Joint Bankruptcy Lawyer in Michigan
Filing Bankruptcy When You Are Married
If you are currently married in the state of Michigan, you may be wondering whether or not you and your spouse are obligated to file a joint bankruptcy petition. While most couples have incurred shared debt over the course of their marriage, it is not a legal requirement that both spouses file together.
Rather, all married couples can explore the following debt relief options:
- File a single bankruptcy petition together
- Allow one spouse to file individually
- Allow both spouses to file separately
- Pursue an alternative course of action
Before making the decision to file together or separately, however, it is important to weigh the pros and cons. There are numerous factors that should be taken into consideration when mapping out a practical course of action, so it is highly recommended that you discuss your financial situation with a Michigan joint bankruptcy lawyer from Hensel Law Office, PLLC before moving forward.
Call (888) 258-0651 or contact online to get assistance with the filing for joint bankruptcy in Michigan.
How Does a Joint Bankruptcy Filing Work?
In a joint bankruptcy, you and your spouse will be asked to list all of your debts in a single petition—including those owed individually and those shared. You would then submit one set of paperwork to the bankruptcy court, including all of the property that you would like to protect from inclusion.
Once the bankruptcy process has been completed, you should be able to wipe out both parties' dischargeable debt without having to file two separate petitions. While this can be extremely beneficial for a number of reasons, a joint bankruptcy may not be right for everyone.
The Benefits of Filing a Joint Bankruptcy Petition
When deciding whether or not to file a joint bankruptcy petition, whether filing for Chapter 7 or Chapter 13, it is important to take several different factors into consideration.
First, you should address the positive aspects:
- Joint Bankruptcy Will Save You Time & Money - Whether you decide to file together or individually, the bankruptcy filing and attorney's fees will be the same. This means that you could save time and money if you and your spouse file jointly.
- Joint Bankruptcy Eliminates Both Parties' Debt - Since both spouses would be responsible for repaying any shared debts incurred over the course of their marriage, it may be counteractive for one spouse to file individually. The non-filing spouse would still be liable for their separate debts and their share of any joint debts that were not discharged during the bankruptcy.
- Joint Bankruptcy is More Efficient - Filing for bankruptcy is no simple matter. You must provide extensive financial documentation in your petition, and you will be required to attend at least one hearing with a bankruptcy trustee. For this reason, it may be more efficient for you and your spouse to file jointly, as you would only be required to do this once.
- Joint Bankruptcy Protects More of Your Property - In the state of Michigan, married couples that file a joint bankruptcy petition will be allowed to protect more of their property. For example, you and your spouse could each exempt up to $3,250 in motor vehicle equity.
Explore Your Joint Bankruptcy Options
If you are interested in filing a joint bankruptcy petition, it is highly recommended that you consult a bankruptcy attorney first. While this process can be advantageous for many couples, you should not hesitate to explore all of your options before making a final decision.
For this reason, the legal team at Hensel Law Office encourages you to contact our firm today for a free consultation. In doing so, you will have the chance to discuss your goals and concerns, develop an effective plan of action and begin taking steps toward a debt-free future.
When you call our office at (888) 258-0651 or contact online, you will have the opportunity to schedule an appointment with our very own attorney Thomas Hensel.