What is Joint Bankruptcy?

This Debt Solution is Available for Residents of England, Wales and Northern Ireland

Joint Bankruptcy is a form of insolvency for business partners. This means if a couple wants to file for bankruptcy, it has to be filed individually.

On the contrary, if you as a couple are also partners in business, you can apply for joint bankruptcy should you prefer to go bankrupt. if this is the case, you have to submit two forms and pay bankruptcy costs and fees.

Can I include Joint Debts in Bankruptcy?

Your finances as a couple will be affected by bankruptcy once you have joint debts. Joint debts are credits or loans that you took out in joint names. This means you are both in the credit agreement.

If you have debts taken jointly, and one of you will go bankrupt, the other person on the agreement will be held accountable to pay the full debt amount. The creditor cannot compel nor collect payments from the other person who is bankrupt since bankruptcy prohibits a creditor to contact the debtor at any means.

However, in case that both parties will go bankrupt, these instances would not happen. But you may need to pay the charges separately and apply individually.

Free Bankruptcy Advice

Bankruptcy as one of the debt solution entails costs and fees that can rip your pocket. It is a debt solution that best fits you if you cannot pay off your debt. And, when you can’t afford to pay any amount for instalments. When you go bankrupt, your assets will be sold to cover debt payments. This means that if your assets are not sufficient to cover the debts, you’ll end up will owning money from your creditors.

On the contrary, if your assets are more than enough to cover the bankruptcy fees and your total debts, then bankruptcy might be suitable for you.

We suggest getting debt advice before you consider to file for bankruptcy. Our online debt advice tool will give you unbiased debt advice to determine which debt solutions best fits your situation.