Toms River, New Jersey - New Jersey bankruptcy attorney Daniel Straffi, Jr. of Straffi & Straffi Attorneys at Law (https://www.straffilaw.com/can-one-spouse-file-bankruptcy/) issued guidance on whether one spouse may file for bankruptcy without the other, addressing common concerns about eligibility, joint debts, asset protection, and the effect on household finances. Drawing on current procedures and protections available in New Jersey, the clarification explains how a single filing interacts with the means test, the automatic stay, and co-debtor rules, and what that can mean for shared property and credit profiles.
Under New Jersey and federal bankruptcy law, one spouse may file independently, and the non-filing spouse does not automatically become part of the case. The means test reviews household income to evaluate eligibility and repayment capacity, and the “marital adjustment” may exclude amounts the non-filing spouse uses for personal expenses or for individuals who are not dependents. A New Jersey bankruptcy attorney can assess how this calculation affects qualification for Chapter 7 or the structure of a Chapter 13 plan, with specific attention to jointly titled assets, joint accounts, and co-signed obligations that may continue to affect the non-filing spouse.
When a petition is filed, the automatic stay halts most collection activity against the filing spouse and the bankruptcy estate. In Chapter 7, creditors may still pursue the non-filing spouse on joint debts, since that person is not protected by the filing spouse’s stay. Chapter 13 adds a co-debtor stay for consumer debts, which can pause collection against a jointly liable individual during the pendency of the case. Business obligations and many tax liabilities are excluded from that protection. A New Jersey bankruptcy attorney can evaluate whether Chapter 13’s structure, including three to five years of plan payments, offers practical relief for households managing joint obligations while preserving vehicles, homes, and other essential property.
Asset protection considerations remain central in any one-spouse filing. In Chapter 7, a trustee may seek court authority to sell co-owned property under 11 U.S.C. § 363(h) when partition is impracticable and the benefit to the estate outweighs any detriment to a co-owner. If a sale occurs, proceeds are allocated under § 363(j) according to each party’s interest. Titling matters, including tenancy by the entirety, can limit certain creditor remedies under state law, although entireties ownership is not an absolute shield in bankruptcy when statutory sale conditions are met or joint liabilities exist. Exemption choices also play a decisive role. As of April 1, 2025, the federal homestead exemption protects up to $31,575 in equity in a primary residence, and joint filers may stack exemptions when each spouse has an interest in the property, potentially protecting up to $63,150. New Jersey’s state exemptions do not include a specific homestead exemption; instead, they offer narrower personal property protections. Careful comparison of the federal and state schemes helps identify the approach that preserves household assets. By coordinating title review, exemption strategy, and chapter selection, a New Jersey bankruptcy attorney can align the filing with household goals while managing exposure on joint debts.
Credit reporting rules also warrant attention. A single-spouse filing appears only on the filer’s credit report. The non-filing spouse’s credit profile remains separate, though joint accounts can still generate negative entries if payments lapse or creditors accelerate joint balances following the filing. Proactive review of account ownership, payment responsibilities, and reporting practices can mitigate downstream effects on the non-filing spouse.
About Straffi & Straffi Attorneys at Law:
Straffi & Straffi Attorneys at Law is a New Jersey law firm serving individuals and businesses in bankruptcy, family law, and criminal defense matters. Led by New Jersey bankruptcy attorney Daniel Straffi, Jr., the firm provides counsel across Ocean County and surrounding communities, with a focus on clear strategy, steady case management, and practical results. Services include Chapter 7 and Chapter 13 representation, means test analysis, exemption planning, and negotiation with creditors. For consultations, call (732) 341-3800 or visit the firm’s website to request an appointment.
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Phone: (732) 341-3800
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