Chapter 7 Bankruptcy And Married Couples
Chapter 7 bankruptcy is considered to be one of the most common options for bankruptcy, and is also known as "liquidation bankruptcy". It can be one of the easiest and quickest ways for most people to file for bankruptcy.
Chapter 7 bankruptcy is available for married couples, individuals, partnerships and corporations.
Congress modified this section of the Bankruptcy Code to offer discharge or conversion of a Chapter 7 case upon a finding of “abuse” by an individual debtor or married couple with “primarily consumer debt.” If the court grants your bankruptcy petition, a court trustee decides which of your assets you can keep. These are called exempt assets. A federal code pertains in all states, and you can select whether to have your assets reviewed under the state or federal guidelines.
If a married couple is facing the prospect of Chapter 7 bankruptcy, one person can file bankruptcy and have the marital debt discharged and taken against the marital assets. One spouse is able to preserve their possessions and maintain a better credit record.
Also, married debtors can file a joint bankruptcy petition for a single filing fee, and most attorneys charge the same legal fee for joint cases as they do for individual cases. Married couples who are jointly liable on most debts should file a joint bankruptcy. On the other hand, if only one spouse is liable on most of the debts, the indebted spouse may file an individual bankruptcy, and in most cases, the individual debtor's bankruptcy will have no adverse effect on the non-filing spouse.
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