Planning a wedding can be stressful, especially when you’re facing an overwhelming amount of debt. During this time, you might consider filing bankruptcy so you can go into your new marriage with a clean slate. To determine the best solution for your situation, you’ll want to consult a qualified bankruptcy lawyer. In the meantime, the following guide offers some helpful information on the relationship between marriage and debt.

What to Know About Bringing Debt Into a Marriage

Should You File Bankruptcy Before Getting Married?

The two types of personal bankruptcy are Chapter 7 and Chapter 13. When filing Chapter 7, unsecured debts are fully discharged, but in some cases, a person’s assets can be used to help pay back creditors a portion of what is owed. A Chapter 13 bankruptcy reorganizes debt into an affordable payment plan with no risk of losing assets.

If declaring bankruptcy before marriage, your future spouse won’t be affected. If you decide to wait until after walking down the aisle, there’s a chance your partner’s assets could be used to help pay off debts in a Chapter 7 filing. However, this typically only occurs in community property states where all property and debt is shared by married couples, which doesn’t apply to Alabama. Your bankruptcy lawyer can explain how this works in depth.

Will Your Partner Be Impacted By Your Debts?

Any debt you incurred outside the marriage will remain your obligation alone as long as it’s only in your name. Thus, unless your partner agrees to take on the responsibility, it won’t impact their own financial situation or credit in any way. Should you apply for a joint loan or credit cards once you get married, this will become joint debt you’re both accountable for.

While your debt or bankruptcy won’t affect your spouse’s finances directly, it can make it more challenging to get approved for joint accounts and increase the interest rate you’re eligible to receive.

How Can You Keep Your Debt Separate?

In the event you talk with a bankruptcy lawyer and agree as a couple to wait until after the wedding to file, there are steps you can take to protect your spouse. Don’t place funds in a joint bank account or take out loans in both your names. It’s also wise to file your taxes separately, and you may consider signing a legal agreement stating that all debts are to be treated separately.

If you’re concerned about burdening your new marriage with financial troubles, reach out to Padgett & Robertson, Attorneys at Law. They’ll help you decide if filing bankruptcy is the best way to get your finances back on track. For more than 40 years, these bankruptcy lawyers have been entrusted to provide individuals and families throughout Mobile County, AL, with effective debt relief options. Call (251) 342-0264 to schedule a free consultation and detailed financial analysis or visit their website for more information about their services. 

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.