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Understanding the consequences of a spouse's bankruptcy

Pennsylvania residents who are worried about interest rates and applying for a loan debt management may be interested in some information on how bankruptcy can affect a couple. Marrying someone with debt issues can present some unforeseen problems that may need to be discussed prior to marriage.

When one spouse has gone through a bankruptcy, the other spouse may have concerns about how that will affect their marriage's finances. Because the bankruptcy will discharge many debts, the non-debtor spouse would not be responsible for them. However, if the debt discharged was secured by property, such as a home or car loan, the creditor may still pursue ownership of that property. Having a bankruptcy on someone's credit report will also affect their ability to get loans and the interest rate that they will pay on any loans they receive. This could have an effect on the couple's home purchase down the line if they apply jointly.

Some recommend that a couple have a serious discussion about finances prior to tying the knot. This discussion may need to include a number of issues, including future financial goals and how to reach them, how to clear up any debt prior to marriage and which role each spouse will play in financial planning. The couple might also develop a budget that allows them to meet these financial planning goals. In addition, separate bank accounts may be appropriate when creditors may want to seize one partner's funds.

An attorney may be able to help those who are looking to sort out their credit management strategies. The attorney may be able to assist with financial planning and debt relief methods, such as filing for bankruptcy.

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