Yes, a married individual can file for Chapter 13 bankruptcy without their spouse. But if you share a household, your spouse’s income must be included in the petition. Those who live in separate households do not need to include their spouse’s income — which is often the scenario in a separation case.
What happens if you get married during Chapter 13?
The exact impact is determined by both new household income and expenses. Most debtors are concerned about their Chapter 13 bankruptcy payments increasing after they get married, but it’s possible that you can get your payments decreased.
What to know about non filing spouses in Chapter 13?
If you are married, keep in mind that your spouse if he or she does not wish to file with you will still have to provide income and expense documentation under existing laws. There are some circumstances where the non-filing spouse’s income would dictate a much higher monthly plan payment than the debtor can afford.
Can a married couple file a chapter 13 bankruptcy?
Not every married couple files a joint chapter 13 bankruptcy case. However, the income and expenses of the non-filing party is critical in determining how much the filer has to pay per month to a Chapter 13 trustee and for how long. This relatively new concept stems back to the bankruptcy reform of October 17, 2005.
Can a Chapter 7 case affect a chapter 13 case?
In Chapter 13 it is harder to avoid having the non-filing spouse’s income and assets affect the other spouse’s case. The two spouses need to be very clear about all the consequences of only one person filing either a Chapter 7 or Chapter 13 case.
What happens at the end of a chapter 13 bankruptcy?
A Chapter 13 bankruptcy lasts anywhere from 3 – 5 years. At the end of the payment plan, any remaining unpaid debt is eliminated by a Chapter 13 bankruptcy discharge. To get the discharge, the filer has to complete the plan, which can sometimes be complicated by changing circumstances.
