Married couples must decide between joint filing or separate filing when determining which is the right choice for them when filing bankruptcy in Texas. Bankruptcy is a complicated process and it involves many different rules and laws. These laws should be reviewed with a Plano bankruptcy attorney and can influence the decision to file separately or as a couple.
Pros of Joint Filing Bankruptcy in Texas
Many couples choose to file bankruptcy jointly because it makes financial sense. Texas is a community property state, so if a couple acquired property or debts together, they are both seen as responsible for the debts and as co-owners of their assets. Filing together may be the best option if a good deal of community property or debt exists.
Filing jointly can also be very convenient because the couple only needs to do one set of paperwork and they can also use the same Plano bankruptcy attorney. This can cut down on the time it takes to complete the bankruptcy process and makes it a more streamlined experience. It can also reduce costs associated with filing.
Exemptions are another reason why couples may choose to file jointly. Both the state and federal governments offer bankruptcy exemptions to allow filers to hold on to some of their assets. Couples filing jointly can double their exemptions.
Cons of Joint Fling Bankruptcy in Texas
One of the biggest cons of filing jointly is that both spouses will have a bankruptcy appear on their credit reports. This may affect ability to take out loans and acquire credit after the bankruptcy. Further, if only one spouse has significant debt and there is little community property, then filing jointly would also subject the other spouse’s separate property to the bankruptcy process.
The decision to file jointly is one that the couple should make with the guidance of a Plano bankruptcy attorney. Speak with a lawyer before filing to get a clear picture of the options and an idea of what to expect before, during and after the joint filing process.