Filing for bankruptcy in Michigan without your spouse knowing is technically possible. Preventing your spouse from learning about your bankruptcy through your mail, your credit report, and the bankruptcy’s impact on joint assets may be difficult.

For a detailed discussion about your specific bankruptcy, contact the bankruptcy lawyers of Marrs & Terry, PLLC. We’ll evaluate your case and explain what legal options you may have.

Individual vs. Joint Bankruptcy Filing

The first thing to know is that married couples don’t have to file for bankruptcy jointly. But if you file jointly, hiding that from your spouse will be impossible. They’ll be involved in every step of the joint bankruptcy.

However, that doesn’t mean your spouse won’t notice if you file individually. According to Section 557.209 and Section 557.252 of the Michigan Compiled Laws (MCL), a spouse’s individual property may be used to cover that spouse’s individual debts.

If your individual bankruptcy impacts your shared property, your spouse will likely find out.

Chapter 7 vs. Chapter 13 Bankruptcy

When filing for bankruptcy, you will either be filing under Chapter 7 or Chapter 13. A Chapter 7 bankruptcy is a liquidation bankruptcy in which your property may be taken and sold to pay off your debt. AChapter 13 bankruptcy is a reorganization bankruptcy in which you set up monthly payments to pay off your debts.

Chapter 13 bankruptcy is more common and may be easier to hide from your spouse because it doesn’t involve selling your property. However, they may discover your bankruptcy due to the means test.

The Means Test

If you want to file a Chapter 13 bankruptcy, you must undergo a means test. The means test is a series of forms used to determine whether you can pay back your debt based on the amount you owe, your income, and other factors.

Even if you’re filing individually, the means test for Chapter 13 bankruptcy will consider your spouse’s income. This consideration could increase the amount you owe each month. And if you’re unable to pay it yourself, you may need to inform your spouse of the bankruptcy.

Michigan Bankruptcy Attorneys

You may want to keep your bankruptcy from your spouse for a number of reasons. You may want to protect their property and their credit. Or you may want to pay back a debt you’ve incurred without involving them.

Whatever your reason, the experienced bankruptcy attorneys of Marrs & Terry, PLLC, can assist. Contact us today for a free consultation, and one of our lawyers will help you understand the bankruptcy laws and how they relate to your situation.