One of the most common questions people ask me is “If I file bankruptcy will my spouse be affected?”  Typically, this usually only becomes a concern when only one spouse is going to file bankruptcy. Many People are under a misguided impression that if they file bankruptcy their spouse will be affected. Some people assume that because they are married their spouse will then be liable for their debt. This, however, is not the case. This only becomes the case when both spouses incurred the debt together and the debt is in both of their names.

For example, a credit card that is only in one spouse’s name and was not taken out jointly would mean that the only personally liable for the credit card debt is the person who took it out. However, if you both took out the credit card jointly or a personal loan jointly then both would remain legally liable for the debt. This would mean that after the bankruptcy is filed the other non-filing spouse would still be on the hook.

How Does Bankruptcy Impact My Spouse?

If only a husband files bankruptcy and the wife chooses not to file bankruptcy, then only the husband’s debts will be discharged. If the husband and wife have joint accounts together than the non-filing spouse will still end up being liable for the debt.

Many people are usually concerned about how bankruptcy will show up on a credit report and if it will be on their spouse’s credit report. In the example above, the bankruptcy filing would only show up on the husband’s credit report, but not the wife’s. If for any reason you find that a bankruptcy affected your credit report even though you did not file bankruptcy then you should contact the credit reporting agencies immediately. Someone who does not file bankruptcy should NEVER have their credit score impacted by their spouse’s bankruptcy.

How Does Bankruptcy Affect My Spouses Assets?

Bankruptcy assets can be tricky when it comes to filing bankruptcy in New York and New Jersey. In most instances, if your spouse owns property and you decide to file bankruptcy is won’t affect the other spouse’s property. However, there may be exceptions to this rule. If you pay for their mortgage or have acquired an interest in the property a Trustee may see it as otherwise. It is best to hire a good Staten Island bankruptcy lawyer or Union city bankruptcy lawyer if you are worried about any marital property.

Can My Spouse and I File Bankruptcy Together?

Married couples are able to file bankruptcy together. When you file bankruptcy with your spouse this is a joint bankruptcy filing. When two people file bankruptcy jointly it is usually less costly then it would be if you filed single. Both you and your spouses would get to benefit from bankruptcy protection.

If you are thinking about filing bankruptcy in Staten Island New York or Union City New Jersey Contact our office today. Karra L. Kingston Esq. has helped hundreds of people get out of debt. Call 973-979-9078.