Credit and Marriage

[tropicsgoddess]

I'm getting married and I have one major problem: credit. My credit is horrendous and I haven't been able to pay off my debt due to various reasons. I was told to file bankruptcy before getting married. My question is if I do it before my fiance and I marry, would that affect him as well and how much will it affect his credit (his credit is slightly better than mine)?

[Giggle Goose]

Just curious--who told you to file for bankruptcy? Was it a financial professional, or a well-meaning family member or friend?

Not sure if I can give a definitive answer, but I'll ask my mom. She's a mortage underwriter.

Edit--she told me you should probably consult an attorney. Apparently bankruptcy laws have changed, and courts are not as forgiving as they used to be. Of course, attorneys cost money, but hopefully someone who's more well-versed in bankruptcy law will be able to answer for you.

Good luck!!!

[csquared]

You really should consult an attorney/financial advisor.

[Bright_Star]

Your credit will NOT affect your future husband's credit. They're two separate things. It doesn't merge once you get married.

[taxguykarl]

Your credit will NOT affect your future husband's credit. They're two separate things. It doesn't merge once you get married.

The only way that the credit files will be co-mingled (for want of a better term), would be if you and Mr. tropicsgoddess were to apply for a loan (e.g. a mortgage) as co-borrowers; or if Mr. TG made you an authorized user on one of his credit lines.
That said, do consult with an attorney.

[tropicsgoddess]

A well meaning family member...won't say who. But I'm somewhat considering it because it's a huge amount of debt I tried and failed to pay off. I know it means I'll be "blackballed" for 7 years. But the fact that I tried and failed to pay such a big debt is what's making me possibly consider filing for bankruptcy though personally I'd rather pay off what I can to clear it.

[taxguykarl]

I know it means I'll be "blackballed" for 7 years. But the fact that I tried and failed to pay such a big debt is what's making me possibly consider filing for bankruptcy though personally I'd rather pay off what I can to clear it.

Actually BK's (even chapter 13 payment plans) stay on your credit report for 10 years. Charge off's and late payments only 7 (and a paid charge-off is only marginally better than a never-paid charge-off).
If you are planning to buy a home, consider having Mr. TG apply alone--that's likely to get you a better interest rate. Yes, I have seen quite a few couples in a boat like yours who have done just that.
Still talk to professionals about this. Another site to discuss this matter: Debtorboards...you may have some ammo for suing some of these creditors and/or collection agencies over improprieties on their part.

[KiaKat]

Credit reporting laws vary from state to state. There are some great resources out there for how to fix your credit, how to write Dunning letters, and how to handle your reports, without using one of those credit consolidation companies. Go find one, and start reading - you'll be amazed. It takes a bit of legwork, and some anxiety while you're going through all of it, but in the end it's worth it.

[taxguykarl]

TG:

Do these debts of yours happen to include: federal, state or local income taxes, child or spousal support, or student loans?

If so, your spouse will need to file Form 8379, the injured spouse form, so that his contribution to your joint refund does not get seized towards one of those debts....unless he wants to nobly contribute to those specific debts (be good to him in that case).

Yes, you can also file separately, but you may be losing some credits or other benefits. Truth-be-told, the next couple I see that comes out ahead filing separate will be the first.

[tropicsgoddess]

TG:

Do these debts of yours happen to include: federal, state or local income taxes, child or spousal support, or student loans?

If so, your spouse will need to file Form 8379, the injured spouse form, so that his contribution to your joint refund does not get seized towards one of those debts....unless he wants to nobly contribute to those specific debts (be good to him in that case).

Yes, you can also file separately, but you may be losing some credits or other benefits. Truth-be-told, the next couple I see that comes out ahead filing separate will be the first.

nope. It's credit card debt and also a medical bill from when I was in an accident (I was a pedestrian and the driver that hit me had shitty insurance that didn't cover bodily injury per the state of FL requirements)

[taxguykarl]

a medical bill from when I was in an accident (I was a pedestrian and the driver that hit me had shitty insurance that didn't cover bodily injury per the state of FL requirements)

Crud....even if you could obtain a judgement, chances are this fool couldn't pay anyway.