What does joint bankruptcy mean?
It’s where you file with your spouse. Joint bankruptcies are very common.
But did you know you have the option to file as an individual too? Just because you are married does not mean you have to file joint bankruptcy.
There are advantages to each. It’s wise to consult with a good bankruptcy lawyer in the Georgia area who can help you choose. This post is a good crash course on filing jointly, but not in the place of professional counsel.
Advantages and Disadvantages of Joint Bankruptcy
It’s a big decision to file bankruptcy jointly, but thousands do it every year, for reasons such as medical, foreclosure, or credit card debt. There are, as with all bankruptcies, advantages and disadvantages.
You can expect costs to go down for a joint bankruptcy. The fees to file jointly are about the same. Also, if you have debts you and your spouse owe, the spouse may be forced to pay the debt if you file individually, and handle creditors until the bankruptcy is in motion; if you file jointly this problem disappears. Lastly, the paperwork is much easier if you file jointly. It’s about half as much.
Now, there are many reasons to not file jointly. This may be the case where you have a lot of credit card debt, but that was before you were married or you wish to handle it yourself. If you have high credit card debt, and your spouse has perfect credit, the spouse may not want a bankruptcy on file. These lasts up to 10 years.
Also, you may not be eligible to file with a spouse in some cases, such as if the spouse has a recent bankruptcy. There are many other reasons, such as if property you own in excess of bankruptcy limits is protected by creditors.
Joint filing has many advantages over individual bankruptcy, but in some situations you may have trouble successfully filing. This is mainly because of the Bankruptcy Code. This code states eligibility rates are based on the states median income. If you have more than the Georgia median income for a family your size, you cannot file Chapter 7. For example, if the two of you have no children and combined gross $100,000, you are not eligible, though you are for Chapter 13 in most cases.
There are many more things of note, but it’s important to remember bankruptcy itself is a common practice where you as an individual often lose little to nothing. The first step is not filing, but hiring a Georgia attorney to represent you in court.
What should you look for in a Georgia attorney?
You want your questions answered.
You want a knowledgeable voice in court.
You want one who is affordable.
You want one not overburdened with cases.
