As a Joliet bankruptcy attorney, I am asked several questions with some regularity. For example, if I file for bankruptcy, will my spouse’s credit be affected?
The short answer is no. Filing bankruptcy is a voluntary issue and only the person who files for bankruptcy will have their credit affected. The only thing that might appear on the spouse’s credit report if the co-spouse files bankruptcy would be a notation for any co-debt if that debt was included in a bankruptcy. Otherwise, the spouse’s credit will not be affected in any way.
Another question is if I file for bankruptcy, will the creditor look to collect from my co-debtor?
The short answer to that question is yes. A creditor has the right to collect from either co-debtor even if one debtor eliminates the debt in bankruptcy. Look at it like this. Two spouses by a car together. One files bankruptcy. The spouse who filed bankruptcy will have no legal obligation to pay for that car but the co-spouse who did not file for bankruptcy will still owe on that car and the creditor could choose to collect against that spouse.
Lastly, will I have to go to court?
Most bankruptcy debtors will not ever have to appear in court as people perceive court. What we will probably have to appear at a Section 341 Meeting of Creditors. But all that is a meeting in a room with your lawyer, a trustee and possibly some creditors in very rare situations. You are going to swear the truth and accuracy of everything in your petition. As long as you have told your attorney everything up front and all the information is included in your bankruptcy petition, these meetings are very formulaic and are really nothing to be concerned about.
For more information, contact David Siegel at (847) 520-8100.