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Filing for bankruptcy can affect your partner if you’re married. Additional factors, such as whether debt is accumulated on a joint credit card, will also determine whether one or both parties are affected. If you’re engaged or married and are considering bankruptcy, here’s what you need to know about how it could affect your spouse.

How Filing for Bankruptcy Could Impact Your Spouse

First, it’s important to note that there is no such thing as a joint credit score. Every individual has their own, so even if your credit score is less than ideal, it won’t impact a future spouse’s credit if they haven’t co-signed a loan with you.

filing for bankruptcyA new spouse doesn’t assume their partner’s debt that was accumulated before marriage. If you apply for joint loans in the future, such as a mortgage for a home or a car loan, a low credit score from a previous bankruptcy could either prevent you from getting approved or lead to high interest rates.

For couples who are already married with joint credit cards and loans, the debts affect both parties. Thus, if you share debts together, even if only one person files for bankruptcy, it may appear on the spouse’s credit report. Moreover, creditors could still go after the spouse to seek payments. 

The Option to File Without Them   

There are still some instances in which it might make sense to have only one spouse file bankruptcy. For example, if your spouse has assets in their name only, such as property, filing for bankruptcy on your own will ensure that those assets aren’t included in the bankruptcy estate.

Keep in mind that your decision to file alone won’t negate your spouse’s obligation to pay any of the debts you share together.

 

 

If you’re thinking about filing for bankruptcy, allow the experts at Green Law, PC to help. Serving Hartford County, CT, this firm specializes in bankruptcy planning and restructuring to help individuals and businesses navigate the challenges of handling their debts. Find out more about their services online or call (860) 676-1336 to schedule a consultation.

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