When is it Wise to File Bankruptcy Separately From My Spouse?

If you want to file bankruptcy in Missouri or Illinois without your husband or wife, you can. In fact, it may even be a wise move. Filing together requires a joint petition, which includes all the debts you both have, whether they are separate or marital. Filing separately would only require the debts of the filing spouse.

Are there good situations in which to file separately?

- Any debtor in the life of a bankruptcy must first ask the court's permission to incur more debt. Having one spouse uninvolved could allow you to still incur debt as a couple, if needed. This is a path to consider if, for some reason, you need to incur debt in the immediate future.

- If the debt that needs to be eliminated mainly belongs to one spouse, you may not even need to involve the other one.

- In my experience, divorce or separation can complicate a bankruptcy a bit. Why? A joint bankruptcy case means compromise and commitment to making decisions together. Making joint decisions is not easy when you are having marital problems. Just filing separately from the start may be in the best interest of both of you and help you avoid disagreements.

- If for some reason one spouse wants to wait to file bankruptcy, you can file separately at different times.

But before you jump into filing separately, make sure you know the possible after effects of doing so. For example, your non-filing spouse may be subject negative creditor action. One spouse may benefit from the bankruptcy protection but the other spouse may be left unprotected from creditors if you have joint debt.

These are the kind of questions for which a free consult with a bankruptcy attorney was created. There isn't an easy solution when it comes to deciding whether it is better to file separately or jointly. An experienced St. Louis bankruptcy lawyer, though, can predict the outcomes of both decisions and help you decide which move is the wisest to make.

It also wouldn't hurt for you and your spouse to gather all the right information about bankruptcy to make sure you are making an educated decision. Find discussions, articles, and even free publications from lawyers that are highly experienced in your area to start your own education.