Money problems can put a lot of pressure on a marriage. One spouse may feel bankruptcy is the best way to move forward, while the other worries about their credit, public records, or the negative perceptions that still surround bankruptcy. If your spouse earns an income but does not want to file, that does not necessarily prevent you from seeking relief.

Many people believe married couples have to file together, but that is not the case. Bankruptcy law often allows one spouse to file individually, even if both spouses live in the same household. Knowing how your spouse’s income fits into the process can help you decide what option works best for your family.

Is It Possible To File For Bankruptcy Without Your Spouse?

Yes. Bankruptcy is available to individuals as well as married couples, and many married people file on their own.

While filing for bankruptcy separately is possible, only you get the protection and a possible debt discharge. If you share debts, your spouse may be held liable for them if their name is still on them.

Filing alone may make sense when one spouse has most of the debt, and the other has little or none. It can also be a practical solution when spouses disagree about bankruptcy or when preserving one spouse’s credit history is a priority.

Even if your spouse does not join the case, their finances may still affect certain aspects of your bankruptcy.

How Your Spouse’s Income Can Affect a Bankruptcy Case

Bankruptcy courts look at the overall financial picture of your household, particularly in a Chapter 7 case.

To see if you qualify for Chapter 7 bankruptcy, you have to take the means test. It compares household income to state median income levels. Even if your spouse is not filing, their earnings may need to be included in that calculation. In some situations, expenses that apply only to your spouse can be deducted, which may lower the amount of income considered available to pay creditors.

Income also matters in Chapter 13 cases. The court reviews your finances to determine whether you can afford monthly payments under a three- to five-year repayment plan.

A spouse’s decision not to file does not automatically disqualify you from bankruptcy. It simply means the court will examine your household finances more closely.

What Financial Information Will the Court Need?

Bankruptcy requires full disclosure of your financial circumstances. You cannot leave out information because your spouse is not participating in the case.

Being thorough and accurate is important. Leaving out information can delay your case and may lead to more serious problems.

Some people feel uncomfortable discussing a spouse’s finances, especially when that spouse opposes bankruptcy. Gathering documents early can make the process easier and reduce stress.

When Filing Separately May Be the Better Choice

Individual bankruptcy filings are fairly common. One spouse may have accumulated medical bills, credit card debt, or business-related obligations that the other spouse never shared.

Filing separately may also make sense if one spouse owns assets that are better protected outside bankruptcy. Couples dealing with marital problems sometimes choose this option as well.

Minnesota’s property and exemption laws can affect the outcome of a bankruptcy case, so it is important to review your debts, assets, and income carefully before making a decision.

Every family’s situation is different. A strategy that works well for one couple may not be the best fit for another.

What to Do if Your Spouse Refuses to File

Start by gathering information about your debts, income, expenses, and assets. Even if your spouse does not want to participate, discussing shared bills and financial responsibilities can help prevent confusion later.

Next, talk with an experienced bankruptcy attorney. An attorney can explain how your spouse’s income affects eligibility, identify potential issues, and help you evaluate your options.

It also helps to think about your long-term goals. Bankruptcy can stop collection calls, prevent wage garnishments, and give you an opportunity to rebuild your finances. Having a clear idea of what you want to accomplish can make the decision easier.

Contact Kain + Henehan to Discuss Your Options

When spouses disagree over a bankruptcy, deciding what to do is difficult at best. In many cases, filing individually still provides an opportunity to reduce debt, stop creditor actions, and regain financial stability.

At Kain + Henehan, we help people evaluate their options to see which form of bankruptcy is best for their situation. Let us review your circumstances, answer your questions, and help you take the next step toward a stronger financial future. You can contact Kain + Henehan at (612) 438-8006 or by filling out the online form for help dealing with your bankruptcy case in Illinois.