Effects of Bankruptcy on Your Spouse
When it comes to filing bankruptcy, it is surely not an easy decision to make. Like any other normal American, you are probably worried too about filing bankruptcy and what effects it might bring in for you. So, it is completely normal that you will have hundreds of questions in mind when you are filing bankruptcy. And why not? After all, it is always wiser to make a decision once you are well informed. So, if you are thinking about whether filing bankruptcy will have any effect on your spouse or not, you are at the right place. Our Pittsburgh bankruptcy lawyer has some information to give you. Take a look.Does Your Spouse Need to File for Bankruptcy With You?
The most important question that might come to your mind is that if your spouse has to file for bankruptcy with you. Don’t worry as the answer is no. There is no compulsion that your spouse should also file for bankruptcy with you. However, in some cases, if you and your spouse both file for bankruptcy separately, then you can get an added stay on your bankruptcy which will buy you a time window for arranging for the debts in some cases. The determining factor, in this case, will be your financial situation and where the debts are incurred. Also, whether you are filing for Chapter 7 or Chapter 13, that will determine what you need to do in this particular case.Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
When it comes to filing bankruptcy, which chapters you are filing for can make a significant difference in your case and your spouse’s involvement. When you are filing for Chapter 7 bankruptcy, it will eliminate most of the debts with the exceptions like student loans and so on. In a situation like this, your creditors will stop pursuing you immediately. However, they can reach out to your spouse who has not filed for bankruptcy and that can create some serious problems for both of you.
When you are filing for bankruptcy for Chapter 13, then things will be completely different. If the bankruptcy is addressed to the joint debts held by you and your legally married spouse, then the creditor cannot hound your non-filing spouse for the money as long as the bankruptcy is in effect.
While chapter 13 takes the time frame between three to five years, the chapter 7 bankruptcy will be resolved quickly, by three to six months.
Talking to our Pittsburgh bankruptcy lawyer will give you more insights into this.The Effect of Bankruptcy on Both of Your Credit Score
When you are asking about how bankruptcy is going to affect your spouse, it is also necessary to know how this will affect your credit score. Simply put, if you are filing bankruptcy together, it will have direct effects on your credit score. But if you are filing individually, then it won’t have much effect on the non-filing spouse. However, if you both are going for a joint loan, then your damaged credit score will affect the application.
You also need to consider the filing fee while you are filing for bankruptcy. Filing jointly will cost you less than filing separately.
So, if you are looking for more information or want a consultation from an experienced Pittsburgh bankruptcy lawyer, then come to us at Pittsburgh Bankruptcy Law Group. We are here to help you.