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Can one spouse file for bankruptcy? Married people filing for bankruptcy in Ohio have the option of filing with or without their spouse. There are advantages and disadvantages to both options, so deciding whether you should file for bankruptcy alone or together depends on your situation and needs.

If you do file individually, it must be done in good faith. The bankruptcy court will examine your circumstances; if it determines that filing on your own was not done in good faith, it may dismiss the case without discharging your debts. If you don’t file properly, even the non-filing spouse may be stuck with unexpected debts. To make sure everything is done correctly, you should consult an attorney who is experienced in Ohio bankruptcy laws and can help you decide whether you should file on your own or jointly.

What Are the Advantages of a Spouse’s Filing Individually?

If you are married, you may file for bankruptcy individually and your spouse does not have to file. This may be the best option in certain situations. For one thing, because Ohio is a common-law state, not a community-property state, when you file individually, only property held by you or jointly by both spouses can be sold to pay creditors. Property held by your spouse alone will not be affected.

Property belonging solely to the non-filing spouse will not be forfeited when the other spouse files for bankruptcy individually.

According to the bankruptcy code, here are some situations where it is best for one spouse to file for bankruptcy individually:

  • One spouse has already filed for bankruptcy in the past 8 years, but the other has not.
  • One spouse has all the debt and the other has none, or one spouse has debts that are not dischargeable.
  • One spouse owns assets free and clear and doesn’t want to lose them.
  • One spouse has a clean credit record and doesn’t want that damaged, and that spouse has not cosigned on the filing spouse’s debts.

However, the bankruptcy court will examine factors such as total household income and total household expenses to make sure that the filing spouse is the one who should be filing for bankruptcy. For example, your spouse might have run up bills while remodeling the house, but since you are living in it as well, you are also responsible for any liens contractors may have put on it.

Are you drowning in debt in Ohio even though your spouse is financially stable? You may have the option to file for bankruptcy to fix your finances without hurting the finances of your spouse. Contact our law firm at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to discuss your options with an experienced bankruptcy attorney.

Disadvantages of One Spouse’s Filing Alone

There are benefits to filing a joint bankruptcy that you will lose if you file individually. These include:

  • If the debt is in both your names, your spouse will still owe the money even if you bankruptcy.
  • Ohio law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted, in effect giving you “double” exemptions.
  • If you have a loan on a property such as a car or home you wish to keep, and you are current on the payments and the equity is covered by your exemptions, you may continue making payments on the loan and keep this property through bankruptcy.
  • If the spouses have joint debts, the fact that one spouse discharged the debt may show on the other spouse’s credit report.

Be aware that if you do file jointly, you must include your combined income in the bankruptcy. Since there are income limits to filing for Chapter 7, if your joint income is too high to meet the Ohio means test, then you may not be able to qualify, and you will have to file for Chapter 13.

Filing for joint bankruptcy offers separate benefits from filing individually. You can only take advantage of one of those sets of benefits, so you need to choose wisely.

How an Experienced Ohio Bankruptcy Lawyer Can Help

When you come to Fesenmyer Law Offices, LLC for a free consultation, we will take the time to help you determine how your unique situation can be corrected. Not only will we determine whether bankruptcy is the right choice to help you recover from your financial difficulties, but we will also help you determine what type of bankruptcy is the right solution and whether you should file alone or jointly with your spouse.

Our legal team will guide you through the bankruptcy process from start to finish.  We will file all of the necessary forms with the court, attend your bankruptcy hearing with you, and guide you through the entire process.

Get Help Today – Contact Us for a Free Consultation with an Ohio Bankruptcy Lawyer

When you are in financial trouble, bankruptcy can potentially get you out of a hole and return you to financial solvency. However, filing for bankruptcy becomes complicated when you want to file independently while married. The bankruptcy lawyers at Fesenmyer Law Offices, LLC can help you navigate these tricky bankruptcy laws.

Delaying can only worsen your situation, so contact us online or call the Ohio bankruptcy attorneys at Fesenmyer Law Offices, LLC. Call 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) today for your free consultation so we can determine what debt relief solutions will work best for you.

Attorney Tom Fesenmyer

Attorney Thomas M. Fesenmyer (Tom) is dedicated to helping his clients solve their financial issues in a timely and cost-effective manner. Tom has personally filed several thousand cases and has the expertise to achieve immediate results for his clients, including stopping Foreclosures, Repossessions, Wage Garnishments, Law Suits, Utility Shut-offs, Creditor Harassment, Bank Attachments, and Pay-Day Loans. Tom’s goal for all of his clients is asset protection and debt elimination.[ Attorney Bio ]

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