Bankruptcy and Marriage

Does a Pre-Marriage Bankruptcy Affect Both Partners?

Does a pre-marriage bankruptcy affect a spouse's credit score or interest rates?

Anette

If your question is whether one partner's pre-marriage bankruptcy will affect the partner who did not file, the answer should be no. If the non-filing partner has a good credit score, marrying someone with a bad credit score should only affect joint applications for credit.

In this situation, the partner with the good credit score should apply for credit (only when necessary) in his or her own name. This would also apply to insurance applications, renting an apartment and any other act where the credit score might come into play. (If you're not sure, ask before making an application.)

In the meantime the other spouse should try to rebuild his or her credit by applying for a secured credit card in his or her name only, using only a portion of the credit line and paying the balance on time religiously.

Once a few years have passed the credit score of the spouse who went bankrupt should gradually improve. Only then should the couple consider applying for something that requires joint credit - generally a mortgage.

Of course this method will not work where the bankrupt spouse applies for a job or is going to be an additional insured on an auto policy. There's not much you can do about the job application, but there are auto insurers who do not use credit scores, so shop around.

Read this comprehensive article about the changes caused by bankruptcy reform.

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