What happens when one spouse goes into bankruptcy and the other does not? At Greene Law, PC in Connecticut, the attorneys know filing for bankruptcy can become more complicated when only one spouse files. Here, they offer a few pieces of valuable information for individuals who are considering filing Chapter 7 or 13 bankruptcies without their spouses as joint petitioners.

Here are things you need to know when filing for bankruptcy without your spouse: 

• Joint Debts: If you and your spouse have joint debts, such as credit cards or mortgages, those creditors can seek payment from your spouse while you are under bankruptcy court protection. Even though you receive a bankruptcy discharge, your spouse is still liable for the remaining joint debts.
• Joint Property: When you and your spouse own property jointly, your bankruptcy property exemptions under Chapter 7 and 13 only apply to your share of the property. In a Chapter 7 case, the bankruptcy trustee can force the sale of the entire property to obtain the nonexempt portion and use it to pay creditors. The trustee must then compensate the non-filing spouse for the nonexempt portion of the property that they own.      
• Credit Scores: While you and your spouse have separate credit scores, your bankruptcy is likely to mean a higher interest rate for your future joint debts, such as a home mortgage or car purchase. Your bankruptcy remains on your credit report for 10 years.

At Green Law, PC, dedicated bankruptcy attorneys guide their clients through the intricate rules that apply when only one spouse is filing for bankruptcy. You can depend on their deep experience and strong advocacy to protect your interests throughout the bankruptcy process. If you foresee filing for bankruptcy, whether it’s with or without your spouse, consult Greene Law, PC in Connecticut first. Call (860) 676-1336 or visit their website to send an email requesting an appointment with a bankruptcy attorney.