When you and your spouse exchange vows, you’ll promise to stand by one another through thick and thin, and for richer and poorer. Despite this promise, it’s no secret that finances can often be a contentious matter, even for couples who have been married for decades. As such, if you are considering filing for bankruptcy, you may worry about the impact this process can have on your spouse. If this is the case, you’ll want to keep reading, as the following blog and Franklin County bankruptcy lawyers can help you during this difficult time.
If I File for Bankruptcy, Will It Impact My Spouse’s Credit?
When you decide that filing for bankruptcy is in your best interest based on the debt you have accumulated, you may worry about how it will affect your spouse. After all, this process can decimate your credit score, make it difficult for you to obtain loans, and in some cases, impact your job opportunities.
However, you may be relieved to find that this process will not impact your spouse at all. If you file on your own, you’ll find that this will not appear on your spouse’s credit report, nor will it impact their ability to obtain loans or decrease their credit score. In the event that you file separately and this appears on their credit report, you should contact the reporting agencies to have this removed from the report, as it is considered an error.
However, if you and your spouse decide to file as a couple, it can and will have an impact.
Should I File With or Without My Spouse?
If you are unsure whether or not you should file jointly with your spouse, there are a few factors you should consider. First and foremost, you’ll need to examine whose name is on the majority of the accumulated debts. If they are solely taken out in your name, filing alone may be best. However, if they are all joint debts, you’ll find that filing with your spouse is in your best interest. This is because they can be held liable for a debt in both of your names, even if you file bankruptcy alone and the debt is discharged.
You may also want to consider the property you and your spouse own. A joint filing will combine all of your assets, and if your spouse has non-exempt property, you’ll find that this can put your spouse at risk of having their property seized during Chapter 7.
As you can see, navigating bankruptcy can be difficult, especially for couples who have intertwined their finances. That is why it is in your best interest to consult an attorney with Cousino & Weinzimmer LLC to help you determine the best course of action. Contact us today to learn how we can represent you during these difficult times.
