Before we go into the joint bankruptcy tips, you might want to know the differences between individual and joint bankruptcy. Simply put, couples gain advantages when they file Chapter 7 or Chapter 13 bankruptcy together, namely by protecting your spouse from owing your debts and saving on fees. In some cases, individual bankruptcy may be better, especially when most of the debts were created by one person before the marriage. In other cases, one of you filed recently, and therefore has to wait to file bankruptcy again.
Now let’s go over some bankruptcy tips.
Know Your Rights
Families often do not know their rights when it comes to filing joint bankruptcy, much like regular bankruptcy. For example, you can stop creditor harassment, save your assets from being taken, and be discharged from debts. It depends on which form of bankruptcy you file. But first, hire the right lawyer.
Hire a Lawyer
Lawyers seem to have a big price tag when you see them on TV or read in newspapers, but the good ones are down to earth men and women who can help you in a variety of ways. Joint bankruptcy can be complicated, and no post or article can really explain all the details. However, a consultation with a lawyer, who can look over your financial problems, can lead to some new hope for your finances. As noted, you and your spouse may not be eligible at all; you may make too much money together, or one of you perhaps filed before so only the other can file. These laws can seem complex, but a lawyer’s job is to educate you and help.
Know the Differences in Laws
Depending on your current income, there are some key differences in filing together. First of all, if you are eligible to file together, you can quite often discharge tens of thousands of dollars or save major assets from being taken. Technically, filing together can save you time and money. You pay only one filing fee, which saves you several hundred dollars, it might save you time in filing the paperwork, and the lawyer fee can sometimes be less.
How to Discharge the Most Debt
If you and your spouse file Chapter 7 bankruptcy together, it’s important to know the laws so you can successfully discharge the majority of your debt. Some debts, such as taxes, alimony, and child support, cannot be discharged. You can technically discharge your mortgage debt, but you may want to keep the home. The big reasons for filing Chapter 7, credit and medical debt, can change your financial standing in a matter of months. If you have a $100,000 medical bill hanging over your family’s head, you can often discharge it.
How to Save Your Home
If you want to keep your home and file bankruptcy, you may consider joint Chapter 13 bankruptcy. This can stop a foreclosure before it begins, along with stopping all other collections against you. If you have an expensive family home, other properties, and one or more cars, you likely want to keep them. If you and your spouse are working, but need some help in making payments, a joint Chapter 13 bankruptcy can buy you time and save you money.
