Bankruptcy court allows people to file jointly for relief when they meet the eligibility requirements, such as being married. This way, you and your spouse can address your combined financial debt issues under federal laws and utilize some favorable state-specific considerations.
Assets and debts acquired by you as a couple during the marriage are typically considered shared, and they can impact the process if you file individually. Joint filing is optional, but often recommended if both of you share most of the same debts and liabilities. Call our knowledgeable bankruptcy attorneys at Allmand Law Firm, PLLC, for help with filing a joint bankruptcy in Dallas.
Who Can File Jointly?
Married couples can file jointly if they both agree to initiate legal action, even if they are separated. However, those not currently living together may need to submit additional forms to list their non-filing separate household expenses. If a married individual chooses to file alone, according to the guidelines provided by the United States Courts, Chapter 7 Means Test Calculation rules, they will likely still need to include their spouse’s income.
This applies to couples living together in the same household rather than being separated. The state provides the allowable income, based on the size of the family, for filing a Chapter 7. If the couple makes too much, they can consider submitting a Chapter 13. Our Dallas attorneys are skilled in helping clients navigate these procedures and could help ensure that your joint bankruptcy case complies with federal and state laws.
The Process
Some examples of the typical joint bankruptcy process in Dallas include the following:
- Gather the necessary documents: Joint bank accounts, tax returns, pay stubs, and lists of assets and debts
- Determine which type of bankruptcy is appropriate: Choose between a Chapter 7—the liquidation of non-exempt assets—or Chapter 13—a three-to-five-year repayment plan
- File the joint petition in the US Bankruptcy Court for the Northern, Southern, Western, or Eastern District of Texas
- Attend the credit counseling and trustee meeting
Before submitting your petition, you must complete mandatory credit counseling and meet with the trustee to discuss debts and community property versus separate property.
Benefits of Filing Together
Dallas couples who file a bankruptcy case together benefit from the simultaneous discharge of both spouses’ debts while also protecting their joint assets. Furthermore, filing starts the automatic stay, protecting the couple from collection calls or legal action regarding the debt they owe jointly and that is included in the petition.
Filing together is also ideal if both people are liable on the outstanding loans or credit card debt. While there are many advantages to submitting a form for relief jointly, there are also some risks to be aware of.
The Risks and Other Information
Filing for bankruptcy can have a substantial impact on community property, which is typically the majority of the marital assets and the debt the couple owes together. Creditors may pursue legal action or other collection actions against the spouse not included in the bankruptcy action.
Another essential item to note is that if a couple is currently in divorce proceedings when they file, the automatic stay pauses the proceedings. During a consultation, our experienced attorneys could answer your questions about the bankruptcy process and the specific risks you face.
Contact Our Dallas Attorneys About Submitting a Joint Bankruptcy Case
If you and your spouse are considering whether to file for bankruptcy together or separately, it is crucial to understand all the possible advantages and risks to protect your interests. It is also important to note that even if you choose to file separately, the Means Test calculation will likely include both of your incomes.
Our knowledgeable lawyers at the Allmand Law Firm, PLLC, could provide you with the legal advice, guidance, and help you need through each step of the process. Call today to learn more about filing a joint bankruptcy in Dallas.
