Marriage and Bankruptcy
Financial problems are often a source of contention in marriages, especially if large debts are burdening the family. If you and your spouse are experiencing overwhelming debt, you may consider filing for bankruptcy to get rid of the debt. However, timing is important. If you are yet to marry, it is essential to figure out whether you should file for bankruptcy before or after the marriage in such situations. The answer to that question lies in you and your partner's financial situation.
How can bankruptcy help to get rid of my debt?
Bankruptcy is a court-ordered procedure where you can eliminate a portion or all of your debt. Once you file for it, you can hope to get creditors off your back. While filing for bankruptcy could be very beneficial for your debts, you need to figure out the best time to file for it.
When should you file for bankruptcy before marriage?
In circumstances where you have burgeoning debt, but your partner does not, you should consider filing for the bankruptcy before the marriage. This will help to minimize the damage to your spouse's finances and credit health.
If you are considering filing for a Chapter 7 bankruptcy, you should consider doing so before the marriage. If you file after the marriage, then the court could consider your spouse’s income in addition to yours, and it might push you above the maximum limit allowed to file for Chapter 7. Conversely, if your soon to be spouse has no income, filing after marriage might actually help you qualify.
When should you file for bankruptcy after marriage?
In situations where you and your spouse both have huge debts, then you should file for bankruptcy after marriage. If you do so, you can save on many court fees as you would need to file only one combined case. It will also help you to save time.
If you would like more information about bankruptcy, contact a Roseville bankruptcy attorney.