yet eligible to participate in another filing.
    • Your spouse may be anticipating an inheritance soon that you do not want to be taken in the event of bankruptcy.
    • Your spouse may wish to pursue an individual bankruptcy filing in the near future if they anticipate it being necessary.
  • You should file a bankruptcy petition jointly if:
    • Your financial strife mainly comes from joint debts titled in both your names.
    • You do not want your spouse to assume full responsibility for your joint debts during your individual bankruptcy filing.
    • You and your spouse may want to double your bankruptcy exemptions in a single bankruptcy filing.
    • You and your spouse may not want to double the cost of two separate bankruptcy filings if the need for a second is anticipated.

Should I file for bankruptcy while going through a divorce?

While you are toying with the idea of a bankruptcy declaration, you and your spouse may be simultaneously deeply contemplating getting a divorce. After all, your financial struggles may have driven a wedge between you two. We are sad to hear that we are going through such a difficult time in your life, but we are here to help you think clearly and take the right steps forward.

Overall, we do not recommend going through bankruptcy and a divorce at the same time. This is because bankruptcy may significantly delay and complicate your divorce proceedings, as your assets and debts need to be resolved in your bankruptcy before the property division can be settled in your divorce. Usually, it is best to have debts eliminated in bankruptcy first so that you can worry about one less argument in your divorce.

To better understand your legal rights in the matter at hand, please seek the advisement of a sound and talented lawyer of bankruptcy & divorce in Kentucky. Please feel confident in knowing that our team at Schwartz Bankruptcy Law Center has significant experience in handling legal cases just like yours. So call us today.