A young man came in for a consultation the other day. I asked him why he was thinking about bankruptcy. He told me that he had tried launching a business a few years earlier and had used credit cards that he had taken out in his name to pay for his living expenses while trying to get his business in the black. The business had ultimately gone under, and he didn’t think he could manage his personal finances paying hundreds of dollars in credit card interest every month. More importantly, he wanted to get his finances in order and under control before he got married.
I told him that in Colorado his debts would not become his fiance’s debts once they got married. Still, there are some good reasons to file before you get married.
If you are married when you file bankruptcy, we have to take into account your spouse’s income and expenses – even if you are filing alone. Including your spouse’s income could push you outside the income level for Chapter 7 bankruptcy and force you into filing Chapter 13 bankruptcy. If you can take advantage of Chapter 7 liquidation, you should. Even if it means delaying your nuptials for a short period. Beyond that, it’s probably a good idea not to get your future spouse tangled up in your bankruptcy. Planning a wedding is stressful enough.
If you are thinking about bankruptcy and making plans to get married, you should talk with a bankruptcy attorney right away.