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

A joint bankruptcy filing is when two people, usually a married couple, file for bankruptcy as a single case. In contrast, an individual bankruptcy filing is when each person files for bankruptcy separately. In a joint filing, married couples are required to file a single petition, schedules, and statement of financial affairs. A joint filing can also include joint property held by the couple. In Hawaii, there are a few advantages to filing jointly with a spouse. For example, a joint filing allows filers to take advantage of the full $666,000 exemption for real estate. A joint filing can also reduce the cost of filing fees and credit counseling fees, as they are split between both spouses. On the other hand, there are certain drawbacks to filing jointly. For example, if one spouse has a high amount of debt, it could put the other spouse at risk of having debts tied to them as well. In addition, assets must be divided equally when filing jointly, regardless of who owns them. This could be problematic if one spouse has more assets than the other. Ultimately, the decision of whether to file jointly or separately depends on a variety of factors, such as income, exemptions, and the amount of debt. It is advisable to speak with a qualified bankruptcy attorney in Hawaii to determine the best course of action for a specific situation.

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

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