Does filing for Chapter 7 Bankruptcy affect my spouse?

Yes, filing for Chapter 7 Bankruptcy can affect your spouse. In Idaho, if a husband and wife share debts, both are held liable for those debts, meaning both parties must agree to the filing of Chapter 7 Bankruptcy. The filing of Chapter 7 Bankruptcy will also impact credit ratings of both spouses, as it is reported on both credit reports and may stay on the credit report for up to 10 years. If you and your spouse have filing jointly for Chapter 7 Bankruptcy, this could also impact your spouse’s ability to qualify for credit in the future. Additionally, debts that are jointly owned may be discharged in the bankruptcy, which means that the creditor can no longer pursue collections against either spouse. Finally, filing for Chapter 7 Bankruptcy may impact the availability and cost of future insurance, such as health, auto, or life insurance. Since insurance companies look at an applicant’s credit history when determining premium rates, the filing of Chapter 7 Bankruptcy may lead to higher insurance rates for both spouses. In short, filing for Chapter 7 Bankruptcy may impact both you and your spouse, financially and otherwise. It is important to consider all of the implications of filing for bankruptcy before making your decision.

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