One of the biggest concerns that people have when they file for bankruptcy is how it will affect their financial situation. Many people who are married have shared finances with their spouse, making bankruptcy that much more difficult. Many people falsely believe that when they are married, they must file for bankruptcy along with their divorce. However, even if you are married and have joint finances with your spouse, you can still file for bankruptcy individually. It is important to note, though, that filing for bankruptcy without your spouse can have an adverse effect on his or her credit, depending on the situation.

What Happens to Our Property?

In Texas, any property that either spouse acquires during the course of the marriage is considered to be joint property. However, for the purposes of bankruptcy, joint property is only considered to be that which has both you and your spouse’s name on it. For example, if a person files bankruptcy separately from their spouse in Texas, all of the property that they own -- even jointly -- is part of the bankruptcy estate. This means a spouse’s vehicle can also be included in the bankruptcy estate, even if they have financed the vehicle alone.

How Does Bankruptcy Affect My Spouse?

There are specific ways bankruptcy can affect your spouse in a community property state. Since all of the property that a couple owns is included in the bankruptcy estate of a married couple in Texas, this means that the protection of the extended stay is also extended to the spouse of a person filing for bankruptcy. This means that the bankruptcy trustee cannot take property that has been excluded as collateral to pay off some of the person’s debt. This also means that any debts that are held jointly by the couple will be discharged upon completion of the bankruptcy, essentially discharging the spouse’s liability from the debt as well.

Despite the ominous headlines about the national debt, the percentage of American households that have debt has actually decreased in the last decade, according to the National Census. Still, millions of Americans file for bankruptcy each year due to medical bills, lost employment, and other factors.

If you are facing insurmountable debt, then bankruptcy may be a viable option. There are also alternatives to bankruptcy that can help you manage payments and inch toward financial security. This article will discuss one such method, known as the “one-two payment plan.”

Break Down and Prioritize Your Debt

Making ends meet when facing steep amounts of debt can be a struggle—especially if you have a family. The truth, however, is that most Americans are in some kind of debt, which often involves expensive mortgages, high-interest credit cards, or student loans.

Many Americans want to end the burden of debt as soon as possible, which is why some of them dip into their savings accounts to pay off lenders. This article will discuss whether or not this is a smart idea.

Weighing the Options

San Antonio bankruptcy filings are at their lowest rate since 2006, but the decrease may be short lived.

New case filings in the San Antonio Division of the Western District of Texas, which covers Atascosa, Bandera, Bexar, Comal, Dimmit, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kerr, Medina, Real and Wilson Counties, fell 10 percent last year. Volume has declined every year since the Great Recession’s end in 2009. Observers cited a stronger economy fueled by high energy prices as the primary reason for this most recent decline. But, given that oil prices have fallen sharply to their lowest level in years, the area’s economic prosperity may be short lived.

The last oil bust, in the 1980s, triggered a ripple effect that plunged the state into recession.

Although most Americans have some form of debt, many could have avoided financial hardship by responsibly managing credit cards. Having funds instantly available is a great convenience, but overspending can put a person in a world of trouble.

Minimizing expenses is the first step for getting debt under control. Then, develop a budget that incorporates personal income, assets, and expenses. This can be a difficult task, which is why you should consider consulting a financial advisor or an attorney. If the debt amount is too great to pay off in a reasonable time period, consider discussing the situation with a bankruptcy lawyer.

Reasons and Alternatives to Canceling Credit Cards