Bankruptcy can often be seen as a last resort. The “B word” is one of the most dreaded in finance, even though it can ultimately be an excellent move in starting over. The biggest reason people fear bankruptcy is because of the many myths that surround it and how the process works. Among the biggest concerns is whether or not a bankruptcy will affect a loved one’s credit.
Marriage and Bankruptcy
In marriage, many financial assets are often shared. While it is possible for a person to file for bankruptcy on their own, there is a chance their spouse could be affected if:
· Bankruptcy is filed jointly
· The debts being discharged are joint, even if the bankruptcy is being filed individually.
If either of the above applies, a spouse could have their credit affected. While the debt for one spouse can be discharged, in cases where the liability for the debt is joint, creditors could still pursue the other spouse to settle the debt. When a person decides to file for bankruptcy, it could be extremely useful to take stock of one’s debts and whether or not they are joint before proceeding. This is especially important when one spouse has a higher credit rating than the other.
It should be noted that if a couple has an overwhelming amount of joint debt, filing for bankruptcy jointly could help the credit rating of both parties, depending on the circumstances. Filing for bankruptcy can be a difficult situation, especially in situations where more than one party are involved. But bankruptcy does not have to be difficult, even in the case of a joint couple.
If you or someone you know is considering bankruptcy, contact an experienced bankruptcy attorney who could help. Contact the law offices of Joel R. Spivack today online or by phone to discuss your options.