Chapter 7 Bankruptcy And Married Couples
Chapter 7 bankruptcy is also referred to as liquidation bankruptcy as most of your assets are liquidated to pay off the debts. It is also an easy and the quickest way to file for bankruptcy. Chapter 7 bankruptcy can be filed by individuals, married couples, corporations and partnership firms. |
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When a married couple files for bankruptcy together then they can use the assets purchased jointly to dispose the debts that incurred in the due course of marriage. In this case, one spouse is able to keep some possessions and also maintain a better credit record. When married couples file for bankruptcy they do so under single filing fee. They do not have to incur double costs for the court fees.
Also, attorneys charge a single fee only when couples jointly file for it. However filing jointly has its disadvantages because if one spouse has a very good credit report, then he or she will be damaging it unnecessarily. If the married couple files for an individual bankruptcy, some of the assets can be saved by transferring it on the name of the spouse of who is not filing for bankruptcy. Also, one of them gets to maintain a good profile and credit rating. In case they need loans in future, at least one of them can have a good standing at the credit card companies.
However, the procedure for married couples and individuals is the same except that the assets disbursed are only taken after the marriage and not before that.
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