Can One Spouse File Bankruptcy? by Daniel Straffi

Can One Spouse File Bankruptcy? by Daniel Straffi

In this video, we break down the key aspects of bankruptcy in New Jersey and explain the differences between individual and joint bankruptcy filings. Viewers will gain a clear understanding of how a bankruptcy filing can affect household income, credit scores, and shared property. We address common questions such as whether one spouse can file independently, how the process works for Chapter 7 and Chapter 13 bankruptcy, and what role a trustee plays in assessing a debtor’s assets for property liquidation.

Straffi & Straffi Attorneys at Law
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At Straffi & Straffi Attorneys at Law, our team works closely with clients to navigate the complexities of bankruptcy law in New Jersey. We explain how a bankruptcy filing influences both dischargeable debts and priority debts like taxes or alimony. The video highlights how a non-filing spouse remains responsible for joint debts if they are co-signers or co-debtors on accounts, and we discuss the impact on credit reports when one spouse files while the other maintains separate credit histories. We also clarify that an individual’s decision to file does not automatically affect the other spouse’s credit score, even when shared financial responsibilities exist.

The discussion covers various scenarios that often prompt a bankruptcy filing. We explore situations where filing individually makes sense, such as when one spouse has strong credit or when most debts are in the name of one partner only. The video also compares these situations with those where a joint bankruptcy filing might provide a more comprehensive solution. For example, filing together can sometimes reduce legal and filing fees while offering a streamlined process for handling both partners’ dischargeable debts. We also address how New Jersey’s state exemptions differ from federal bankruptcy exemptions, including the homestead exemption, and how these differences play a role in protecting assets.

Additionally, we examine the concept of tenancy by the entirety, which offers a level of protection for marital property in New Jersey. This legal arrangement prevents creditors from forcing the sale of property held jointly without both spouses’ consent. Our discussion explains how the bankruptcy estate is formed and managed, and how a trustee may liquidate assets if needed. The video presents a balanced view of the responsibilities that come with filing for bankruptcy, particularly when it comes to joint debts and the potential for wage garnishment or foreclosure on shared property.

We also address the options available for managing joint debts through strategies such as debt consolidation and refinancing. These financial tools can help maintain stability during the bankruptcy process and protect both partners’ credit profiles. The video emphasizes the importance of reviewing which debts are held individually versus those that are shared. It also suggests that couples consider a confidential legal consultation to explore the best path forward for their specific financial situation.

Straffi & Straffi Attorneys at Law invite viewers to call (732) 341-3800 to schedule a consultation and discuss personalized strategies for managing bankruptcy in New Jersey. The video aims to provide practical information and guide you through each step of the process, from evaluating the benefits and drawbacks of filing alone or jointly to understanding how different aspects of bankruptcy law affect your financial future. Watch the video to learn how clear communication and careful planning can lead to a fresh financial start in challenging times.

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