During the pandemic, you and your spouse might have faced hardships that caused you to become delinquent on your mortgage payments and credit cards bills. And as the charges continue to pile up, you may have no other choice than to file for bankruptcy. However, it can be difficult to discern whether it is better to file separately or jointly. If you are in this situation and are not sure where to turn, Chapter 13 bankruptcy attorneys can give you guidance to help you decide which filing will work best for you.
At CMC Law, we will provide the assistance you need so you can become debt-free.
Filing for Chapter 13 Bankruptcy
According to Chapter 13 bankruptcy attorneys, Chapter 13 is a type of bankruptcy in which you consolidate your debt into a monthly payment plan that will be distributed to your creditors over a three to five year period. Doing this allows you to retain possession of your property and assets. Once you have completed your payments, your debt will be fully resolved.
Determining if You Should Submit a Joint Filing
When deciding if you should submit a joint filing, there are many factors Chapter 13 bankruptcy attorneys advise you to consider. First, you should review the assets and property owned by you and your spouse. In a joint filing, both your separate and community assets will be included in your petition. If you qualify for double exemptions, then a joint filing may enable you to retain the majority of your property. Should you elect to file separately, then your spouse’s assets will not be included in the bankruptcy. So, this will be the better option if your spouse owns non–exempt property that you would like to protect.
Chapter 13 bankruptcy attorneys recommend evaluating costs and convenience when determining if you should file for joint bankruptcy. Since attorney fees and filing costs associated with bankruptcy are the same no matter what filing you choose, a joint filing will be much more cost-effective than a separate filing. Also, you and your spouse must provide a vast amount of information regarding your financial history to the trustee in your case to prepare for your meeting of creditors. If you file a joint bankruptcy, you will only be required to submit one set of documents and attend a single hearing, which will save you time and effort.
You must also consider your credit score when deciding if you should file for joint bankruptcy. If you pursue a joint filing, each of your credit scores will decrease as a result of the bankruptcy, though they have the potential to rebound at a quick rate. However, if you or your spouse has outstanding credit and the bankruptcy filing is to resolve only one spouse’s debt, then a separate filing would be the optimal choice.
Work with the Chapter 13 Bankruptcy Attorneys at CMC Law
Filing for bankruptcy is never easy, especially when it affects you and your spouse. Understanding this delicate and challenging process, the Chapter 13 bankruptcy attorneys at CMC Law will be by your side to ensure you choose the right filing that sets you up for a future you can look forward to.
Contact us today to schedule a free consultation.
At CMC Law, we will use our superior services to advocate for your best interests.