How Does Separation From Your Spouse Affect Bankruptcy?
For many couples experiencing the breakup of a marriage, legal separation is an important tool to smooth the transition and protect themselves. But it can also make things more challenging if you simultaneously need to seek debt relief through legal bankruptcy. How do these two processes affect one another? Here are a few answers to the most common questions.
Can You Seek Bankruptcy While Separated?
The short answer to this question is yes. Individuals nearly always have the option of declaring personal bankruptcy with or without their legal spouse. Individual bankruptcy focuses on the petitioner’s assets and obligations. The amount of joint debts and assets linked to your spouse would determine how affected they may be if you file separately.