In Bankruptcy

One spouse’s Bankruptcy shouldn’t have an impact on the non-filing spouse’s credit score. However, there are pitfalls to avoid.

If the couple has a joint account, the non-filing spouse will need to keep payments up on that account. Bankruptcy only discharges the filing spouse from his / her obligation to pay. The non-filing spouse is still legally obligated on the debt. If the debt is not paid or paid late, that will be reflected on the non-filing spouse’s credit report, even though the bankruptcy won’t impact the score.

One spouse filing Bankruptcy can impact the couple’s ability to make a joint purchase. If they attempt to purchase a car or home together, both credit reports will be pulled. While the non-filing spouse’s credit report won’t reflect a bankruptcy, the filing spouse’s report will. Depending on when the filing spouse received the Bankruptcy discharge, and what he / she has done to repair their credit, the joint purchase may be possible. If not, the only option may be to make the purchase in the name of the non-filing spouse only.

While the filing spouse’s bankruptcy won’t directly impact the non-filing spouse’s credit, the above issues and others need to be considered.

Contact us to consult with an experienced Bankruptcy attorney so we help you as a couples avoid pitfalls and manage your finances effectively.

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