My Spouse Has a Bankruptcy in their Past – Will it Affect Me?Monday, April 15th, 2019, 9:01 am
If you’re planning on getting married or are already married and learn that your significant other has declared bankruptcy in the past, you may be concerned about how it will affect you. You’ve worked hard on your credit score and credit history, and you don’t want it to be destroyed by something your spouse did before the two of you were legally married.
The Good News – Your Credit Isn’t Affected
The good news is that your spouse’s bankruptcy won’t affect your credit in any way since it occurred before the two of you married. Even if they declared bankruptcy after you met or while you were engaged, it won’t impact your credit in any way as long as the two of you have never taken out a loan together. If you’ve never entangled your finances or credit in any way, your spouse’s bankruptcy will have no effect on you.
Going Forward, Things Will Be Different
However, moving forward as a married couple does mean you will need to factor in your spouse’s bankruptcy to your joint credit. If you apply together for a mortgage, vehicle loan, credit card, or any other type of loan or credit, that bankruptcy will impact your approval and your interest rate. Lenders will be looking at the two of you as a unit, and that includes both of your credit histories and scores.
What Can You Do?
If you’re concerned that your spouse’s bankruptcy will negatively impact a future loan, you can always consider applying for the loan individually. You won’t be able to include your spouse’s income or other positive factors, but you also won’t be affected by their bankruptcy and other negative factors, either.
You can also help your spouse recover from their bankruptcy by taking out small joint loans or opening a new credit card account in both of your names. As long as you keep up with all of the payments, your spouse will be able to show that they have begun rebuilding their credit.
If you have other questions about bankruptcy and how it can affect your credit, you can contact the experts at Michael F. Kanzer & Associates.