Filing for bankruptcy can bring relief from serious debt, but it also raises important questions, especially when you share property with someone else. Many people own homes, vehicles, or bank accounts with a spouse, family member, or partner. If only one owner files, what happens to that shared property? The answer depends on several factors, and understanding them early can help you plan with confidence.

You’re not alone in facing these decisions. According to the American Bankruptcy Institute, bankruptcy filings rose 28% from April 2023 to April 2024. As more people consider this option, it’s important to know how bankruptcy may affect the property you share.

Understanding How Joint Ownership Works

When you file for bankruptcy, your interest in jointly owned property generally becomes part of your bankruptcy estate. That usually includes only your share, not the portion owned by the other person. However, the way the property is titled, how much equity it has, and which exemptions apply can all affect what happens next. Our top bankruptcy attorney can review your deeds, titles, and account records to help you understand where you stand.

Comparing Chapter 7 and Chapter 13

The type of bankruptcy you file plays a big role. In Chapter 7, a trustee may sell non-exempt assets to repay creditors. In some cases, that can include jointly owned property, with the co-owner typically receiving their share of the proceeds. Chapter 13 works differently. Instead of selling assets, you repay debts through a court-approved plan, which may allow you to keep shared property while catching up on what you owe.

Considering Florida’s Protections for Married Couples

Florida law offers a protection called tenancy by the entireties for property owned jointly by married couples. In many situations, this type of ownership may shield property from creditors when only one spouse owes the debt. These rules can be nuanced, though, and joint debts may be treated differently. Working with a top bankruptcy attorney like ours can help you understand how these protections may apply to your home, accounts, and other assets.

At The Bankruptcy Law Offices of James Schwitalla, P.A., we help individuals and families in the Miami area understand their options and protect what matters most. We’ll review your property, explain how Chapter 7 or Chapter 13 may affect what you share with others, and guide you through each step. If you’re looking for a top bankruptcy attorney who takes the time to answer your questions, contact The Bankruptcy Law Offices of James Schwitalla, P.A. today to schedule a consultation.