If you are considering filing for bankruptcy but you are engaged or married, you may be wondering how it will affect your joint financial situation. Fortunately, a seasoned attorney from The Gil Law Firm in Dothan, AL, can address all of your concerns regarding Chapter 7 or Chapter 13 bankruptcy. In the meantime, read on to learn more about filing for individual bankruptcy when you are part of a couple.
FAQs Regarding Bankruptcy & Marriage
If I File for Bankruptcy, How Will It Affect My Spouse?
Everyone has their own credit history and a corresponding score. Your marital status does not affect your credit score in any way, and there is no such thing as a joint credit score between husband and wife. Thus, filing for bankruptcy will not affect your spouse’s credit. The only time filing individually will affect your spouse is if he or she has already co-signed a loan with you or if you two share debt.
Will My Filing Affect Our Ability to Secure a Joint Loan?
If you and your spouse are thinking about purchasing a home in a few years, filing for bankruptcy could affect your ability to qualify for a mortgage together. In general, bankruptcy affects your ability to secure financing for a few years, and this includes joint loans, even if the other party has perfect credit.
Will I Be Eligible to File for Bankruptcy If My Spouse Has a High Income?
In general, your debt and your income are just that—yours—and that is what the bankruptcy court considers when you file for bankruptcy. If you own any major assets with your spouse, it could affect your eligibility for Chapter 7; however, your spouse’s income is not a determining factor.
Can My Spouse & I File for Bankruptcy Together?
If you and your spouse decide that it is in your best interests to file for bankruptcy together, you may file a joint petition. In joint bankruptcy, you will address both your joint property and combined debts.
If you have additional questions regarding bankruptcy, you can rely on The Gil Law Firm in Dothan, AL, for quality legal counsel. To learn more about their legal team’s experience in bankruptcy law, visit their website, and call (334) 673-0100 to discuss your financial situation with a knowledgeable attorney today.