Will My Non-Filing Spouse be Impacted by My Bankruptcy?
Just because you file bankruptcy does not mean your spouse has to file with you. If your spouse does not file, you may be wondering, will they be impacted by my filing?
If you do not have any joint debt, then just because you file your spouse should not have an impact on their credit. If you do have joint debt with your non-filing spouse, as long as the joint debt stays current outside of the bankruptcy filing your spouse’s credit should not be impacted. If joint debt is not current, your spouse can be collected against, because they are not protected by your bankruptcy. An exception would be certain debts in a chapter 13 co-debtor stay.
With non-filing spouses, they will have to provide their income for the last six months. This is because your spouse’s income is factored into the means test, to calculate average household income. Also, the bankruptcy income and expenses schedules look at the household, including income and expenses of your non-filing spouse. This is the case, even if you and your spouse keep all of your finances separate.
Your non-filing spouse’s solely owned property should not be impacted by you filing. Most attorneys will make a disclosure on the case that says your non-filing spouse owns their own assets that are not part of your bankruptcy estate. If you own joint property with your spouse, only your interest in the property (usually 50%) will be factored into the bankruptcy estate.
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For any questions you have regarding your non-filing spouse or bankruptcy in general, visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!
