Filing for bankruptcy in Oklahoma is a complex and difficult decision as an individual, but it’s even more complicated when you’re married. In many situations, it’s actually more advantageous to file jointly for bankruptcy.
While the process of filing for bankruptcy is similar in both cases, there are important differences between joint and individual bankruptcy filings that can impact both parties involved.
Joint Bankruptcy Filings
When a married couple files for bankruptcy jointly, they are both responsible for their debts and both will receive a discharge of those debts. This means that if one spouse has debts that the other spouse is not responsible for, those debts will still be included in the joint bankruptcy case. This can be an attractive option for couples who want to simplify the process and eliminate their debts together.
However, there are some potential drawbacks to joint bankruptcy filings. For example, if one spouse has a higher income or more assets, they may be required to pay more into the bankruptcy estate and their exemptions may be reduced. Additionally, if one spouse has a prior bankruptcy case, this can impact the joint bankruptcy case and the discharge of debts.
Individual Bankruptcy Filings
When an individual files for bankruptcy, they are solely responsible for their debts and will receive a discharge of those debts. This can be a good option for individuals who have debts that their spouse is not responsible for or for those who have assets that they do not want to include in the bankruptcy case.
However, individual bankruptcy filings can be more complex than joint bankruptcy filings and may require the help of an attorney to navigate the process. Additionally, if the individual has a spouse with a high income or assets, their bankruptcy case may be more difficult to complete and their exemptions may be reduced.
Impact on Both Parties
It’s important to consider the impact that a joint or individual bankruptcy filing may have on both parties involved. For example, if one spouse has a higher income or assets, they may be required to pay more into the bankruptcy estate and their exemptions may be reduced. Additionally, the impact of a joint or individual bankruptcy filing can affect a couple’s credit score, ability to obtain credit, and financial stability.
Free Consultation: OKC Bankruptcy Lawyers
Understanding the differences between joint and individual bankruptcy filings and the impact on both parties is critical in order to make the best decision for your financial future. If you’re considering bankruptcy in Oklahoma City, it’s important to consult with an experienced bankruptcy attorney in OKC who can help you understand the options available to you and guide you through the process. For a free consultation, call Debt Line’s Oklahoma City bankruptcy lawyers at (405) 563-7888 or (888) DEBT-LINE to see what our Oklahoma credit repair lawyers can do for you.