Using Bankruptcy to Overcome Unmanageable Debt

Jan 20, 2016 by

Many people consider filing for bankruptcy as among the best choices to deal with debts, but it should be noted that in some types of bankruptcy you might end up losing a significant amount of your property. Aside from choosing which type of bankruptcy best suits your circumstances, marriage or divorce should also be considered and examined since they can greatly affect the outcome of the bankruptcy. In order to secure your joint finances, the website of the Fayetteville bankruptcy lawyers of the Bradford Law Offices, PLLC says that it is a important to get yourself acquainted with the necessary information to better equip yourself for the long and meticulous process ahead.

The first thing to understand marital bankruptcy is that the debts incurred bearing the names of both spouses are the only ones that will be considered in a joint bankruptcy case. There are a lot of misconceptions that make people think that both spouses are automatically liable for the debts they acquired. If you and your spouse have filed for bankruptcy, the only debts that the court will address are those that bear both of your signatures. Any debts that one spouse on their own before the marriage and even after marriage (provided that they alone are the signatory) are not legally shared and will be his or her own responsibility.

If one spouse, such as the husband, files for bankruptcy and the debt is jointly held by both spouses, only the husband’s debt will be discharged; the wife will still have the legal responsibility of paying off her part of the debt. The bottom line is – any debt you incur will be your own responsibility. If you file for a bankruptcy on a joint debt, you will end up turning over the responsibility of paying for the debt to your spouse. If one spouse files for bankruptcy, the other spouse’ personal assets and properties are beyond the bankruptcy trustee’s jurisdiction and will not become part of the bankruptcy estate of the spouse who file the case. This is the reason why it is better to file a joint bankruptcy case rather than on your own or separately.

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