What To Think About When Filing For Bankruptcy Jointly or Not
Did you ever hear about your spouse’s debt affecting your credit? How would you know if your spouse’s debt is also your debt? If you are married or planning to get married, you might want to know this. A debt owed by a spouse is also yours in the case that it is a debt that you both got into together. For instance, student loans debt by your spouse before marriage will not fall under your liability. The only exception is if you agreed to co-sign for the loan, because then you will be in charge of paying it off yourself as well. However, this is all depending on what state you live and their laws. In community property states, the couple must both pay for the debt owed even if one filed for the debt. In the case of bankruptcy, if your spouse decides to file for Chapter 7, your debt and his/her’s debt will be erased.
If you have a lot debt and receiving minimum income and you decide to file bankruptcy, your spouse’s income will be calculated in, meaning you probably will not be able to qualify for Chapter 7, but for Chapter 13. Your spouse’s credit report is only affected when doing a bankruptcy together, but filing for Chapter 13 will lead to you owing the debt if you’re receiving income. There are many ways on Avoiding Bankruptcy, which is why you must contact professional attorneys before doing so. Make sure you are making the right decision of whether you should file for a bankruptcy with or without your spouse. It is necessary that you are prepare and aware of any issues that may come about when filing for Chapter 7 or Chapter 13, avoiding bankruptcy may even be one of your choices.
To figure out the best decision, a good thing to do will be to write down all the debts you owe. If you’re not sure as to how you should file together then contact us today and we will be able to assist you with that. You cannot force your spouse to file for bankruptcy, and if he/she decides to file for bankruptcy it might be convenient to file together. This is because then your household income won’t be an issue, plus all your debts will be wiped out. Do not let financial struggles be the reason as to why you should divorce to fix everything. Learn more about Avoiding Bankruptcy with the assistance of professionals, let us know your issues and you’ll be gladly helped!