For those Tennesseeans dealing with debt, things may seem all wrong. With bills bogging you down, every facet of your life may become weighed down. Bankruptcy may seem like the proper course of action.
Married couples dealing with money woes may believe that if one declares bankruptcy, the other must as well. This is not necessarily the case. Although it may wind up better for both spouses to file together, it does not have to happen this way. Let the knowledgeable and friendly staff at Ben Sissman, Attorney at Law, educate you on how the option of filing solo may work for you.
What kind of debt do you want to wipe out?
There are different kinds of debt that people accumulate over the years. Depending on the type each spouse holds, it may work better for one to file bankruptcy and not the other. For instance, if one spouse has fallen behind in credit card payments, and these cards do not belong to both, the cardholder may want to try to file Chapter 13 to get a payment structure that will work. When the debt that needs handling has only one spouse’s name on it, consider individually filing for bankruptcy.
Do you own property together?
Tennessee bankruptcy laws do not allow the use of federal exemptions. Filers must use state exemptions only. One thing that may stop one spouse from filing for bankruptcy is if they own property together. Anything with the filer’s name attached is fair game for a trustee in a Chapter 7 proceeding. However, under the state laws, if both spouses file, they get double the allowable exemptions. Thus, if they own more than one piece of property jointly, then there is the possibility of keeping at least two.
To understand the process more fully, take a look at our website.