Bankruptcy and Marriage

One of the most important moments in a couple’s life is marriage. It also represents a bureaucratic moment, where a contract is signed, and from its rights and duties are agreed upon. Assets may be defined before the ceremony through a prenuptial agreement.

When a union is involved, and property division is not defined, most states consider the property as joint property. This information will make a difference when the couple finds themselves in a situation involving bankruptcy. If one spouse files bankruptcy, the other spouse may not be protected from the court regarding the debt.

Exempt Property

If the non-filing spouse’s property is exempt, the courts may not seize it to be sold for payment on the debt. The bankruptcy trustee will assess all of the property. Any property obtained while married will be considered community property.

Credit Report

If your spouse files bankruptcy alone, their credit report alone will reflect that. If you file bankruptcy jointly, both of the credit reports will have the bankruptcy listed on them.
Although the possible occurrence of bankruptcy is a cause of fear for many, in most cases, it is a resource that comes to solve difficult situations. Without any intervention, your financial difficulties could worsen, making it difficult for all parties involved.

If you are married or about to get married and have overwhelming debt, contact a Hidalgo County bankruptcy attorney to find out your best financial relief options.