After marching down the aisle, you vowed (in one form or another) to stick it out “for better or for worse.” Unfortunately, you’re now putting that commitment to the extreme test, because you’re up to your eyeballs in debt — and it’s getting worse by the day. That’s the bad news.

 The good news is that you may be able to file for chapter 7 bankruptcy, which will immediately halt all collection activity, including terrifying letters and phone calls. It will also put a temporary stay on any wage garnishment that may have started, as well as any civil litigation started by your creditors.

However, before you can avail yourself of these protections and start to rebuild your financial life, there are some critical facts that you need to know about filing for bankruptcy while married vs. filing for bankruptcy as an individual. Here is what Charles Huber, a bankruptcy attorney with over 30 years of experience and Principal of the Law Office of Charles Huber, advises:

Spouses can file individually as well as jointly

Contrary to what many people believe, it is perfectly legal for individual spouses to file for bankruptcy, instead of both spouses filing jointly. Why would an individual spouse head in this direction? Typically, it’s in order to protect the non-filing spouse’s credit rating. Sound like the perfect plan? Well, perhaps not — as the following piece of advice will explain.

Joint debts will only get discharged through a joint filing.

If spouses incur shared debts — such as a mortgage, car loan, line of credit, and so on — then the only way these debts will get completely discharged is if spouses file jointly for bankruptcy. If just one spouse files, then creditors may pursue the other spouse for payment. Ouch!

Both spouses’ incomes will be factored into the chapter 7means test.

If spouses incur shared debts — such as a mortgage, car loan, line of credit, and so on — then the only way these debts will get completely discharged is if spouses file jointly for bankruptcy. If just one spouse files, then creditors may pursue the other spouse for payment. Ouch!

Both spouses’ incomes will be factored into the chapter 7means test.

In order to file for chapter 7 bankruptcy, people must first pass the chapter 7 means test. This is an assessment of income that is designed to help low to moderate-income filers discharge their debts. People who do not pass the means test must file for chapter 13bankruptcy, in which debts are restructured and typically paid back over a period of 3-5 years.

Why this spotlight on the chapter 7 means test? Because, again contrary to what many people believe, the incomes of both spouses will be taken into consideration, even if one spouse wishes to file. This may ultimately disqualify a spouse from filing, regardless of whether he or she has an individual income that would otherwise (and sometimes easily) qualify them for a chapter 7 filing. 

The Best Advice?

While the above is certainly helpful, there’s some even more valuable advice for couples: stay out of (or at least control) your debt! For some great tips and life hacks, read our article “6 Great Money Moves for Married Couples.” The information might do more than help you save a lot of money and stress. It could save your marriage!