Consider whether to file for bankruptcy jointly or individually

On Behalf of | Jul 26, 2021 | Bankruptcy |

No matter where you are in your marriage, bankruptcy provides a tool for debt resolution that may help ease financial and emotional tensions in the household. But when considering bankruptcy, it is important to note that you may or may not file with your spouse in North Carolina.

There are advantages to both and discussing with your spouse or other resources may help clear up any confusion.

Marriage and bankruptcy

While there is no correlation between being married and needing bankruptcy, married couples represent the majority of bankruptcies in the US. According to, over 64% of bankruptcies consisted of married couples. It is not unusual to think your marriage might need one.

Filing jointly

When you and your spouse file for bankruptcy together, you share the costs together too. This prevents you from having to pay through the court filing fees multiple times. It also helps when you share debt together. If both your names are on a car loan, but only you file for bankruptcy, creditors may still technically pursue your spouse for payments.

Filing individually

There are also benefits to filing individually. For example, the joint stay that applies to your bankruptcy estate also applies to your spouse’s property. But any discharge of debt only applies to debt in your name. This means that you may get rid of some of your debt, but not all of your marriage’s debt if your spouse has some as well.

Filing correctly

Bankruptcy is a complicated matter, but it might be the best tool to consolidate your debts. Communication and information are key in these situations. Talking things out with your spouse and researching the topic more may lead you to the choice that fits your case best.