In many cases, married couples can and do file for joint bankruptcy. They are not obligated to do so, as it is possible for one spouse to file on their own. But filing together is very common, and there are some benefits to doing so.
For example, the filing fee for a joint case is no different than for a single filer. If two married individuals filed separately, they would essentially double their filing fees. By filing together, they only have to pay the fee once, making bankruptcy a bit more cost-effective.
Protection from creditors
Additionally, many married couples have joint financial obligations, such as shared credit card accounts, car loans or a mortgage that they took out together. They are both responsible for these payments, and they are both on the financial documentation.
As such, if they file together, they both receive protection from creditors when the automatic stay is issued by the bankruptcy court. If only one person files, the automatic stay applies to that individual’s liability, but creditors could still pursue the other spouse for repayment.
What about unmarried partners who want to file?
Many people live together without getting married, and they may have shared financial obligations. Some couples have been living together for years or even decades, and they may have children together. However, it is important to note that unmarried partners cannot file for bankruptcy together. They must file separate cases, though joint administration may be possible.
Your bankruptcy options
This helps demonstrate some of the bankruptcy options you have. Be sure you know what legal steps to take moving forward.