Saturday, November 13, 2010

Reader Question: Bankruptcy and the Future?


One of my readers asked how bankruptcy affects a married couple.  If a couple files for bankruptcy while married, both of their credit scores will be affected in the same way.  In a Chapter 13 Bankruptcy, they will be able to possibly keep their assets in a payment plan; but in a Chapter 7 Bankruptcy, they will have to let go of all their assets and start over.

If you are getting married and have filed for bankruptcy, it's best to hell your fiance beforehand.  As long as your partner has good credit, he or she can be the borrower, and you can be the co-signer on loans that you take out.  As long as your score is high, and both of your income levels are sufficient, it should not be too much of a problem; however, expect to get turned down from some lenders do the co-signer bankruptcy.  Alternatively, you could just have the loan in his or her name (not yours), and the only reason to put you on as a co-signer would be to get the extra income needed to qualify for the loan.

49 comments:

  1. i follow you every day..nice blog

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  2. Fair enough, but you know, the rate of divorce in America IS 50%.... What happens when a couple (god-forbid) divorces among all this?

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  3. Good info thanks. Sra. Sanchez will be relieved.

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  4. very interesting, you surely wouldn't get married if you were taking on your partners debts, i wouldn't

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  5. "Best to (tell) your (fiancée) beforehand." Other than that a good post.

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  6. I won't get married for a long time >_<

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  7. lets hope my future spouse can manage our money well

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  8. marriage is bad, it only makes bankruptcy harder.

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  9. You can tell it was probably that snooty bitch on the right who caused the bankruptcy too.

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  10. It's a shame that credit can make or break your lives.

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  11. And this just explained why I won't get married. Not that I don't like the whole idea, but it's financialy the best thing to do!

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  12. i dont like that your credit scores can be combined when you get married =/

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  13. Everybody seems to be writing about this sort of junk these days...

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  14. Honestly I could never be with someone that has filed for bankruptcy. By doing so, that means they were in a position at one time in their life where they could not help themselves get out. I want a motivated girl in my life. Someone that is smart and willing to work hard. Not someone that just sits back and says "opps".

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  15. Just make sure you both arent in the same boat.

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  16. Very nice read! ill w8 for another update! :)

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  17. maybe if there were to be a divorce before declaring bankruptcy, the other spouse can support the other because of retained buying power

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  18. two mistakes: spending 'til bankruptcy and marriage
    a man should never do none, but specially the marriage part

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  19. i feel like borrowing money ruins a lot of relationships though

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  20. great info. had a few friends have to do this waiting to get married.

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  21. yeah i hope i never have to file bankruptcy!

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  22. It's good that it doesn't ruin your partners credit too

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  23. My friend went through the exact same issue.

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  24. Yeah I wouldn't even use the Mach line of razors. They're garbage. Get yourself a good safety razor.

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  25. Yeah, my wife's credit was pretty crappy when we got married, but she had told me ahead of time. I took the necessary actions to help raise hers while not dropping mine.

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  26. well it will stay more or less the same

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  27. Loans and relationships shouldn't mix.

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  28. Bankruptcy is bad enough, but divorce on top of it? Heh, it would be ;_;

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  29. Interesting, credit can really screw you over if you and your partner have not well figured out your finances.

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