It is certainly possible, and sometimes advisable, to file bankruptcy without one's spouse.  Many couples in this scenario want to know how the non-filing spouse will be affected by the bankruptcy, particularly as it pertains to the tax refund, which in Utah ends up being the most commonly liquidated asset in a chapter 7 bankruptcy.  Normally, the bankruptcy trustee will consider the tax refund to be a joint asset, being owned equally by each spouse.  Sometimes a trustee will prorate the refund based on W2 forms, meaning the higher earning spouse may have a larger ownership share of the tax

It is not uncommon for someone to ask me if they can file a chapter 7 bankruptcy despite having filed a chapter 13 previously.  There are a few scenarios where this is applicable:

This is the case of Daniel Davis who hails from Chicago, Illinois who is interested in Chapter 7 fresh start.  Mr.

This is the case of David Singer from Zion, Illinois which is located in Lake County, Illinois.  Mr. Singer has never filed a bankruptcy before.  He is not a homeowner.  He is living with family and friends.  He owns no vehicle.  He owns very little in the way of personal property.  He has a checking account and a savings account at Chase totaling $1000.  He has minor household goods worth approximately $400 and minor clothing worth approximately $200.  He is single with no dependent children and he is currently unemployed.

This is the case of Elizabeth Sanford who comes from Berwyn, Illinois which is located in Cook County, Illinois.  Elizabeth Sanford has never filed for bankruptcy before, either a Chapter 7 or Chapter 13.  She owns no real estate.  She is currently renting and she is in a yearly lease which expires in March.  She owns a 2007 Mercury Montego which she wishes to surrender.  The finance company is Capital One.  It’s got 150,000 miles on the vehicle and she owes $13,000 on it.  Even though she is current, she wants to surrender and get out of that debt.  She also has a Pontiac through Regional

This is the case of John Zales who comes to me from Brookfield, Illinois which is located in Cook County.  John is interested in a Chapter 7 fresh start bankruptcy.  He has never filed for bankruptcy before.  He does not own any real estate.  He is currently renting from a landlord in Hodgkin’s, Illinois.  It is a month to month lease.

One spouse can file for bankruptcy without the other joining in the process, or even consenting to it. There are many instances where a couple would only want only one spouse to file. If one spouse has all the debt, but all of the assets are in the name of the other spouse, only the... Read More »

One spouse can file for bankruptcy without the other joining in the process, or even consenting to it. There are many instances where a couple would only want only one spouse to file. If one spouse has all the debt, but all of the assets are in the name of the other spouse, only the debt-ridden spouse would file. This would result in the couple keeping all of the assets while getting rid of the unmanageable debt—what is known today as a “win-win” situation.

Chapter 13 bankruptcy is often used to save a person's home from foreclosure. Under chapter 13, you are allowed to stop the mortgage foreclosure case and catch your mortgage up-to-date. The chapter 13 plan usually involves paying off the mortgage arrearage over a 3 to 5 year period in addition to making your regular ongoing monthly mortgage payments.

Nobody looks forward to filing bankruptcy. Most would say there is never a good time to need to file bankruptcy. Some times are better than others.  A better time to file the bankruptcy is after you receive the refund.