Your marriage has been a model of relational accord since saying “I Do” a few decades ago, with one major exception: finances. Money – one of the most significant weights and causes for discord placed on most marriages. Jobs have been unsteady, hospital bills have come, and debt has racked up – at least for you. And now the question you have – if you file bankruptcy, will it harm your spouse?
Individuals and married couples can file bankruptcies. Sometimes, only one spouse has a debt problem. In such situations, that spouse can file alone (without including the other spouse as a debtor in bankruptcy). Household income (not income that’s limited to the debtor) comes into play in most bankruptcies, in determining eligibility and, in Chapter 11 and 13, how much the bankrupt debtor can afford to pay. When only one spouse files a bankruptcy, the bankruptcy will not appear on the spouse’s credit report. Understand that bankruptcy does negatively affect credit, so joint credit will be more expensive in the future. Further, if only one spouse is filing but there are joint debts, the couple should review with a bankruptcy attorney the options for each debt, because the non-filing spouse will remain liable for the debt.
A consultation with a bankruptcy attorney can help answer this and other important questions. If you would like assistance with determining the best plan for you, we’re here to help. Simply click here or call (704) 377-4300 to speak to a member of our bankruptcy team.
We are a debt relief agency helping people file for bankruptcy relief under the United States Bankruptcy Code.
Disclaimer: We are attorneys, but we are not your attorneys and this article does not create an attorney-client relationship. The information in this blog post is provided for general information purposes only, and may not reflect the current law in your jurisdiction. No information in this blog post should be construed or seen as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter.