Should My Spouse File For Bankruptcy With Me?

You can file bankruptcy with or without your spouse. However, the means test—the test that is required to determine your eligibility for Chapter 7 bankruptcy or the terms of your Chapter 13 plan—is based on your entire household's income, which includes your spouse's income if he or she is living in the same household. To determine whether only one or both spouses should file bankruptcy, there are several factors that should be considered such as whether the household debts are mostly attributed to one spouse; whether there is an immediate need for one spouse to have unrestricted access to credit; and whether it is truly in each spouse's best interest individually to file for bankruptcy. For example, if only one spouse is facing garnishment for an unpaid debt and/or the majority of the household debts are attributed to him/her, it may be in the couple's best interest for that spouse to file bankruptcy individually. On the other hand, if both spouses are facing garnishment and share joint responsibility for the majority of household debts, it may be in their best interest to file bankruptcy as a married couple. At Douglas County Bankruptcy Lawyers, our attorneys can help couples evaluate whether one or both spouses should file bankruptcy. Give us a call today for a free bankruptcy case evaluation.