Bankruptcy & Married Couples
I need help in trying to understand what happens to my credit report if my wife files for bankruptcy. We have been married over 10 years and have children. We do not have (and never had) any joint bank accounts or shared credit cards. Last week, I learned that she had accumulated a significant amount of debt (under $70,000) on her own credit cards. My name is not on any of her credit cards. Most of this debt is accumulated interest over the past year or so. She had a job with a decent income until 9 months ago and only made minimum payments, hence, the large interest. I have a job and very good credit. However, there is no way I can pay for this unexpected debt in a meaningful way. We are currently renting and were planning to buy a house within a year until this came up. Not sure how badly this will impact our plans. If she files for bankruptcy, will it appear on my credit report, considering the fact that the credit cards and the entire debt are solely on her name? Thanks for your help in advance.
Answer:
Assuming that you don't live in a community property state and have no joint assets or debts, her filing should have no impact on your credit. It should not affect your credit at all, even if she goes bankrupt. However, you should take note that if you jointly apply for credit on the house, it will come up and there could be some negative repercussions from that. Otherwise, your credit is spotless.
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