Should You File Bankruptcy Alone Or With Your Spouse In West Virginia?

In this article, you can discover…

• If your spouse’s credit score can be protected if you file for bankruptcy.
• What happens to jointly owned assets if only one spouse files for bankruptcy.
• How joint mortgages or car loans are affected during bankruptcy.

 Can My Spouse’s Credit Score Be Protected If I File For Bankruptcy Alone?

It is absolutely possible for your spouse’s credit score to be protected if you file for bankruptcy alone.

It is very common for one spouse to file for bankruptcy without the other. Just because you’re married does not mean you have to file for bankruptcy together. In fact, sometimes it makes sense for only one spouse to file, depending on your specific financial circumstances.

If you file for bankruptcy, your filing does not in any way affect anyone else’s credit by virtue of your filing for bankruptcy. Unless your spouse is jointly obligated on a debt with you, your bankruptcy will not impact their credit score or make them responsible for your debts.

What Happens To Jointly Owned Assets If Only One Spouse Files For Bankruptcy?

The critical thing to understand is that simply filing for bankruptcy doesn’t mean you’ll lose your assets, even if they’re jointly owned with your spouse.

In a Chapter 7 bankruptcy, you’re allowed to keep certain exempt assets. If you’re married and filing individually, the bankruptcy court generally only looks at your share or your interest in jointly owned property, not your spouse’s.

How jointly owned assets are treated can be one of the most complicated parts of a bankruptcy case. In fact, it’s often the deciding factor in whether we file a Chapter 7 or choose another route, like Chapter 13. Which is why it’s so important to work with an experienced bankruptcy attorney.

There are a lot of options within bankruptcy law that enable you to protect your property, and you’ll want a good bankruptcy attorney to help guide you through the process who has full knowledge of these tools and exemptions so you can keep what’s yours.

David Hinkle is an experienced bankruptcy attorney in West Virginia. Over the past several decades, he has worked diligently to help guide his clients through the complexities of bankruptcy law and toward a better financial future so they can move forward with confidence.

Still have questions? Ready to get started? Contact Hinkle Law, PLLC today to schedule an initial consultation.

You Don’t Have to Face This Alone. Let’s Talk About Your Options - (304) 596-2423

How Are Joint Mortgage And Car Loans Affected When Only One Spouse Files Chapter 7?

A common scenario is often where one spouse files for Chapter 7 while both spouses are on a joint mortgage or car loan. Typically, the person filing may have credit card debt they want to eliminate, while the joint mortgage and auto loans are up to date and being paid.

As long as the payments on the house or car are current and you want to keep those assets, your bankruptcy filing won’t disrupt them. As long as you’re keeping up with the payments, Chapter 7 is mainly focused on unsecured debt, like credit cards or medical bills, not secured debts like mortgages or car loans.

Will Filing Bankruptcy Separately From My Spouse Lower Our Chances Of Chapter 7 Approval?

No, filing bankruptcy separately from your spouse typically does not reduce your chances of being approved for Chapter 7. In fact, in some situations, it may actually improve your eligibility.

Chapter 7 approval is primarily based on your individual financial circumstances, such as your income, assets, and debts. If you and your spouse keep your finances mostly separate, then filing individually can help avoid your spouse’s income being included in the means test, which might make it easier for you to qualify.

David Hinkle is an experienced bankruptcy attorney in West Virginia. Over the past several decades, he has worked diligently to help guide his clients through the complexities of bankruptcy law and toward a better financial future so they can move forward with confidence.

Still have questions? Ready to get started? Contact Hinkle Law, PLLC today to schedule an initial consultation.

You Don’t Have to Face This Alone. Let’s Talk About Your Options - (304) 596-2423

When Couples Have Differing Views On Filing Jointly Vs. Individually

It’s actually very common for married couples to consider filing bankruptcy individually rather than jointly, and in many cases, that’s the better option.

In most marriages, one spouse tends to accumulate more debts than the other simply due to the logistics of their relationship. One partner might be the one who signs up for credit cards or takes out loans without even realizing they’re becoming the primary debtor. So, when they come to me for help, it’s not unusual to have one spouse holding the majority of the debt and be interested in filing for bankruptcy.

Other times, both spouses are open to the idea of bankruptcy, but I advise against a joint filing based on the numbers. For example, if a couple has $25,000 in credit card debt and $23,000 of it is in the husband’s name while the wife only has $2,000, it usually makes more sense for the husband to file alone. If the couple were to file jointly in that case, it would result in a bankruptcy on the wife’s record for a very small amount of debt.

Ultimately, the decision to file individually or jointly is usually based on what makes the most financial sense. My job as your bankruptcy attorney is to walk you through the pros and cons of both options and help you make the best decision possible for your unique situation.

Still Have Questions? Ready To Get Started?

For more information on joint bankruptcy in West Virginia, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (304) 596-2423 today.