Filing Bankruptcy Without Your Spouse: What You Need to Know

You can file bankruptcy without your spouse. Your filing affects only your debts. Your spouse’s credit and debts remain separate.

But individual filing doesn’t mean zero impact on your spouse. Joint debts remain your spouse’s responsibility after your discharge. You need to think through several factors before choosing individual or joint filing.

Can You File Bankruptcy Without Your Spouse?

Yes, you can file alone. Individual filing means only your debts get discharged. Your spouse keeps their credit intact and their debts stay unchanged.

Joint debts are different. Your spouse remains fully responsible for any debt you both owe. Creditors can still collect from them after your case closes.

Individual filing makes sense when most debt is in your name. It also works when your spouse wants to protect their credit score.

When Filing Without Your Spouse Makes Sense

Consider filing individually if these situations apply to you:

• All your debts are in your name only
• You have a prenuptial agreement separating all finances
• Your spouse expects to receive an inheritance soon
• Your spouse filed bankruptcy recently and can’t get another discharge yet
• You want to preserve your spouse’s ability to file later if needed

When Individual Filing Doesn’t Help

Some reasons people file alone don’t hold up under scrutiny. Your situation and your state’s laws determine the best approach.

Here are common misconceptions about filing individually:

• Protecting your spouse’s credit when you have joint debts. Your spouse’s credit score will drop anyway. Missed payments appear on their credit report too. Your discharge won’t stop debt collectors from pursuing them. Individual debts without your spouse’s name won’t affect their credit.
• Keeping your spouse’s property out of bankruptcy in community property states. All marital assets become part of the bankruptcy estate whether you file together or separately. Joint property may not be protected even in non-community property states.

How the Automatic Stay Affects Your Spouse

The automatic stay protects you from creditors immediately after filing. Bankruptcy law stops most legal actions against you.

The stay halts:

• Wage garnishment
• Foreclosure
• Repossession
• Debt collection lawsuits

Chapter 7 automatic stay only covers you. Your spouse gets no protection when you file individually. Chapter 13 includes a co-debtor stay that protects anyone listed on your debts.

Community property states extend the automatic stay to marital property. Your non-filing spouse’s income can’t be garnished for community debts.

Does Your Discharge Protect Your Spouse?

A bankruptcy discharge eliminates your obligation to repay debts. Your spouse remains fully liable for any joint debt. They’re treated like any other co-signer.

Community property states offer a “community discharge” protecting your spouse’s community property. Creditors can still pursue their separate property though. Separate property your spouse owns or expects to receive remains vulnerable to collection.

How Your Bankruptcy Affects Your Spouse’s Credit

Your spouse’s credit rating usually stays intact when you file individually. Bankruptcy appears only on your credit report. Their individual debts remain unaffected.

Joint accounts create complications. Shared credit cards and co-signed loans get included in your bankruptcy. Your discharge removes your payment obligation. Your spouse must still repay the full joint debt amount.

Late payments on joint accounts damage your spouse’s credit score. Your spouse should monitor their credit report throughout your bankruptcy case. Early detection prevents bigger problems later.

Completing Bankruptcy Forms for Individual Filing

You must disclose information about your non-filing spouse on several forms. Chapter 7 bankruptcy requires household financial details even for individual filings.

Schedule A/B and Schedule C: Assets and Exemptions

You must list all assets you own, including joint property. Indicate which assets you own separately and which belong to both spouses. Your bankruptcy attorney helps identify exemptions protecting your property from liquidation.

Schedule H: Co-Debtors

Schedule H lists all co-debtors and your joint debts. List your spouse for any debt you share together. Community property state residents must list their spouse even without joint debts. Include your spouse if you lived in a community property state within the last eight years.

Schedules I and J: Income and Expenses

Schedule I requires income information for both spouses. Schedule J lists all household expenses. The court needs your total household income.

Include your non-filing spouse’s separate expenses on Schedule J. Add their debt payments to household expenses. Spouses living separately list income and expenses separately. Any financial contributions from your spouse count as household income.

The Means Test

The means test determines Chapter 7 eligibility. It calculates household income from the six months before filing. You must include your spouse’s income even when filing alone.

Subtract your spouse’s expenses that don’t benefit the household. Deduct their payments from their contribution to household income. The Bankruptcy Code requires accurate household income reporting.

Handling Car Loans in Individual Bankruptcy

Chapter 7 offers three options for car loans:

• Reaffirmation. Keep the car and continue making payments under the original loan terms. Reaffirmed debt survives your discharge. You remain personally liable for the loan.
• Redemption. Pay the lender what the car is actually worth. Eliminate your responsibility for the remaining loan balance. Redemption requires a lump sum payment.
• Surrender. Return the car to the lender. Your discharge eliminates the entire loan balance. Start fresh with a different vehicle after bankruptcy.

Co-signed car loans require special consideration. Your choice affects your co-signer’s credit score. Your spouse or other co-signer remains liable for the full loan amount if you surrender the vehicle.

Community Property State Considerations

Nine states follow community property rules: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska allows spouses to opt into community property.

Community property states treat most assets and debts acquired during marriage as jointly owned. Your individual bankruptcy filing includes community property. Your spouse’s separate property stays protected from your creditors.

Community property rules affect the automatic stay and discharge. The community discharge protects your spouse’s community property interest. Creditors can’t pursue community property for your discharged debts.

Joint Filing Versus Individual Filing

Joint filing offers advantages when you share significant debt. Both spouses receive a discharge. You pay one filing fee instead of two. Joint bankruptcy resolves household debt problems together.

Individual filing makes sense when debt separation exists. Your spouse preserves their credit and future bankruptcy option. You protect assets your spouse owns separately.

Your state’s property laws influence the best choice. Speak with a bankruptcy attorney for free to evaluate your specific situation. They assess your debts, assets, and state laws to recommend the optimal filing strategy.