In the event you brought significant debt into your marriage which you incurred before you were married, certain states will consider that your separate debt, including Texas. If your spouse is not liable for your debt, such as it was incurred before the wedding, or they did not co-sign for the debt, an individual bankruptcy may be an option. Married debtors are able to file both Chapter 7 and Chapter 13 Bankruptcy individually. However, your spouse’s income may still influence which Chapter of Bankruptcy you ultimately file.
Keep in mind that all household income, which includes your spouse, is used to determine your eligibility for bankruptcy. In the event you do file bankruptcy individually, your filing will not affect your spouse’s individual credit rating. This is a common concern for debtors seeking to file individually. However, joint debts will still include a bankruptcy indication on your spouse’s credit report.
If you have any questions about Chapter 7 or Chapter 13 Bankruptcy, contact the Dallas bankruptcy attorneys at Fears Nachawati today. Call 1.866.705.7584 or send an email to fears@fnlawfirm.com for a free consultation.