Can You File for Bankruptcy in Virginia Without Your Spouse?
As such one can consider filing for bankruptcy by not involving his or her spouse as the law does not prevent from doing so. However, there can be several factors that have to be considered by Virginia Beach Chapter 13 bankruptcy attorneys in Virginia. John W. Lee P.C can provide you with an experienced lawyer if you want to file for bankruptcy.
This type of filing will make sense, in case the financial status that exists between the partners is perfectly “clean,” in other words, all debts are existing in only one person’s name. However, to decide the correct approach, it will need many deliberations.
That is because filing any case without involving the other spouse can often be detrimental to the future of the marital and financial situation of the couple in many circumstances.
The following are a few reasons for filing for bankruptcy case without involving your spouse.
- You are keeping all your finances under a separate name, and have got proper documentation to show that
- There exists a certain prenuptial agreement between the two
- All debts are only in a single name only
- Also, one spouse has already filed bankruptcy but he or she is not eligible for any discharge from bankruptcy
- It is very likely that another spouse may receive very soon an inheritance in case any inheritance has been received within the next 180 days after filing. Then it will become also part of the estate of bankruptcy. So your trustee may use that money for paying creditors
- You will like to ensure that your spouse has got the ability for filing for bankruptcy in the future, in case it required
Let us take an example, where all the debts are existing only in the husband’s name and not in the wife’s name. Filing without including a spouse can protect the credit score of a wife in most cases.
However, your credit score will be negatively impacted in case joint assets exist and the bankruptcy will make it impossible to challenge to stay on those debts. Hence, your spouse will also remain as much responsible for all those debts.
Also, in which state you live can also affect the decision particularly if you are in any of these states:
- New Mexico
All your marital assets in the above states will become part of your “bankruptcy estate,” which will be generated as soon as you will file for bankruptcy. Here it will include assets and property of both the spouses, which implies that assets in the name of spouse will be included in the procedures.