Your bankruptcy should not appear on your spouse’s credit report anywhere.
This is true even if you have joint debts.
Be careful, however, because credit reports often have mistakes.
A bankruptcy will appear on two places on your credit report, the “public records” section, and the tradelines of each individual account.
BANKRUPTCY AS A PUBLIC RECORD ON CREDIT REPORT
The public records section is where things like judgments, bankruptcies, and tax liens appear. The bankruptcy is listed on the public records section of the credit report only of the person who actually files for bankruptcy.
- Married couples do not share credit reports according to this article from Experian
So if you file a bankruptcy without your spouse, then the bankruptcy will not be on your spouse’s credit report.
BANKRUPTCY ON EACH TRADELINE
The tradelines on your credit report are the entries for each credit account that you have open, or have had in the last few years.
There is one tradeline per account, and it includes information like:
- The name of the creditor
- The payment history
- The current status of the account
The current status is things like “charged off, sent to collections,” or “included in bankruptcy.”
This article from Experian has more information about tradelines.
WHAT HAPPENS WHEN YOU FILE BANKRUPTCY?
When you file bankruptcy, each of your open credit accounts (tradelines) should say “included in bankruptcy.”
- If the credit account is joint with your spouse (or anyone else), the joint account holder’s tradeline should NOT say “included in bankruptcy”
This is because the joint account holder did not file bankruptcy, and still owes all of the money.
A Chapter 7 bankruptcy or Chapter 13 bankruptcy discharge only discharges the debts of the person who actually files the bankruptcy, not cosigners or joint account holders.
The reason that lenders ask for cosigners is that they are afraid that the primary borrower might not be able to repay the loan, so they want someone else to pay it in the event of a bankruptcy or insolvency.
WHAT TO DO NEXT
If you’re worried that filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Minnesota could affect your spouse’s credit report, then why not not speak to us now at 612.824.4357?
We’ll give you all the help and advice you need.
Alternatively, fill out our free Bankruptcy Evaluation Form to see if filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Minnesota is right for you.
We’re looking forward to helping you.
Photo credit: © Marko Volkmar | Dreamstime.com
