Will Your Spouse be Impacted by Your Bankruptcy?

Are you considering bankruptcy but are worried about whether your spouse will be affected? In short, the answer may be no, but you should speak with a San Antonio bankruptcy attorney to be sure.

Depending on what state you reside in, how you file for Chapter 7 bankruptcy may differ. The basic rule of thumb for bankruptcy is that your spouse will be not affected if he/she did not sign for any of your debt. Say, for example, you run a business and are considering bankruptcy. If your spouse did not start the business with you or open a line of credit with you, he/she may be protected from your bankruptcy.

The rules do change somewhat if you reside in a community property state. This means that any property that is acquired during your marriage is considered community property and could be affected by a Chapter 7 bankruptcy filing. In this case, either partner can file for bankruptcy without the other's approval, and as a result, could result in the sale of community property to satisfy the bankruptcy requirements.

If you have questions pertaining to bankruptcy in Texas, contact the Malaise Law Firm now.