It might be in your best interest if your spouse does file with you
By: Darrell Castle
If you’re in debt and considering filing for bankruptcy, we’d love to talk to you. You can call (901) 327-2100 or fill out one of the contact forms on this page to schedule a free consultation with an experienced bankruptcy attorney.
If your spouse’s name is on your car loan and your car is about to be repossessed and you want bankruptcy protection, does your spouse have to file to?
Hi, I’m Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee and the answer to that is NO, your spouse does not have to file. However, it might be an advantage to you if your spouse does file because when your payment is recalculated in Chapter 13, it will probably be lower if your spouse does file.
But that is something that you and your spouse can decide for yourselves – whether or not you want both to file.
Chapter 13 is a very powerful weapon – it can protect your property from creditors. That is what the term “bankruptcy protection” means – your property is protected from seizure by creditors even if you’re behind on the payments. That is what it can do for you.
It can also increase your cash flow and help you month by month be able to live a better life and you can come out of it in a short period of time completely debt-free, except for your home, which you should be current on when you come out of the Chapter 13. That is its advantage.
Whether or not it is an advantage to file singly or with your spouse – you need to sit down with an experienced bankruptcy practitioner to decide that – to listen to all of your options and decide.
Chapter 13 is a powerful weapon. You can save your car from repossession with a Chapter 13 and you can get your car back after its already been repossessed, as long as long as it has not been sold.
So, if your car has been repossessed and the creditor has not had time to sell it, you can get it back through Chapter 13.
You should see an experienced Chapter 13 practitioner right away.