When you and your partner make the decision to spend the rest of your lives together, it can be incredibly exciting to consider the future. However, if you have considerable debt weighing you down, you may want to get your finances in order before tying the knot. As such, you may decide that filing for bankruptcy is in your best interest. However, you may be concerned about potential impacts on your future spouse’s credit. If this reflects your circumstances, you’ll want to keep reading to learn what you can expect during this process and the importance of discussing your legal options with a Memphis, TN consumer bankruptcy lawyer.
What Impact Will Bankruptcy Have on My Credit Score?
When you decide to file for bankruptcy, you may anticipate your credit changing. However, it’s important to familiarize yourself with the changes you can anticipate after filing. Generally, one of the most drastic changes will be the drop in your credit score. Filing for bankruptcy is an indication that you are unable to repay your debts, and as a result, it will cause your credit score to plummet. Unfortunately, the higher your credit score is, the more it will fall. Those with a credit score above 700 typically endure a 200-point decrease after filing, while those with a sub-700 score can expect a 130 to 150-point decrease.
In addition to the decrease in your credit score, bankruptcy will remain on your report for at least seven years, depending on which chapter you pursue. This means bankruptcy can impact your credit for quite a while.
How Will My Future Spouse’s Credit Be Affected?
If you are in the midst of planning a wedding, you may worry about the impact of your filing on your soon-to-be spouse’s credit. However, you should note that your decision to file will not have a considerable effect on your spouse. Because you are not legally married, they will not endure a drop in their credit as a result. However, if you have already applied for joint credit or loans, they will become responsible for your debts.
As previously mentioned, filing for bankruptcy can cause a considerable drop in your credit score. This can impact your spouse later down the line when you apply for joint credit or loans, as your credit score will likely cause higher interest rates or even denials. As such, it is recommended that your spouse apply for these loans solely to receive the best deal.
Filing for bankruptcy is not a decision that should be made lightly. As such, discussing your circumstances and concerns with an experienced attorney from the Arnold Law Firm is in your best interest. Our team understands how difficult these matters can be, which is why we are committed to guiding you through these challenging times. Contact our firm today to discuss your legal options and learn how we can assist you.
