My answer is usually the same: Both if possible and if they both need bankruptcy relief.
Married couples can either file a joint bankruptcy or individual bankruptcies.
When married couples file a joint Chapter 7 or Chapter 13 bankruptcy, each person can have the eligible debt that they each owe individually and the eligible debt that they owe together wiped out at the same time.
Practically speaking, when you file a joint bankruptcy, you get to wipe out two people’s eligible debt for the cost of one. This cost typically includes attorney’s fees, filing fees, and the cost of debtor education courses.
When married couples file individual bankruptcies, each person can have the eligible debt that they owe individually and the eligible debt that they owe together wiped out as they would in a joint case. However, married people that file separately each end up having to pay the cost to file individual bankruptcy cases.
Practically speaking, when married people file bankruptcies individually, they pay twice the cost to receive the same bankruptcy relief as they would have had they filed a joint bankruptcy.
That being said, there are times when it makes sense to not include your spouse on your bankruptcy petition. Maybe your spouse does not have any individual debts and you don’t have any joint debts. Every person’s case is unique, and you need the guidance of an experienced bankruptcy attorney that can advise you on what makes sense for you.
When you are ready, reach out to one of our experienced bankruptcy attorneys by going to www.lifebacklaw.com. Your future self will thank you!