May 7, 2021 By:
As a general rule, married couples can choose to file for bankruptcy jointly or separately. A caveat, though—even if you file individually, you must include the non-filing spouse’s income in the “means test” calculation to determine whether you qualify to permanently discharge debts in Chapter 7. You may exclude a spouse’s income only if you are legally separated when you file. You may, however, deduct some of your spouse’s income from the calculation:
The obvious situation when an individual filing offers significant benefit is when one party has outstanding credit and the other does not.
But can an individual filing also be used to protect jointly-owned property? Unfortunately, because Texas is a community property state, all marital assets are part of the bankruptcy estate, even if only one party files. Accordingly, you won’t be able to protect more property by filing separately in Texas.
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text message, or videoconference. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County, and surrounding counties.