When you and your spouse decide to tie the knot, you may envision an abundant and successful life together. However, when debt gets in the way of this dream, it can take a toll on your marriage. As such, you may wonder if filing for bankruptcy can help improve your finances or if this will subsequently impact your spouse. If you’re unsure what to expect from this process, you’ll want to keep reading. The following blog explores some of the most important aspects of the impact bankruptcy can have on a married couple and the importance of discussing your legal options with an Orange County consumer bankruptcy attorney.
Will My Bankruptcy Impact My Spouse’s Credit?
Though filing for bankruptcy may seem like an ideal way to regain control of your finances, you may wonder about the potential impact it can have on your spouse. It’s no secret that this process can drastically drop your plummet score, making it difficult to obtain loans or open lines of credit. If you file Chapter 7, it will remain on your credit report for ten years, while a Chapter 13 filing will remain for seven. Regardless, recovering from bankruptcy can be an intensive process. As such, you may wonder if your decision to file will cause your spouse’s credit to suffer as well.
You may be relieved to discover that as long as you do not file for bankruptcy jointly with your spouse, their credit will not be impacted by your decision to file. As such, if you decide to file but the bankruptcy also appears on your spouse’s credit report, you should immediately dispute its inclusion with the reporting agency.
Should I Include My Spouse in My Filing?
As a married couple, you have the opportunity to decide whether or not you want to file with your spouse or separately. If you’re unsure whether to include your spouse in your filing, there are a number of considerations you should make. First and foremost, if you have a considerable about of debts that you share with your spouse, such as mortgages, personal loans, or credit cards, filing together may be in your best interest. This is because if you make the decision to file on your own, your portion of the debt will be forgiven, but your spouse will still be held liable for the debt in their name.
You should also consider the property you and your spouse own, both jointly and separately. When you file together, all of your assets are combined. If your spouse has a considerable amount of non-exempt assets, filing on your own may be a beneficial way to help them avoid having their assets liquidated.
As you can see, there are a number of considerations that must go into the bankruptcy process. If you are ready to file but unsure of how to proceed, the most important thing you can do is connect with an experienced attorney from the Law Offices of Michael D. Pinsky, P.C. We understand how complicated these matters can be to navigate, which is why we will do everything in our power to assist you. Contact us today to learn more about your legal options.