Actually, even married couples aren't exempt from this scenario, and a lot of them get bankrupt before they even take the necessary steps to prevent it. In this context, spouses could actually either file bankruptcies individually or file a joint bankruptcy. Both of these things have their own advantages and disadvantages, that's why careful consideration is supposed to be exercised based on the financial situation and according to what an individual or joint bankruptcy can do.

 

Firstly, filing for bankruptcy has become quite expensive, considering the fact that people who chose that course of action already have debilitated finances. So if you're filing for joint bankruptcy, you and your spouse could save more money for attorney fees because you'll file one joint bankruptcy petition instead of two separate individual bankruptcies. And since joint and individual bankruptcy have the same fees involved, you and your spouse could save 50 percent more. Further, once the joint bankruptcy has been filed, both of the spouses can have all of their dischargeable debts wiped out as one. If only one of the married couple files for a bankruptcy, the other non-filing spouse could still be held liable for his or her individual debt and a portion of any joint debts.

 

Lastly, filing an individual bankruptcy requires an extensive list of documents involving your finances like your income, assets, properties, expenses and debts. Additionally, you'll have to attend a meeting with the bankruptcy trustee at least once. Addressing those problems, filing for a joint bankruptcy is more efficient, since you only need to gather your joint financial documents at once as a requisite for the petition and you'll attend the meetings together, eliminating unnecessary time and money wastage.

 

Of course, filing for joint bankruptcy also has its disadvantages. For one, it could be possible that you and your spouse's combined properties can't be exempted. These types of personal property and assets that creditors can't take in order to satisfy the debt may not be enough for joint ownership. Still, some states could double the bankruptcy exemptions using the federal bankruptcy exemptions when filing a joint bankruptcy. If this can't be used, it is still possible to double your exemptions if the state where you live in allows it. Besides, if your spouse had a history of filing bankruptcy in the past and the period before your spouse can file for bankruptcy is not yet past, the law won't let you file for bankruptcy together, forcing you to file individually.