Can Just One Spouse File Chapter 7

Can just one spouse file Chapter 7 bankruptcy? The simple answer is yes!

There are a lot of situations where either the husband or wife has incurred a great deal of debt and the debt is in only one of their names and only one of them is obligated to pay the debt. It could be that there are large medical bills against one spouse and the other spouse has not agreed to pay them. It could be a case where one spouse has credit cards in his/her name only and the other spouse has nothing to do with the credit cards. However it comes about, one spouse needs to file bankruptcy and the other spouse doesn't.

The fact that just one spouse can file chapter 7 bankruptcy doesn't mean that the other spouse will not be involved. Actually, the second spouse is not really involved in the bankruptcy, but his or her income and expense data is a necessary part of the Chapter 7 bankruptcy.

To qualify for filing a Chapter 7 bankruptcy, a person (debtor) must not earn too much money. The bankruptcy laws have two methods for determining whether or not a person makes too much. The first way is to compare the debtor's monthly income against the median income for a person in the same situation in the same state. If the debtor's income is less that the median of the other people, then he passes the income test and may continue with filing Chapter 7 bankruptcy. If the debtor's income is more than the median of other peoples income, then the law looks at the "means" test.

The second way of looking at a debtor's income is the "means" test. In this test, the debtor takes his monthly income, deducts certain amounts allowed by law for certain expenses. The result is deemed to be the debtor's disposable income. If the debtor's disposable income is less than a certain amount, then the debtor may continue with filing Chapter 7 bankruptcy. If the debtor's disposable income is more than a certain amount, then the debtor cannot file for Chapter 7 bankruptcy.

Since it is quite possible that one spouse has a large income and the other spouse has a limited income, the only way to accurately apply the above two income determination methods is to consider both spouses' income and expenses. Therefore, the total income for both spouses must be listed in the bankruptcy just as the expenses for both spouses must be listed even if a single expense is paid by only one spouse.

The intent of the bankruptcy rules is to evaluate a debtor's household financial position (income and expenses) in determining whether or not a person (debtor) qualifies for filing a Chapter 7 bankruptcy. If the qualification is met, then just one spouse can file chapter 7 bankruptcy.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

For more general information, see Bankruptcy. For more detailed information see Chapter 7 bankruptcy.

You may republish this article as long as the wording is not changed and all links remain active.