Can One Spouse File Bankruptcy and Other Bankruptcy Questions Answered
Did you know in 2011, more than 40,000 people have gone bankrupt in the state of Indiana? When you file for bankruptcy, you tend to have a lot of questions on your mind, such as when should I file bankruptcy, what can I discharge, and can one spouse file bankruptcy?
If you are looking for bankruptcy tips and advice, you have come to the right place.
In order to file Chapter 7 bankruptcy, which means all of your debts go away, minus the debts you can not legally discharge, you must qualify by proving your income is lower than the median income for your family size.
For example, if the median income for a family of four in your state is 50,000 dollars, and you make 45,000 dollars, you would qualify for Chapter 7.
If you do not qualify for Chapter 7, you can still file bankruptcy, but you will have to make a monthly payment. The payment is based on how much debt you have and what your income is, and will be significantly lower than you would be paying if you had to pay each debt in full.
Legally you cannot discharge debts from alimony, child support, student loans or debts incurred due to fraud.
The good news is, you can rebuild your credit after you file bankruptcy. And remember not to feel so bad if you do have to file. Four of America’s leaders had to file bankruptcy at one point: Lincoln, McKinley, Jefferson and Grant.