A recent question recently inspired this post. I feel as though it is particularly relevant considering the coinciding and increasing rates of bankruptcy and divorce. Let’s not forget that finances is one of the leading causes of divorce in America.
Q: I want to get married but my fiancée is planning on filing for bankruptcy, how will this affect me and should he file before or after we get married?
A: If you are currently unmarried and your fiancée wants to file for bankruptcy, he or she should do it before you get married.
If currently you have no credit accounts in common with your fiancée, your credit report should not be affected by your fiancée’s bankruptcy.
However, after marriage you should always try to apply obligations, such as apartments or other large purchases in the name of the non-filing spouse. However, be careful to keep vehicles in the name of the predominant driver to limit your liability. Generally in Florida, liability for motor vehicle accidents rests with the driver and the owner. Therefore, married couples should only title vehicles in the name of the predominant driver of that vehicle so that liability cannot attach to marital assets or the individual assets of your spouse (there are additional asset protection techniques that can protect you – please call The Pikramenos Law Group to make sure you and your business are fully protected).
Also, when you apply for joint credit purchases such as a car or a mortgage, the lender will review both your credit reports. Your fiancée’s bankruptcy will be noted, and your purchasing power may be lessened due to his or her credit history. On all credit reports subsequent to the bankruptcy, you should always list the non-filer’s name and social security number before that of the spouse who filed for bankruptcy.
Remember that the credit score of anyone who files for bankruptcy will not be stellar and will often inhibit the acquisition of certain leases or purchases. As such, the filing spouse’s credit report should be exposed or otherwise utilized as little as possible until their credit can be restored. A chapter 7 bankruptcy will disappear in 10 years, a Ch. 13 in 7 years. Quality credit scores can be achieved sooner than this though.
If you have further questions about this matter or about other related topics, please do not hesitate to contact this office.
{ 1 comment… read it below or add one }
i’m have filed chapter 13 , mrried but my wife didnt file, just me……i m trying to strip my second mortage which is unsecure debt. My wife is not on the first mortage, she is on the second mortage , im being told in order to strip the second mortage we both must do chapter 13???? is this true, any way around this???