Will Filing for Bankruptcy Affect My Spouse?

Are you married and considering filing for bankruptcy to resolve your debt? Are you worried that filing for bankruptcy on your own will impact your non-filing spouse because you share finances? In this blog, we explain how your spouse might be affected by your bankruptcy case.

Bankruptcy & Your Spouse

In most cases, if you file for bankruptcy as an individual, your spouse shouldn’t be affected. But if you have joint debts discharged, your bankruptcy filing may show on your non-filing spouse’s credit report. Although your obligation to repay the joint debt will be discharged when your bankruptcy is completed, your non-filing spouse will still be obligated to pay back the joint debt in full. If the joint debt goes delinquent, creditors can still go after your non-filing spouse to try to collect what is owed.

It is important to note that if you are living in a community property state and discharge your joint debts, your creditors cannot collect your marital community property after your bankruptcy, which benefits your spouse. Florida is not a community property state.

When you file for Chapter 13 bankruptcy, you can protect your spouse from creditors with the “Co-Debtor stay.” This stay will prevent creditors from pursuing your co-debtors during your bankruptcy case. This option is not available if you file for Chapter 7 bankruptcy.

Helping Clients Obtain Financial Freedom

At The Buchalter Law Group, we understand that filing for bankruptcy is a challenging process. Bankruptcy may affect the lives of your loved ones, which is why you should consult with an experienced lawyer to discuss all of your options under the law. We can review your case and help you understand what to expect from the bankruptcy process. We have helped countless families get a fresh start on their finances, and we are ready to get to work for you today!

Call our law firm today at (321) 320-6088 to request a free case consultation with a member of our team.

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