How Does a Bankruptcy Affect You and Your Family

The question on how filing for bankruptcy affects other people in the family like a spouse is a common question by clients, but the other day a client brought up the question but with a twist, thus, the reason for this blog post.

Does Bankruptcy Affect My Spouse

If bankruptcy will affect your spouse really depends on the situation. If your spouse is not on the debt you are including in a bankruptcy, then the answer is no, it will not affect them.

However, if you share a credit card such as a co-signor and file for bankruptcy, then your spouse is responsible for that debt. If your spouse isn’t filing for bankruptcy, that’s fine because at least one of you has good credit while you build up your credit.

Does Bankruptcy Affect My Children

In my situation, it was different because the client told me her daughter was in the military and the daughter had advised her due to her security clearances, it could affect her. That’s not correct.

What a parent or son/daughter does in bankruptcy court is irrelevant. Unless one or the other was a co-signor on the debt or have assets titled together, it won’t affect the other person. There just isn’t connection unless there’s something more such as fraud and transferring of assets. But if it’s just simply the situation where a parent files, there will no issue for other members of the family.

Considering filing for a Chapter 7 bankruptcy? Then contact Attorney Alex Hernandez today for your free consultation. Saturday appointments are available.

Attorney Alex Hernandez

Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years. (904) 712-5565 or (305)-688-LAWS (5297). *Se Habla Español

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