When facing a difficult financial situation, many married couples consider Filing Bankruptcy in Indianapolis IN. One of the many questions they will face is whether to file jointly or have only one spouse file. There are several things to consider when facing this issues.
It is better for a married couple to file bankruptcy together. However, sometimes there are circumstances that may make it a good idea to file alone. First, if you believe your spouse will lie or leave information out on a joint petition, refusing to be on the same bankruptcy petition is simply protecting yourself. Committing perjury on a bankruptcy petition is a serious offense that can lead to five years in federal prison. You may also choose to file separately if your spouse owes no debt, including joint debts, and has no liability.
There can also be several disadvantages to filing separately. First, even if you choose to file alone, your spouse’s income will still be considered. This may cause your total income level to fall above the income thresh hold for Chapter 7 or can increase the minimum payment needed to fund a Chapter 13 Wage Earner Plan.
If there is any chance the other spouse will be forced to file bankruptcy at a later date, filing separately will be much more expensive for the family in the long run. The cost of adding the other spouse on a bankruptcy petition is minimal. However, once one spouse has already filed, if the other spouse files bankruptcy later they must pay for their own petition. This means one family may end up paying bankruptcy fees, which can be over $1,000, twice. This is a disaster for families facing true financial crisis.
Filing jointly also doubles your allowed exemptions. Filing alone significantly decreases your amount of eligible exemptions. Finally, Chapter 7 bankruptcy allows creditors to still seek payment from the other spouse on all jointly held debts. If the majority of your debts are held together as a married couple, then filing bankruptcy alone is unlikely to be of the assistance you need.
Filing Bankruptcy in Indianapolis IN is meant to provide financial relief to those who are struggling. An experienced attorney can review your options and determine the best course of action to provide your family with significant financial relief. Contact The Wright Law Group LLC for more information on bankruptcy options.
