Are You Impacted by Your Spouse Filing for Bankruptcy Protection?
Marriage impacts finances in many ways. Income levels can vary between partners, and you will have to decide how to allocate income to your expenses together. One or both of you could enter the marriage with any number of assets or debts which will influence how you move forward as a couple. Financial discussions between partners who are getting married are very important so your expectations can be set and you can move forward in your financial well-being.
Deciding to combine finances or keep them entirely separate is a decision each couple needs to make for themselves. There are reasons to proceed with combining assets or keeping assets and debts completely separate before or during a marriage. Your choices are completely yours and will depend on your financial priorities, goals, and other factors unique to you.
You and your spouse may find yourselves in a situation where one spouse could benefit from filing for bankruptcy, but this leaves the question of how the non-filing spouse could be impacted by this action. It is best to discuss your situation and your options with an experienced bankruptcy attorney. Georgette Miller & Associates has ample experience guiding clients through bankruptcy and onto a new start living debt free. Reach out to Georgette Miller & Associates today to discuss your financial goals and explore your options.
Answers To Your Questions About A Spouse’s Bankruptcy
There are many questions to consider before filing for bankruptcy protection, and if your spouse is in a position to file bankrupt but you are not, you are sure to have questions about what this means for you as an individual and as a couple as you consider other household finances. It is best to discuss the particulars of your situation with an experienced bankruptcy attorney and your spouse so you can make the most informed decision that will benefit you.
Until then, here are some commonly asked questions regarding a spouse’s bankruptcy and how it may impact you:
Will my credit score be impacted by my spouse filing for bankruptcy?
Only the filing party’s credit is affected by filing for bankruptcy. If however, their lack of credit after bankruptcy puts additional financial strain on household finances and you need to handle additional expenses with your own credit, it could impact your own credit score due to your income-to-debt ratio.
What happens to my spouse’s debt that is discharged in bankruptcy?
The debts discharged in your spouse’s bankruptcy will not become your liability.
How will our household debt be handled?
The spouse filing for bankruptcy must make a list of the eligible debts to be included in the bankruptcy to be discharged. The debt of the non-filing spouse will not be included and therefore will not be discharged. If there are household debts outside of the bankruptcy, creditors can still pursue collection action on these debts.
Will my spouse’s creditors come after me when they file for bankruptcy?
Filing bankruptcy puts a halt to collection efforts by creditors. When your spouse files for bankruptcy, creditors are unable to pursue legal collection actions against them, but they will also not be able to come after you for those debts included in the bankruptcy.
Will we lose our housing if my spouse files for bankruptcy?
This depends entirely on the particular situation you and your spouse find yourselves in when filing for bankruptcy. If you own your home and are able to keep up with mortgage payments, it is highly unlikely you will lose your home. The same is true if you rent your home and are up to date on payments; however, if you are behind on your rent payments and unable to make future payments you could be evicted.
What if we need to make a major purchase such as a vehicle or home after my spouse filed for bankruptcy?
Your spouse’s credit will be impacted which will prevent them from obtaining additional credit to make major purchases such as a vehicle or new home, so this may impact your future plans and purchases until their credit is resolved unless you can handle the finances of these purchases on your own.
To receive more detailed answers to questions like the above and to further discuss the bankruptcy solutions best suited to your situation, contact Georgette Miller & Associates today.
What Happens After A Spouse Files For Bankruptcy Protection?
You may have many questions about what your life will look like after a spouse files for bankruptcy. This will vary from couple to couple and will also be determined by what chapter bankruptcy is filed. For example, in a Chapter 13 bankruptcy, the filer will have a court-approved repayment plan to creditors and will have limitations on obtaining credit for a number of years. If your spouse files for bankruptcy, you may have some lifestyle changes to make and budget adjustments in response to their bankruptcy if you were accustomed to drawing on credit from both of you. Your spouse can work on rebuilding credit after the bankruptcy, and Georgette Miller & Associates can help you with other financial concerns in your household so you can both move forward in a financially stronger position than before the bankruptcy filing.
Bankruptcy is not the right solution for everyone, but you and your spouse may find that your bankruptcy is the start of the path of financial security your family needs to achieve your financial goals and freedom from debt. As you work towards a healthy financial future with the help of an experienced bankruptcy attorney, you can utilize financial resources and the bankruptcy code to pave the way to a successful future. Talk to your bankruptcy attorney to find the right option for you and your family.
Schedule Your Free Consultation Today
If you or your spouse are considering filing for bankruptcy to handle your debt, you should discuss your financial goals for filing bankruptcy with an experienced bankruptcy attorney. Contact Georgette Miller Law online or by calling 866-964-6529 for your free consultation.