If you or your spouse is struggling with a substantial amount of debt, your family’s financial security is likely at stake. As a result, you may be considering declaring bankruptcy. When a married couple accumulates more debt than they can reasonably pay off, they will have a couple of options in regard to filing, and a bankruptcy attorney can determine the most strategic approach for their situation. Below, Ray T. Kennington, Attorney At Law explains what you need to know about filing while married.
When a couple files jointly, all of the property the spouses own becomes part of the proceedings, as does all applicable debt each party has accumulated. There are several advantages to this kind of arrangement. For example, both parties can discharge their debt, but they only have to pay one filing fee and hire one bankruptcy attorney. Additionally, the exemption limits in Alabama double for those declaring Chapter 7, which might allow couples to keep property they would otherwise lose when filing separately.
When a married individual declares bankruptcy alone, all of his or her separate property is part of the estate, as is his or her share of any marital property. This arrangement can be beneficial when the other spouse has a considerable amount of separate property to protect, like a small business or family inheritance. A bankruptcy attorney may also suggest filing separately if a couple is recently married and has not yet merged their finances. For example, if one spouse was struggling financially before the marriage, they can attempt to discharge applicable debts by filing separately while the other spouse is removed from the proceedings.
If you and your spouse want to discharge an overwhelming amount of debt, turn to Ray T. Kennington, Attorney At Law. Based in Ozark, AL, this resourceful law firm helps individuals throughout the community resolve all kinds of legal issues. Whether you were hurt in a motor vehicle collision and want to hold the liable party financially accountable or need to file for divorce, you can rely on their strategic team for compassionate counsel every step of the way. Visit their website to explore the comprehensive legal services they provide, or call (334) 445-1200 to schedule an initial consultation with a bankruptcy attorney today.