Will My Bankruptcy Affect My Spouse’s Credit

Kevin Checkett
A woman sorting through her credit card debt.

Bankruptcy represents a stressful time for couples, but what happens if only one spouse declares bankruptcy? Someone considering bankruptcy in this situation might be worried that their bankruptcy might also affect their spouse's credit.

The lawyers at Checkett, Pauly, Bay & Morgan explain how one spouse might be affected if the other declares bankruptcy.

Personal vs. Shared Debt

When a couple gets married, they automatically assume everything becomes shared, and in many cases that is true. But debt, however, legally, only belongs to the person who borrowed the money under their name. If a couple takes out a loan together, in both of their names, it becomes a shared debt. Or if both spouses open a credit card account with both people listed on the card, then any debt accrued belongs to both.

If a person has a debt from before they are married, or if they take out a loan or open a card only in their name, then their spouse is not legally responsible for that debt.

Credit Reports Can Reveal Shared Debts

One of the quickest ways to see who a debt belongs to is to check the monthly bill statement. In most cases, this should show everyone listed under the account.

If you aren’t sure if a debt is shared by both spouses, another easy way to find out is to pull a credit report. The credit report for each person should show what debts they are personally responsible for and how those debts affect their current credit score. If a debt shows on both spouses' credit reports, it is a shared debt.

Can One Spouse File Bankruptcy?

Yes, even if they are married, a person can file for bankruptcy for their debts. If the debts belong only to one spouse, then that person can file bankruptcy independently.

Will One Spouse's Bankruptcy Affect the Other Spouse?

This is where it is important to understand which debts are shared. Any debts shared between the person who files bankruptcy and their spouse will be affected and can change both credit scores. However, if all the debts under the bankruptcy are personal, it should not alter the spouse's credit. A credible law firm can help you navigate your bankruptcy and ensure it doesn’t affect your spouse’s credit, if possible.

Call Checkett, Pauly, Bay & Morgan in Carthage, MO

The lawyers at Checkett, Pauly, Bay & Morgan can assist you with your bankruptcy and help with any questions you have. Contact us online or by calling.