What is the difference between a joint bankruptcy filing and an individual filing?

A joint bankruptcy filing is a type of bankruptcy filing in which two or more people, usually married couples, file for bankruptcy relief together. Individual bankruptcy filings are solely for the benefit of one person and not for the benefit of another. The advantages of joint bankruptcies comes in the form of cost savings associated with filing a single petition. Additionally, couples can choose to file a joint bankruptcy to better protect any joint assets such as a home or bank accounts. In Colorado, joint bankruptcy filings are governed by the same rules as individual filings with respect to the types of relief that are available and the necessary paperwork and information that must be provided in order to obtain a discharge. Both joint and individual filers must provide the bankruptcy court with information about their income, assets, liabilities and other financial information. With an individual bankruptcy, only the individual filing receives relief from debt obligations; whereas with a joint bankruptcy both parties to the filing will receive relief from the discharge. In the event that the couple later dissolves their marriage, the joint bankruptcy will remain in effect and the credit accounts or loans included in the joint bankruptcy discharge cannot be re-initiated. In summary, the main difference between a joint bankruptcy filing and an individual bankruptcy filing is the number of people filing and the form of relief received. With an individual bankruptcy, only the individual filing receives relief; with a joint bankruptcy, both parties receive relief from the discharge.

Related FAQs

What is the difference between secured and unsecured creditors?
What is the process for filing for bankruptcy?
What types of debt can be discharged through bankruptcy?
How long will a bankruptcy stay on my credit report?
What kind of debt counseling is available before and after filing for bankruptcy?
Will filing for bankruptcy stop repossession?
Are there any debts that cannot be discharged in bankruptcy?
Does filing for bankruptcy stop foreclosure proceedings?
Are there any limits to my spending during the bankruptcy process?
What is bankruptcy?

What is the difference between a joint bankruptcy filing and an individual filing?

Related FAQs

Related Blog Posts