Can One Spouse Declare Bankruptcy Without the Other? | TX

 Posted on September 29, 2024 in Bankruptcy

You can file bankruptcy with or without your spouse. Most married people who are not legally separated file for bankruptcy at the same time. Both parties’ finances are usually closely entwined in a marriage, meaning that if one party is struggling financially, so is the other.

However, there are some situations where only one spouse needs to declare bankruptcy. If you are married and considering filing for bankruptcy, it is important to understand how bankruptcy can affect both you and your spouse. You should speak to an experienced Brazoria, TX bankruptcy attorney who can assess your specific situation and help you move forward.

Why Would Only One Spouse Need Bankruptcy? 

The most common reason why one spouse would want to file bankruptcy without involving the other is the existence of premarital debt. For example, say you took out a credit card when you were 18 years old and quickly maxed it out, then fell into a cycle of using payday loans as a recent college graduate, years before you met your spouse. You have not been able to pay it off yet due to high interest rates and a lack of disposable income. In this case, the debt is likely yours alone and there is no need for your spouse to join you in filing for bankruptcy, especially if he or she has little or no debt attached to his or her name.

Another common reason for only one spouse filing for bankruptcy is that the parties are legally separated or simply have not lived together for a very long time. In this case, each spouse has his or her own financial life that the other is probably not involved in.

Qualifying for Chapter 7 Bankruptcy While Married

If you and your spouse are living together, information about your spouse’s income will be considered in the means test. This is so people with high-earning spouses are limited in how they can approach bankruptcy when the married couple jointly has the means to repay debt. If you are separated and your spouse is not a member of your household, his or her income might not be counted against you during the means test.

Texas is a community property state, which means that anything you or your spouse has acquired after marriage is presumed to belong to both of you equally. This can further complicate matters if you are considering liquidation bankruptcy and you are still married, especially if your spouse is a high earner. If you are hoping to file for bankruptcy without getting your spouse involved, the best thing to do is meet with a Texas bankruptcy attorney to talk about your options.

Contact a Brazoria, TX Bankruptcy Attorney

The Fealy Law Firm, PC provides compassionate representation to people with insurmountable debt. Dedicated Brazoria County, TX bankruptcy lawyer Vicky Fealy will guide you through the process of filing for bankruptcy with or without your spouse. Contact us at 713-526-5220 for a complimentary consultation.