The Special Considerations Of Joint Bankruptcy

bigstock Distressed Couple Angry With S 7137786 The Special Considerations Of Joint BankruptcyThe section 302(a) of US Bankruptcy Code allows for married couples to file for joint bankruptcy. This special clause can be very beneficial to couples who need to file for bankruptcy because, although, these are two different bankruptcy cases, they would be treated as one in the eyes of the Court. As a result, there would be only one filing fee to be paid to the Court, which in and of  itself is a significant saving.

The lawyers too, would charge one fee, as he/ she would be defending only one case instead of the two cases for each of the individuals in the marriage. This clause is also highly beneficial when the majority of the debts of each individual are common to both spouses.

In the event one spouse does not agree to file under joint bankruptcy, the non-filing spouse could be protected from collection attempts as long as the filing spouse qualifies to file under Chapter 13 of the US Bankruptcy Code. The non-filing spouse could invoke the co-debtor stay under Section 1301 of the US Bankruptcy Code.

Source:  The Special Considerations Of Joint Bankruptcy

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