Filing for bankruptcy is a personal decision, and for many married couples in Baltimore, the question arises: can one spouse file for bankruptcy without involving the other? The answer is yes. In many cases, it may be beneficial for only one spouse to file, depending on the structure of your debts and assets. However, this decision should be made carefully, as it can impact both spouses’ financial future. Let’s explore what you need to know about single-spouse bankruptcy filings in Maryland.
Answering the Question: Can One Spouse File Bankruptcy in Baltimore
Which Bankruptcy Is Better for a Single Bankruptcy Filing?
In most cases, either Chapter 7 or Chapter 13 bankruptcy can be filed by just one spouse.
- Chapter 7 bankruptcy is often chosen by individuals with low income and high unsecured debts, such as credit card balances or medical bills. It offers a faster process for wiping out debts, typically completed in three to four months.
- Chapter 13 bankruptcy involves creating a repayment plan to pay off debts over a three to five year period. This chapter may be preferable if you are trying to protect property that might not be exempt under Chapter 7.
When only one spouse files, their individual debts and any joint debts are included in the bankruptcy. The nonfiling spouse remains responsible for their individual debts and any joint debts not paid through the bankruptcy. That is why it is crucial to understand how your debts are shared.
Alternatives to Filing Bankruptcy
Bankruptcy is not the only option. Depending on your financial situation, other alternatives may offer relief without the consequences of a bankruptcy filing:
- Debt settlement allows you to negotiate a reduced payment with your creditors.
- Debt management plans are available through nonprofit credit counselors and may reduce interest rates.
- Refinancing or consolidating debt can combine payments into one lower monthly payment.
However, these alternatives may not be effective for everyone. If creditors are pursuing aggressive collection actions or you are facing wage garnishment or foreclosure, bankruptcy might be the most effective solution.
Why You Should Meet with a Baltimore Bankruptcy Attorney First
Before making a decision to file bankruptcy—especially on your own—it is important to consult with a local attorney who understands Maryland bankruptcy laws. An attorney can review your income, debt, and asset situation to help you decide whether single or joint filing makes the most sense.
Here are five essential questions to ask during your consultation:
Will I be able to erase all of my debt in bankruptcy?
Not all debts can be discharged in bankruptcy. While most unsecured debts like credit cards and medical bills can be wiped out, others—such as student loans, recent tax debt, and child support—may still need to be paid.
Will I lose property in bankruptcy?
This depends on whether the property is exempt under Maryland law. In many cases, individuals filing for Chapter 7 can keep their home, car, and personal belongings. Your attorney can help you evaluate which assets are protected.
Should I file for Chapter 7 bankruptcy or Chapter 13 bankruptcy?
Chapter 7 may be better if you have little income and few assets, while Chapter 13 is ideal if you have property to protect or need time to catch up on missed payments.
When will you file my bankruptcy case and when will it be over?
Your attorney will help you prepare the necessary paperwork. Chapter 7 cases typically take about three to four months from the time of filing, while Chapter 13 cases last three to five years.
How much will the lawyer's retainer and bankruptcy filing fee cost?
Legal fees and court costs vary. Your attorney should provide a clear explanation of fees and payment plans before moving forward.
Ready to Talk to a Bankruptcy Attorney in Baltimore?
If you are considering bankruptcy and wondering whether it makes sense for just one spouse to file, The Law Offices of Nicholas J Del Pizzo is here to support you. Our team has decades of experience helping individuals and families in Baltimore and Dundalk understand their options and make smart financial decisions.