If you’re facing financial challenges, you might be wondering if you should file for bankruptcy to discharge some of your debts. If you are married, you should know that this decision may affect your spouse. To help you determine whether this is the right step for your family’s financial security, here’s more information about how filing affects your assets and debts.

How Bankruptcy Affects Assets

If you file for bankruptcy alone in New York, it should not affect any assets in your spouse’s name. For instance, if your car is in your spouse’s name and only you file, the courts cannot repossess it or liquidate it to cover your debts. But if you own any assets jointly, half of it will be part of your bankruptcy case, meaning a bankruptcy trustee can try to sell it if the property isn’t exempt. 

Naturally, if you file jointly for bankruptcy, all property may be used to cover the debts. 

How Bankruptcy Affects a Spouse’s Debts

Although you might not need to pay certain types of joint debts after you’ve filed, your spouse still will be responsible for them. Any debts they have separately will also still exist. This means that your bankruptcy won’t negatively affect their credit score, although it may show up on their credit report.

However, if your spouse is unable to make the minimum payments they still owe, they may see a decrease in their score. Since they haven’t personally filed for bankruptcy, creditors may also come after them for the amount. 

If you or your spouse are considering filing for bankruptcy, having an attorney to guide you through the process is helpful. That’s where Robert A. Schwartz comes in. This reputable lawyer has been serving residents throughout Rochester, NY, since 1982. He will work with you to determine the best course of action for debt relief. Call (585) 334-4270 to schedule a free consultation, and visit his website to learn more about Chapter 7 bankruptcy.