Should You File Bankruptcy Before Getting Married?

Planning a wedding and considering bankruptcy? Timing matters more than you think.

Filing before marriage can help you qualify for Chapter 7 more easily. Your future spouse’s finances stay protected. You both start fresh.

Sometimes waiting makes sense. Filing jointly after marriage could save on court fees. If you both carry significant debt, a joint case might eliminate more.

Key Factors To Consider Before You Decide

Your financial situation determines the best timing. Here’s what shapes your decision:

• Your income: Chapter 7 has strict income limits. Filing before marriage means only your income counts. After marriage, both incomes factor into eligibility calculations.
• Your future spouse’s property: Your case only includes your property before marriage. After marriage, some of your spouse’s assets could become part of your case.
• Joint debts or assets: Shared debts or property may appear in your case either way. Marriage changes how courts treat them.
• Credit scores: Your bankruptcy only affects your credit report. Your future spouse’s credit stays untouched unless they’re listed on your debts.
• Cost and convenience: Filing jointly after marriage costs less in court fees. If only one of you has debt, filing separately makes more sense.

No single answer works for everyone. If only you carry significant debt, filing Chapter 7 before the wedding simplifies everything. You avoid bringing that debt into your shared financial life.

Both struggling with debt? A joint filing after marriage might work better. You’ll need to weigh your specific circumstances.

Why Filing Chapter 7 Before Marriage Often Works Better

Before your wedding, bankruptcy law treats you as separate people. Only your finances matter.

Your case includes:

• Only your property
• Only your debt
• Only your income in the means test

Individual bankruptcy filings stay simpler. Fewer complications mean faster processing.

Chapter 7 moves quickly. Most cases wrap up in 4-6 months. After the court grants your bankruptcy discharge, you’re done.

Chapter 7 eliminates credit card debt, medical bills, and personal loans. Past-due utility bills disappear too. You start married life free from old debts, judgments, lawsuits, or wage garnishments.

Want to explore if Chapter 7 makes sense for your situation? You can speak with a bankruptcy attorney for free to understand your options.

What Changes If You File After Marriage

Filing Chapter 7 after marriage adds complexity. Your situation depends on filing jointly or individually.

Joint Filing

You include both spouses’ information in one case. You’ll list combined income, assets, debts, and expenses.

Individual Filing

You can file bankruptcy without your spouse. You still need to include your spouse’s income for the means test. Your spouse’s separate debts and assets usually don’t count unless jointly owned.

How Marriage Affects Chapter 7 Eligibility

Chapter 7 has income limits. Marriage changes how courts count your income.

The means test examines full household income. Filing before marriage means only your income counts. Filing after marriage includes your spouse’s full income, even if they don’t file with you.

Higher household income makes qualifying harder. Your spouse’s earnings could push you over Chapter 7 limits. If your spouse makes significantly more, you might not qualify.

A marital adjustment deduction might help. You can subtract your spouse’s expenses that don’t benefit the household. Child support, alimony, or separate student loan payments qualify. You’ll need documentation for these deductions.

How Marriage Affects Property and Exemptions

Most people keep their property in Chapter 7. Exemptions protect certain assets.

Exemptions are legal protections for essential items. You can keep your car, household goods, and personal belongings. Every state sets different rules. Married couples may double some exemption amounts. Doubled exemptions protect more property.

Marriage affects what becomes part of your bankruptcy case. Where you live matters.

Community property states treat most marital purchases as shared property. Even if you file alone, most jointly owned items enter the bankruptcy estate.

Common-law states work differently. Only your property or jointly owned items are included. Your spouse’s separate property stays out unless they also file.

The bankruptcy trustee can only sell unprotected property. Available exemptions often protect everything you own. The key question isn’t what’s included but what’s protected.

Filing a Joint Bankruptcy Case

Only legally married couples can file jointly. You pay one filing fee instead of two.

Joint filing creates complications depending on income, property, and debt. Consider these factors:

• Combined income counts: The means test includes both incomes. High household income might disqualify you from Chapter 7. You may need Chapter 13 instead.
• All property is included: Everything either spouse owns enters the bankruptcy estate. Unprotected property could be sold to pay creditors.
• Both credit reports affected: Joint bankruptcy appears on both credit histories. Even a spouse with little debt takes a credit score hit.
• Possible asset case: Valuable unprotected property creates an asset case. Asset cases stay open longer than typical no-asset cases.

Timing affects your options. If you both qualify for Chapter 7 now but combined income would be too high after marriage, you lose the Chapter 7 option. Waiting could force you into Chapter 13 instead.

How Marriage Timing Impacts Chapter 13 Cases

Chapter 13 works differently from Chapter 7. You don’t eliminate debts quickly. Instead, you follow a repayment plan lasting 3-5 years.

The longer timeline means more paperwork and court oversight. Chapter 13 demands more from filers than Chapter 7.

People choose Chapter 13 because they:

• Earn too much for Chapter 7
• Need to catch up on missed mortgage or car payments
• Want to keep property Chapter 7 wouldn’t protect
• Filed Chapter 7 recently and can’t file again yet

Marriage still impacts Chapter 13 cases:

• Household income matters: Your repayment plan depends on income and expenses. Your spouse’s income may be included even if they don’t file. Higher income could increase required monthly payments.
• Spouse involvement varies: Your spouse doesn’t have to file with you. Some of their financial information still appears in your case.
• Planning ahead helps: Chapter 13 takes years to complete. Consider how marriage timing affects your budget, repayment plan, and financial goals.

Chapter 13 has more moving parts than Chapter 7. Most people benefit from speaking with a bankruptcy attorney before deciding. Major life events like marriage make professional guidance even more valuable.