Filing for bankruptcy can be complex and challenging. However, as a married couple, there are several options available to help simplify the process. Here’s what you need to know before meeting with a bankruptcy lawyer.

What Happens When You File a Joint Bankruptcy?

Filing jointly is an efficient method for declaring bankruptcy. It allows two individuals to list all of their property, income, debts, and expenses on a single set of documents and alleviates the need for multiple trips to the court house. Once the information is filled in, a bankruptcy lawyer will review the paperwork and determine the next steps for the couple.

If they’re filing for a Chapter 7 bankruptcy, the non-exempt assets and property will be sold to cover the payments that are due to the creditors. For a Chapter 13 bankruptcy, the lawyer will create a new repayment plan based upon what you can afford with your current income levels. Both options will cause a decrease in your credit rating.

When Should You File Separately?  

Filing separately is best for couples who have uneven amounts of debt. It prevents damaging the other person’s credit and provides a way to pay off each of your creditors.

List only the property, income, debts, and expenses that are your responsibility. The final calculations will determine how to proceed with the case and will ensure that you can make future payments. Any joint accounts that were created after marriage should also be included as these are part of your assets and will affect the results.

If you’re in debt, reach out to the offices of William C. Rieth. He’s a skilled bankruptcy lawyer who’s devoted to protecting his clients. He has been serving Monroe County, NY, for over 25 years and understands the ins and outs of the filing process. Call (585) 232-6520 to set up your free consultation, or visit his website for additional information on this bankruptcy lawyer’s services.