When you marry your spouse, your vows likely represent the idea that you will stick by each other for better and for worse, for richer and for poorer. However, finances are some of the most contentious issues for married couples. This can only be made worse when you decide that filing for bankruptcy is the best option for your needs. However, you may worry about how this process will hurt your spouse and affect their credit. To learn more about this and get the answers to additional questions, you’ll want to keep reading. You’ll also discover how a Memphis, TN consumer bankruptcy lawyer can help you through this process.
Will Filing for Bankruptcy Hurt My Spouse’s Credit?
If you want to file for bankruptcy, the most important thing you may want to consider is whether or not it will impact your spouse’s credit score.
When you file for bankruptcy, your credit score will decrease drastically. This will impact your ability to secure loans, housing, and in some cases, job opportunities. As such, you may worry whether or not this will also affect your spouse.
Luckily, filing for bankruptcy does not affect your spouse’s credit. If you are filing without your spouse, this will only show up on your credit report. In the event that it also appears on your spouse’s credit report, this is an error and should be addressed with the reporting agency immediately.
However, if you and your spouse choose to file a joint bankruptcy, it will impact both of your credit scores.
Should I File Bankruptcy With or Without My Spouse?
When considering if you should file for bankruptcy jointly or individually, there are a number of factors you’ll need to factor into your decision. For example, if the vast majority of the debts are your own, it’s in your best interest to have dischargeable debts forgiven. In the event that you have many joint debts, it may be best to file with your spouse. If you file individually, your spouse will be held responsible for any of your shared debts.
You should also take what property you and your spouse own, together and separately, as a joint filing will combine all your assets. This means you may find that your spouse has a lot of non-exempt assets. As such, you may wish to file separately to avoid having their assets liquidated as part of the process.
Bankruptcy is a confusing and complex legal matter. As such, it’s in your best interest to contact the Arnold Law Firm to help you through these complicated issues. Our dedicated legal team will work with you and your spouse to answer any questions you may have. Similarly, we will work to provide you with the information and advice necessary to help you determine the best course of action for your circumstances. Contact us today to learn more.