In today's society, about 50% of Americans have been divorced and married again.
With this phenomenon many people are going into the second marriage with baggage.
This has created an interesting problem for those that want to file bankruptcy.
If someone has debt from their past and are now married, does their spouse have to file bankruptcy also? The answer to that is no.
Even if a person has been married their entire life they can file individually.
Where it gets tricky is when financial matters get intertwined between a couple.
This is where the spouse can be liable to a creditor when the other spouse doesn't pay their bill.
If someone has a joint account and one enters into a bankruptcy filing to wipe out the debt, the other one would be liable for 50% of that debt.
The creditor would probably try to go after all of it but in most states would only be able to collect half.
In the world we live in over one half of marriages end up in divorce in the United States.
Because of this the situation can change drastically.
Many times a person will enter a second marriage carrying debts from their past.
For this individual it would be much better to file bankruptcy individually and not jointly.
The new spouse cannot be held responsible for debts from the past.
Although filing bankruptcy would have been much better for the individual prior to getting remarried.
As people get married and divorced multiple times the problem gets more convoluted.
If a couple has been married for a number of years it is best to file bankruptcy jointly and make sure that all liability of any debts are put behind them.
The last thing someone would want is to file individually and have the creditor attach past debts to the spouse by putting a lien on a piece of real estate or a bank account.
Because of the nature of this type of bankruptcy filing, a person should speak with a bankruptcy attorney to see what works best for their personal situation.
Some people don't even realize that their spouse could be held liable for joint accounts.
Another problem arises with one of the two filing bankruptcy and they own property together.
If they live in a community property state, all of the couple's belongings will be valued at 50% for the spouse that is filing bankruptcy.
Since the same bankruptcy exemptions apply, sometimes this will benefit the individual's situation.
The bottom line is just because you're married doesn't mean you have to file bankruptcy jointly.
It is possible to file individually.