If you have become so deeply buried in debt that you cannot foresee ever restoring your finances, and creditors are calling and sending collection letters every day, bankruptcy may represent an option for a fresh start. Bankruptcy takes a severe toll on your creditworthiness; however, it can help relieve severe financial stress. If you plan to get married soon, though, keep in mind that bankruptcy not only affects you but also indirectly affects your potential marriage partner.
Credit Availability
A bankruptcy can affect your personal credit for up to 10 years. Although the severity of a bankruptcy's impact on your credit score diminishes with time, you will likely be unable to obtain a credit card, auto loan or mortgage during the first two years after filing for bankruptcy protection. This means that you will have to rely on your spouse's credit to obtain loans and credit cards. Reliance on one spouse's credit can elevate her debt-to-income ratio, which can negatively impact her credit score.
Securing an Apartment
Filing for bankruptcy protection may hinder your efforts to lease an apartment when you get married. Landlords and rental agencies commonly use credit information as part of the applicant evaluation process and may refuse to lease you an apartment, even if your spouse has a high credit score, or they may accept you with a higher security deposit. You may have to lease a less desirable apartment for the first two years after bankruptcy, which can put a strain on the marriage.
Household Income
Creditors and landlords are not the only people who will use your credit information -- employers also commonly review credit files before deciding whether to hire an applicant. Although a potential employer cannot legally refuse to hire you solely because of a bankruptcy, the hiring manager can work around the law by finding another reason. Not having a job can definitely undercut marital bliss.
Considerations
Although bankruptcy can affect your potential spouse in several negative ways, it may also offer him benefits. He will not have to deal with collection calls and letters after you get married. He will not have to deal with your debt, so he can save for purchases such as a car or a home, providing a larger down payment when your credit improves. Also, you can focus on your marriage instead of constantly worrying about debt.
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