Does filing for Chapter 7 Bankruptcy affect my spouse?

Filing for Chapter 7 Bankruptcy in South Dakota can affect your spouse, although to what extent depends on the individual situation. Generally, if your spouse is a designated co-debtor on any debts, those debts will be included in the bankruptcy filing and discharged along with any that you are solely responsible for. In addition, if your spouse earns enough income to be required to pay into the bankruptcy estate, he or she will be responsible for paying that amount. Your spouse may also be affected when it comes to how creditors view you. While the bankruptcy itself does not affect your spouse’s credit score, creditors may view your spouse as being financially linked to you and may be less willing to extend credit to them. In terms of joint assets, the bankruptcy filing will likely affect them. Generally, the bankruptcy trustee will be required to review those assets to determine whether any of them can be sold to pay back creditors. If any of the joint assets are sold, the proceeds will be shared by both you and your spouse. Finally, if you and your spouse file for Chapter 7 Bankruptcy together, the filing will affect both of you and both of your credit scores. This joint filing can also help both of you to rebuild your credit more quickly after the bankruptcy is complete.

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Does filing for Chapter 7 Bankruptcy affect my spouse?

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