Unless you and your spouse or partner are also business partners, you cannot file for joint bankruptcy. This means that you must submit two sets of forms and pay two lots of bankruptcy fees.

Joint debts

Bankruptcy will have an affect on your finances as a couple if you have any joint debts. A joint debt is one that both of you applied for at the same time and in which you are both named on the credit agreement.

If you have a joint debt and only one of you goes bankrupt, the other person named on your credit agreement will become responsible for the whole amount of the debt. This person will then have to make arrangements to pay the total amount back by themselves.

This situation would not occur if you both went bankrupt. However, if bankruptcy was confirmed as the most suitable solution to deal with your debt situation, you would need to apply individually for your bankruptcy and both be able to pay the bankruptcy fees. The cost of applying for bankruptcy is considerable.

Bankruptcy advice

Bankruptcy is only suitable when the total value of all your debts is greater than all your assets. This means that you are ‘insolvent’.

You must seek professional advice if one or both of you are considering going bankrupt. CCCS Debt Remedy, our online debt counselling service, can help you decide if bankruptcy is the best solution for your debt problem, or recommend more suitable alternatives.