Are You Considering A Wedding And Bankruptcy Filing All At Once? Watch Your Steps!

Are You Considering A Wedding And Bankruptcy Filing All At Once? Watch Your Steps!

If there’s been a consistent financial difficulty, it would be best if you considered filing for bankruptcy already. However, what if you’ve been sleeping on your marriage at the same time! Should you consider filing bankruptcy in Dallas before or after your wedding? Why not find out!

Bankruptcy laws and regulations change Before the 2005 bankruptcy law reform, the income of your spouse wouldn’t affect your eligibility for filing bankruptcy. The law has changed since then. Today, if you’re married, it can have an impact over your eligibility to file for bankruptcy, irrespective of what Chapter your case fits in. This, anyway, has nothing to do with your credit scores. Today, the aggregate household income counts when it comes to conducting bankruptcy means test. The test then determines if you can pay off at least a decent part of your debt. In case, for the six months prior to filing, there’s more than $100 of your income left after you have paid for all your necessary expenses, you might not be allowed to file for Chapter 7 bankruptcy.

Now, if you get married before the filing, both of your incomes will be used to decide on the eligibility.

Thus, if you look forward to filing for Chapter 7 bankruptcy, it might be best to file before you get married.

What about the credit?

Your personal credit history will determine your credit score. If you now, in collaboration with your spouse, file for joint bankruptcy, both of your credit scores will be affected. However, individual filing shouldn’t affect the other’s, married or not. If you, however, consider a joint credit or loan, such as a mortgage, either of your bankruptcy history will, then, affect the chances of being given the loan. The real timing of your wedding will not significantly affect this particular situation. Keep in mind that if an individual’s credit score is affected by their partner’s bankruptcy, it might be because of a filing error. In this scenario, make sure you get it corrected immediately.

What if both the partners are in debt?

If both the partners have been facing a shocking amount of debt already, it’s better to file for joint bankruptcy after the wedding. To file for a joint bankruptcy will cut down on the costs since you will file for a single bankruptcy case. Now, if both the partners decide on filing independently before the wedding, all legal fees and court costs will be reproduced. Also, double bankruptcy means twice a meeting with the creditors, trustees, etc.

However, remember that if one of the partners has a substantial amount of nonexempt properties, these will be part of the joint bankruptcy sale. That is exactly why it's better to file independently to protect those properties.

Finally, keep in mind that filing for bankruptcy together could shake your bankruptcy eligibility. Thus, be sure to check on your numbers before you take your nuptials vows.

Conclusion To file bankruptcy might be the wisest way for an individual to be back on track with their finances. If you’re already considering a wedding all at once, you will want to carefully weigh your options before hitting off the road with either decision. If you get married with the mounting financial differences, it will only fuel the marital tensions.

Recovery Law Group – one of the largest and trusted consumer protection law firms – offers you tailored bankruptcy consultation services in Fort Worth. Hence, if you’ve been considering filing bankruptcy already, file it with us.