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Separate Households As a default rule, if you and your spouse share a household, you likely need to include their income and expenses. Bankruptcy law presumes that if you and your spouse share a household, then you also share living expenses.
Your Spouse's Income Counts In order to file a Chapter 7 bankruptcy, you must pass a ?means test.? The means test takes into account the income of both spouses, whether or not they file together.
Deceased Spouse In Chapter 13 If a couple files for chapter 13 jointly, and one of them dies prior to discharge, the survivor may appeal to the court for lower payments. Sometimes the bankruptcy can be separated so that the surviving spouse only pays off debts where he/she is directly involved.
It is possible to file Chapter 13 without your spouse, but you need to consider a wide variety of factors before moving forward with this strategy. An experienced Chapter 13 bankruptcy lawyer can help you understand your unique situation and legal options.
You are permitted to seek bankruptcy while legally separated. Whether or not bankruptcy will solve your debt issues is another question. While filing bankruptcy alone will usually involve your own debts and assets, the debt you share with your spouse may not be dischargeable in a Chapter 7 bankruptcy.