You know you want to walk down the aisle with your significant other, but you do not know when to file for bankruptcy. Should you file before saying, “I do,” or wait until after?
Experian may have the answers you need. Start your marriage on the right financial foot.
File before
If your soon-to-be spouse has less debt than you, consider filing for bankruptcy before tying the knot. That way, you do not have to worry as much about ruining your spouse’s finances. If you feel that filing Chapter 7 bankruptcy makes the most sense for your financial situation, do so before getting married. If you wait until after to file, you may not meet Chapter 7’s income requirement because your spouse’s income becomes part of yours.
File after
Do you and your betrothed both have substantial debt to wade through? If so, wait to file until after signing a marriage certificate. That way, the two of you only pay legal fees and court costs once for the both of you. If either you or your soon-to-be spouse has sizable real estate assets, reconsider filing after marriage to protect your property.
File to safeguard your spouse’s credit
Another factor to think about regarding bankruptcy timing is how filing affects your husband’s or wife’s credit. Chapter 7 remains on your credit report for 10 years after you file, but Chapter 13 appears for seven years. As long as you file for bankruptcy before your wedding ceremony, you do not have to worry about either chapter appearing on your partner’s credit report.
Create a bankruptcy filing strategy while planning your wedding. A thorough plan helps remove financial stress from your marital future.