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

A joint bankruptcy filing in Delaware is when two debtors, usually spouses, file for bankruptcy together. This means that they will be jointly responsible for any of the debt that is discharged and any repayment plans set up with creditors. An individual bankruptcy filing is when only one debtor declares bankruptcy. The primary difference between a joint filing and an individual filing is that with an individual filing the single debtor is solely responsible for any debt that is discharged, as well as any repayment plans. This means that things such as wages, assets, and future income can only be used to pay off the debt of the single individual. With a joint filing, both debtors are jointly responsible for the debt and repayment plans, meaning that any assets, wages, and future income can be used towards paying off the debt. Another difference between joint and individual bankruptcy filings is the amount of time it takes to complete the process. A joint filing may take a bit longer due to the complexity of having to address two debtors. Additionally, a joint filing can also incur more costs as there will be more paperwork. Because of the differences between joint and individual bankruptcy filings, it is important to weigh the options and understand the pros and cons of both before deciding the best approach. It is also recommended to consult an experienced bankruptcy lawyer to get advice on the best solution.

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

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