If you’re thinking about filing for bankruptcy, one of the biggest questions on your mind might be: “What does this mean for my spouse?”
The short answer? If you file individually, your spouse won’t automatically be responsible for your debts. But depending on how your finances are connected, they could still feel some effects.
Filing Alone: What It Means
When you file for bankruptcy individually, only your name—and your debts—are included in the case. That means:
- Your spouse does not have to file with you
- Their credit report remains untouched
- They are not liable for your individual debts
However, if you share debts or accounts, things can get more complicated.
Shared Debts and Co-Signed Loans
Do you and your spouse have joint credit cards, a mortgage, or loans that you both signed for? If so, bankruptcy only clears your legal responsibility for the debt—not your spouse’s.
Here’s what that looks like in real life:
- Co-Signed Loans: If your spouse co-signed your car loan, they’re still fully responsible for paying it—even after your discharge.
- Joint Credit Cards: Your portion of the balance may be wiped clean, but your spouse remains on the hook for the full amount.
Creditors can (and likely will) pursue your spouse for repayment on any shared debt.
Should You File Together?
If both you and your spouse are overwhelmed by debt, filing a joint bankruptcy might be a smart move. Whether it’s Chapter 7 or Chapter 13, a joint filing combines your debts, assets, and income into a single case.
Benefits of a Joint Filing:
- All shared debts are addressed at once
- You both receive a discharge on qualifying debts
- The process is simplified and may reduce attorney fees
- You get a financial reset together
Just remember: a joint filing impacts both credit scores and may have implications for jointly owned property, depending on your state laws.
What About Our Home, Income, and Assets?
Whether you file alone or together, what happens to your property depends on:
- Whether your state is a community property or separate property state
- The type of bankruptcy (Chapter 7 liquidates non-exempt assets, while Chapter 13 involves a repayment plan)
- How assets are titled—individually or jointly
Pennsylvania is a separate property state, which generally means your spouse’s individually owned assets are protected if they don’t file with you.
Bottom Line: Bankruptcy Is a Household Decision
Even if only one spouse files, bankruptcy can affect both partners—especially when debts are shared. Filing jointly may offer broader protection, but it comes with shared consequences like credit impact and legal disclosure.
Before making a decision, speak with a knowledgeable bankruptcy attorney. They can help you understand how filing will impact your spouse, evaluate your options, and guide you toward the best path for your financial future.
If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company 724-832-2499.