General Question

_Whitetigress's avatar

What is the damage done to the spouse of someone who files for bankruptcy?

Asked by _Whitetigress (4349 points ) July 16th, 2012

I have heard this destroys both credit, but how badly? Thanks.

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4 Answers

Judi's avatar

The spouse either pays the debts or it shows up as uncollected or late on their credit report. Married couples usually file for bankruptcy together. It’s cheaper.

geeky_mama's avatar

According to this article it depends on what kind of bankruptcy (Chapt.7 vs. Chapt. 13)

My experience is limited to experiencing the bankruptcy of my husband’s ex-wife and I can tell you that although the debts were clearly hers (per the divorce decree and also incurred AFTER their divorce) creditors still came after my husband (her ex) and me. We ended up paying thousands of dollars and my husband’s credit rating was very adversely affected for about 5 years.
Best to be cautious – because my experience is that in bankruptcy the creditors can (and will) come after the other person to collect on debts – even those that are discharged in the bankruptcy.

_Whitetigress's avatar

Can someone go to the chat room and talk about deferred interest with me from BestBuy? See you in the pool

marinelife's avatar

If their monies are legally mingled, the creditors would go after the spouse.

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