In some situations, there are advantages to a married couple filing separately for bankruptcy. Of course, just like any choice, filing separately also has its disadvantages that couples should discuss with Dallas bankruptcy lawyers.
For instance, filing bankruptcy separately can be the best choice when the couple:
- owns little community property;
- has little debt;
- don’t share credit cards;
- don’t have a joint bank account; and
- don’t have any other joint debts or assets.
Reasons for Married Couples Filing Separately for Bankruptcy
In cases where the spouses share assets and debts (community property), they are usually both considered responsible for the debt load. They are still free to file separately, but they need to be aware that they will be dealing with the same debts and assets on both petitions.
If the couple has little to no community property and if only one spouse has significant debt, the couple may benefit from filing for bankruptcy in Texas separately. This allows the other spouse to keep his/her property protected from the process and keep a bankruptcy off of his/her credit report.
Couples who are separated or planning to divorce may also want to file separately simply to keep each other’s legal business separate and distinct; however, filing separately means doing two different sets of documentation and paying separate fees for filing for bankruptcy in Texas.
Many couples – even those who are separated –benefit more from filing jointly, provided that they share debts and assets. It helps save money and time, and in many cases allows the couple to take advantage of double exemptions allowing them to hold on to more of their assets when filing bankruptcy in Texas.
Get Legal Help from Dallas Bankruptcy Lawyers
Filing bankruptcy when married – separately or jointly – is a choice the couple should make after getting legal guidance with Dallas bankruptcy lawyers. Bankruptcy isn’t the right choice for everyone and the pros and cons of bankruptcy in general – as well as for married couples filing separately vs. jointly – should be reviewed before proceeding.
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