Will bankruptcy affect my spouse?
A worry for many people going bankrupt is whether their spouse will be affected?
My answer to that question is: did your spouse sign on any of your debts?
If the answer is yes, then the answer to the original question is that your spouse will be affected.
Many people assume debts are 50-50, that is, they are shared equally between whomever owes the money. Most debts however, are joint and severally liable. These are fancy words meaning that if one person cannot pay the debts, then the other person becomes liable for the full amount. This means that if one person who has signed on the debt goes bankrupt, the other person becomes responsible to pay the full amount.
If you are experiencing financial problems, do not hide them from your spouse - they probably have a good idea something is bothering you. And if they have co-signed on the debt, they will know soon enough if you are unable to pay that debt.
Make an appointment with our office by calling 310-PLAN or 435-1500 for the London office and come in with your spouse to discuss your situation and learn about your options.
