Marriage is a blessing, but it always comes with challenges. Money can be a sensitive topic if you don’t see eye to eye on savings and spending, and if you’re in debt, things can get very stressful. If your debt has grown to the point where you decide to file for bankruptcy, you will need to work together as a team for a fresh start. While most couples decide to file together, if the spouses have very different incomes or debts, it may be best for only one person to file for Chapter 7. How you decide to file will determine which of your income and property will be listed. . Means Test. In order to provide the best financial results and protect your assets, we will use marital adjustment deductions.
Base
Filing bankruptcy isn’t just about paying off your debt; it is also important to do everything possible to protect your hard-earned property and assets. When only one spouse files for bankruptcy, we may deduct a portion of the non-applicant spouse’s income which is used to cover personal expenses. We can deduct their cell phones, club memberships, business expenses and entertainment. In addition, any debt in its own name will not be included in your case. This could be a student loan, credit card, car loan, insurance, or mortgage solely in their name. Child benefits for their own children who don’t live with you, as well as benefits they pay for, will not be included in your case. You can also divide the expenses you share, such as utilities or a shared mortgage, and subtract their share. The goal of all of this is to lower the total income we use for the Means Test, which could mean the difference between Chapter 7 or Chapter 13.
Squared Away Document
When you use standard deductions and marriage adjustments, you will provide the court with documentation so they can easily review your case. Documents must be organized and clear, showing who is responsible for which debts and expenses, so that the courts have no reason to bar the exceptions we want. There will be no reason to worry that your case will be dismissed or the trustee will even suspect Bankruptcy Fraud.
Finding an attorney who can help with all the paperwork and knowing your case will take the stress out of filing and hopefully bring joy back to your marriage.