What to do When You're Considering Filing Bankruptcy With Your Spouse
If you or your spouse are considering bankruptcy it’s important to consider your options. Living in New Jersey, a component you will want to contemplate is whether you will file individually or together with your significant other.
To answer that question, there are several other questions you will need to answer and finances you will have to examine to understand which route is best for all parties involved.
What Amount of Debt is Shared With My Spouse?
You must consider the amount of debt that is shared versus the amount that is owed by one individual. If much of your debt is shared, it could be advised that you consider filing together. This will allow for each person to receive debt relief from all debts included in the bankruptcy filing. If you and your spouse decide to move forward in the other direction (filing individually) the person not involved in the bankruptcy claim will become responsible for those debts shared.
What Assets Are Shared With My Spouse?
Another factor that we advise you to consider is the assets that are shared by you and your spouse. Do you own a home together? Do you have a vacation property? Are you a landlord of a property that you rent to others? It is important to consider these types of assets and whose names are on the titles of each.
How Will Filing for Bankruptcy Effect My Credit Score?
Once you file bankruptcy, you will see a negative impact on your credit score (don’t fret, this is temporary). If you and your spouse are filing together, both scores will be affected. If you’re filing individually, your spouse has no need to worry about their score changing.
It’s important to understand that filing for bankruptcy is about starting over and getting in control of your financial future.
Now that you’ve asked yourself some of these initial questions, if you’re still uncertain or know you need to move forward with filing, contact us at Cerbone Law Firm. Our attorneys have assisted many couples with what feels like the unnerving thought of bankruptcy.