Miami Bankruptcy Attorney Blog

If you are thinking of filing for bankruptcy in Florida and you are married here is what you need to know:

There are three types of way that a married person can file for bankruptcy in Florida:

Both Spouses File For Bankruptcy – The first option would be that both spouses file for bankruptcy.  In this instance each spouse can include his or her debt whether owed jointly or solely.  Debtors will be allowed to take double the allowed bankruptcy exemptions.  When filing jointly BOTH INCOMES are included in the bankruptcy as well as their combined expenditures.

Married and not Filing Jointly  Same Household-  The second option on filing for bankruptcy when married is “not filing jointly without declaration of separate household.”  What that basically means is that you are married and you live in the same house as your spouse, however your spouse will not be filing for bankruptcy with you.   Because the spouse still lives with the filing debtor BOTH incomes must be included as well as both expenditures.   In this instance the filing debtor will be able to discharge his or her debt but not the debt of the spouse.  The non-filing spouse’s credit will not be impacting by their partners’ bankruptcy.   The benefit of not filing jointly is that any asset that is titled in both names or is owned jointly is fully exempted in the bankruptcy.

Married and not Filing Jointly, with Declaration of Separate Household – The third option for filing for bankruptcy when married is “with declaration of separate household.”  What this option basically says is that the debtors are separated and live in separate households.  The debtor must be willing to swear in court that the information is correct.  This third option allowed the debtor to only include his or her income and doesn’t require the debtor to provide the income of the spouse that is not living with them.

If you are married and thinking of filing for bankruptcy in Florida then please contact Shmucher Law, PL at 305.741.5553 or 954.309.5559 to schedule a free consultation in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

With the divorce rate in America at an all-time high, we can assume that part of the problems in the marriage involves the marital debts.  Some of these couples will eventually need to file for bankruptcy, but the big question is should they file for bankruptcy BEFORE their divorce is complete or wait till the divorce is over and then file?

The following are some reasons that a debtor should consider filing for bankruptcy BEFORE the divorce is complete.  (these factors suggest that the debtors will file a joint bankruptcy).

1. The filing of a joint bankruptcy prior to filing for divorce will allow each debtor to have a fresh start post bankruptcy, which basically means that they will have all of their unsecured debt eliminated, giving each debtor a clean slate.
2. Some of your post bankruptcy debts are NON-DISCHARGEABLE.  Non-dischargeable refers to debts that survive the bankruptcy.  With regard to a divorce, any alimony debt/payment is non-dischargeable.
3. If the debtors complete the divorce and then one spouse files for bankruptcy they leave the other spouse on the hook for the debt.  Example X and Y get divorced.  Y files for bankruptcy and discharges unsecured debt that Y and X were co-debtors on.  Once Y files for bankruptcy on that debt then the creditor will pursue X for the payment of the debt.
4. It’s CHEAPER!!  When debtors are married they are allowed to file a joint petition which allows two debtors to file together for ONE price.   However once the divorce is complete each debtor must file their own bankruptcy forcing them to pay twice (one for each debtor).

If you are thinking of filing for bankruptcy and would like to schedule a free bankruptcy consultation in one of our five Florida offices in Boca Raton, Fort Lauderdale, Miami, Plantation, or Sunrise Florida then please give Shmucher Law, PL a call at 954.309.5559 or 305.741.5553.