Can a spouse file an individual bankruptcy?

I received an email today from a prospective client asking if a spouse could file bankruptcy without her spouse. Excellent question.

Although both spouses are not required to file bankruptcy jointly, the Bankruptcy Code does require both spouses income to be included in the means test analysis for CMI - current monthly income. However, most people 'pass' the means test analysis and can file for Chapter 7 bankruptcy protection. See previous posts for the median income level in Illinois. As for any joint debts between spouses, or family medical debts, the non-filing spouse may still be responsible.

This prospective client also owned real estate joint with her spouse.
As for the home, it would depend on the value of the home, and the balance owed on the mortgage. Each party can exempt $15,000 of equity in Illinois, so unless it has a large amount of equity, then it shouldn't be effected in a Chapter 7.

Now, if their combined income is too high for chapter 7 or if their home has too much equity, a chapter 13 bankruptcy can help, where she could pay back her bills, sometimes as low as 10 cents on the dollar for unsecured debts, depending on her budget.

Since each case is unique, I encourage consumers to seek an attorney to get a free consultation where the lawyer can examine the case in more detail and provide more specific answers.

Occupation: Bankruptcy Attorney

* Industry: Law * Occupation: Chicago Bankruptcy Attorney * Location: Chicago : Illinois : United States About Me Terry Leeders grew up just outside of Chicago, Illinois in Elmwood Park. He graduated from the University of Illinois, Urbana-Champaign and Thomas M. Cooley Law School. Terry started his legal career in 1998, where he focused his practice on Chapter 7 and Chapter 13 consumer bankruptcy cases. He has met with and counseled over four thousand clients about their financial needs. Terry realized that there was more he could offer each client in a small firm environment. Terry wanted to improve his client’s experience so he opened up the law firm of Leeders & Associates, Ltd. in which he can give his clients that one on one personal service they deserve. In addition to bankruptcy, Terry also focuses his practice on real estate, commercial leasing, landlord-tenant disputes, estate planning, wills and personal injury. * Education: Thomas M. Cooley Law School Lansing Michigan 1998 Juris Doctorate Degree University of Illinois Urbana-Champaign Illinois 1993 Bachelor's of Science Degree in Psychology Bar Admissions: U.S. District Court Southern District of Illinois 2000 U.S. District Court Central District of Illinois 2000 U.S. District Court Northern District of Indiana 1999 U.S. District Court Northern District of Illinois 1998 State of Illinois Supreme Court 1998 Organizations: Chicago Bar Association Illinois State Bar Association Tau Epsilon Phi Fraternity http://www.leederslaw.com http://www.chicagobankruptcynetwork.com http://www.luckyrealtygroup.com http://chicago-bankruptcy.blogspot.com http://bankruptcy-lawyer.blogspot.com http://filebankruptcy.blog.com http://chicago-sportschat.blogspot.com 312-427-7400 20 E Jackson Blvd. Suite 850 Chicago, IL 60604 We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

http://leederslaw.com