When you are dealing with debt you cannot repay and receive daily phone calls from creditors, it can make life awkward and unpleasant, especially with the fear that you might soon face home foreclosure or car repossession. Under such circumstances, personal bankruptcy is often an effective solution. However, while it can stop the phone calls and the foreclosure process, your bankruptcy might have consequences for your spouse.

3 Ways a Bankruptcy Can Affect Your Spouse

1. Joint Property

Your spouse shouldn't have to worry about having to liquidate any property they own separately from you to satisfy the bankruptcy proceedings. However, if you own joint property, your spouse may be affected. In some states, any assets acquired during the marriage are considered community property, and the entire value—unless you can exempt it—can be directed to the repayment of debts. However, Ohio is not a community property state. Marital assets can still be liquidated, but your spouse will receive their portion of proceeds of any sale as remuneration. 

2. Joint Debts

After you complete an individual bankruptcy procedure, your debts become discharged—even if you've only repaid part of the debt—and your creditors cannot legally continue to pester you for satisfaction. However, if you have joint debts with your spouse, creditors can still seek full repayment of any unpaid amounts from them.

3. Credit Rating

Any individual debts you discharge during bankruptcy won't affect your spouse's credit rating. However, if you have joint debts, the fact that you filed for bankruptcy on your portion could show up on your spouse's credit report. This likely won't affect their actual credit score, but it could make a difference to lenders who are considering whether to offer your spouse credit in the future. 

If you're dealing with creditor harassment, facing wage garnishment, or considering personal bankruptcy, contact attorney Harry B. Zornow in Hamilton, OH. Attorney Zornow has been serving the Greater Cincinnati area for more than 30 years and specializes in Chapter 7 and 13 bankruptcies. He and his team also tackle Social Security and probate cases. Visit their website to learn more about their services, or call (513) 737-9770 to schedule a free consultation.