Bankruptcy can be a complicated process. Complications are often further exacerbated if you have a spouse. Here is a look at your options when it comes to bankruptcy and being married.

In marriage situations, when a person or couple needs to declare bankruptcy they have two main options. They can either both declare bankruptcy in a joint procedure or one person can declare bankruptcy without the other. It is also important that you research your individual state property laws in order to determine how a couple can handle this process with specific regard to their state, since these laws vary from state to state.

Community property states are very clear about their specifications for debt and spouses. If individuals are not filing jointly and only one person is filing, both halves of the property/debt become property of the estate. As such, the debt of both individuals is resolved even when only one person files for bankruptcy. In these states, there is no real need for both individuals to file for bankruptcy since they are considered to share the property and the accompanying debt. The majority of states do not qualify as community property states.

Other states have different laws. In these alternate states, it is important to note that if only one person files bankruptcy, the debt of their spouse is not resolved. In order for debt to be resolved in these states, both individuals need to be filing jointly. It is important to note that the debt in both individuals’ names will be resolved when only one declares bankruptcy. However, the spouse may not piggyback their exclusive debt on their partner’s bankruptcy case.

In order to determine the best bankruptcy option for you and your spouse, consider the type of state you are living in at the time of filing. You will also need to consider whether you have individual debt or joint debt. This reflection will often make the advantages and drawbacks very clear, allowing you to make the most educated decision in the matter.