What if I Own Joint Debt with Someone Who Files for Bankruptcy?
Bankruptcy can be filed by one spouse without the other. If your spouse files for bankruptcy, it does not automatically bring you into bankruptcy. Similarly, the bankruptcy of a spouse doesn’t give you the protection of automatic stay or bankruptcy debt discharge.
Following are some more ways bankruptcy and marriage are related:
- Joint debt. With joint debts, when one spouse files for bankruptcy, creditors may look to you for payment of the jointly-owned debt.
- Joint property. If you and your spouse own property together, that property may be included in the bankruptcy estate. You will definitely want to seek legal advice to make sure your assets are protected.
- Credit reports. Every person has his or her own credit report. Your debts should not show in your spouse’s credit report and vice-versa, unless you are a co-borrower or an authorized user. However, you should always monitor your credit report for errors.
- Future credit. If you apply jointly for a loan and your spouse has declared bankruptcy in the past, your may be denied credit. Loan grantors consider the credit ratings of both spouses in making decisions on joint accounts.
If you have additional questions regarding how bankruptcy might affect your situation, contact an experienced debt relief law firm such as Harold Shepley & Associates. They will be able to answer your questions with a free consultation.
Contact us today at 1-866-284-7062 or visit us at www.shepleylaw.com to find out more information on your debt relief options.
July 3, 2012 Posted in Bankruptcy, Chapter 13, Chapter 7, Uncategorized Tagged bankruptcy lawyer, Harold Shepley & Associates, joint debt, joint property, Pennsylvania bankruptcy attorney Leave a comment
