Many married couples in Florida share their finances, including their debts. However, there may be situations where you wonder, “Can I file bankruptcy without my spouse?” Is this legal in Florida?
Yes. You can file for bankruptcy without your spouse, though they will likely still be involved to some extent. But before you file for bankruptcy, it’s crucial to speak with an experienced attorney first. The Florida bankruptcy attorneys at Loan Lawyers have helped many people through this process and can explain everything you need to know about filing for bankruptcy without your spouse.
When Should I Consider Filing Bankruptcy Without My Spouse?
Most couples in Florida choose to file for bankruptcy together. However, there are some situations where filing for individual bankruptcy may be the smart move. Those situations include:
- A spouse has significant debts that are solely in their name
- The couple has kept their finances separate and has the documentation to prove it
- There’s a prenuptial agreement that includes terms related to shared or individual debts
- One spouse has recently filed for bankruptcy and is not yet eligible to discharge their debts
- A couple is getting divorced
Filing Chapter 7 Bankruptcy Without My Spouse
Only individuals or couples who meet certain income limits qualify for Chapter 7 bankruptcy. If you and your spouse live in the same house, you have to include their income when you file your bankruptcy petition, which could mean you don’t qualify.
If you qualify for a Chapter 7 bankruptcy, you could have some or all of your individual debts discharged. Your creditors can still pursue legal action against you or your spouse for any debts you jointly own or that your spouse co-signed on (a car loan, home mortgage, etc.)
Filing Chapter 13 Bankruptcy Without My Spouse
A Chapter 13 bankruptcy works differently than a Chapter 7 bankruptcy. In both types of bankruptcy, once you’ve filed, creditors cannot continue to try to collect from you while the bankruptcy is pending. One advantage of a Chapter 13 filing is that federal bankruptcy law includes a “co-debtor stay” in Chapter 13 cases. This means your creditors cannot pursue legal action against your spouse for any “consumer debts.” As with a Chapter 7 bankruptcy, filing for an individual Chapter 13 bankruptcy means the repayment plan applies solely to your specific debts.
There are potential downsides to a Chapter 13 bankruptcy, though. Once you and your creditors agree on a court-approved repayment plan, not meeting the terms of that plan can have drastic consequences for you and your spouse. A single missed payment could cause the bankruptcy court to throw out your case, leaving you and your spouse at the mercy of your creditors.
How Can My Spouse Protect Him or Herself If I File for Bankruptcy?
Clear documentation of which spouses are responsible for individual or shared debts is crucial in any bankruptcy case but is particularly important when one spouse wishes to file for bankruptcy individually. These records can protect the non-filing spouse from collections actions by creditors and the potential negative effects of bankruptcy, such as a lower credit score.
Another way for non-filing spouses to protect themselves is to work with an experienced bankruptcy lawyer. Bankruptcy attorneys know the applicable laws in these cases and can guide couples on the best strategy to alleviate their financial stress.
Contact Our Florida Bankruptcy Attorneys for Help
Before filing for bankruptcy without your spouse, consult our bankruptcy and debt defense attorneys first. The team at Loan Lawyers has helped countless Floridians find their way back to solid financial footing, and we can guide you, too. Call us today for a free consultation on bankruptcy for married couples.
