Joint bankruptcy – Is this a Good Idea?

bigstock Happy Young Couple At Meeting  5048241 Joint bankruptcy – Is this a Good Idea?Joint bankruptcy is when a husband and wife file for bankruptcy together or “jointly.” Before you decide on whether you should file individually or joint, you need to look up the pros and cons of the situation as well as, keeping in mind what your ultimate long and short term financial goals are.

The Disadvantages

-    If one spouse filed for bankruptcy earlier he/she cannot file under joint bankruptcy
-    If the husband-wife combined debt exceeds the limit permissible under Chapter 13, you cannot file under joint bankruptcy

The Advantages

-    Saves money on legal counseling fees
-    Each spouse can file for personal exemptions and thereby protect more assets together
-    Collection agencies will not hound one spouse with requests for payment
-    Easier to file for joint bankruptcy than to file separately

Review information carefully for all the advantages and disadvantages of filing bankruptcy through online research. You may find that many terms are different depending on where you live. You also need to contact a bankruptcy expert to receive case specific advice about your financial situation. Be careful when you make this decision since this will affect both spouses credit reports. Your decision should take into account your goals, assets, future financial obligations and the affect this decision will have on both spouses as well as any children in the family.

Source:  Joint bankruptcy – Is this a Good Idea?

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