If your spouse has been struggling to manage their money, it is natural to wonder how it could affect your own financial security. At the end of the day, when one member of a married couple declares bankruptcy, there are a lot of factors that will determine how it affects the other person. Below, the legal team at O’Connor, Mikita & Davidson in Cincinnati, OH, explains what you can expect if your spouse is thinking about declaring bankruptcy.

How Will My Spouse’s Bankruptcy Affect Me?

Your Credit Report

Although declaring bankruptcy will definitely affect your spouse’s credit, it will not impact yours. Everyone maintains their own personal credit history regardless of their marital status, and it is impossible to merge a credit report with someone else’s. However, your spouse’s debt may show up on your credit report. If you financed anything together or share a credit card, filing for bankruptcy may discharge the debt for your spouse, but it will not affect your own obligation to pay back the lenders.

Your Ability to Borrow

If your spouse has a tarnished credit history, it will not affect your ability to borrow money as an individual. It may inhibit the two of you from financing large purchases together, though. For example, if you want to buy a house, but your spouse has recently declared bankruptcy, you may have to apply for the mortgage on your own or with the help of a cosigner. Applying for a mortgage alone may not seem like much of a hurdle, but it is important to keep in mind when you do so, the amount you qualify for will correspond to your income alone, and not your combined earnings as a couple. This could severely limit the size of the home you can ultimately purchase.  

If you are considering declaring bankruptcy, an attorney from O’Connor, Mikita & Davidson in Cincinnati, OH, will ensure you both understand all the repercussions of doing so before filing. You can learn more about the firm’s broad range of practice areas, including criminal and family law, by browsing their website. To schedule an initial consultation with a seasoned attorney, call (513) 793-5297.