How Bankruptcy can Affect Your Relationships
The issue of bankruptcy can be a tricky one to broach when it comes to loved ones and friends. Whether you are married or have been dating for a short time, the emotional and financial strain that it can place on both of you can be overwhelming.One of the most common cause of arguments between couples is money, so if you are considering declaring yourself bankrupt, then speak to your partner about it.
Marriage in BankruptcyDeclaring yourself bankrupt may not only put financial strain on yourself, but there is a good risk that it will place extra burden on your relationships. Most married couples will have debts that they have taken out together. If you are the one declaring yourself bankrupt, but have a joint loan with your partner as part of your marriage, then the bill will be passed into their name. Any joint loans will not get wiped from your record, but will be transferred into the name of the other person holding the account.
If you are declaring yourself bankrupt but your partner is not, they will want to know why, so they may start to look into your partner’s accounts.
If you have a joint Mortgage, then the court will force the sale of the property, in order to pay back your debt. Once the sale has completed, then your partner will be able to take their share. They will also be given the option to buy your share from you, if they can afford it.
It is no good attempting to sell any assets that you have to your partner, in order to avoid them being taken away, the court will look carefully into who owns what, and investigate if they find wrongdoing.
Being Divorced and BankruptcyIf you have recently been through a divorce and declared yourself bankrupt, this should not make much difference, unless you and your partner still have joint debts together. When you went through a divorce you should have legally separated your assets, so there should be a clear line as to who owns what. If the assets are yours, then the courts will not be able to take these way from you, it is just if you own anything jointly.
Emotional Strain in Your RelationshipsEven if you don’t have any joint debts within your relationships, then it doesn’t mean that it won’t still have an effect on them. If you are living at the same house, then it is likely that the address you are both living at will be tarnished, because of your personal bankruptcy, and your partner won’t be able to get credit while living at that address. Things that you may take for granted in your relationship may start to cause arguments. If one of you has faced bankruptcy then you will not be able to get credit for anything you want to buy, and will find it hard to buy a house together for a few years.
Small things that you may not think about in relationships and when you are dating, such as going out for a meal, or planning a holiday can be difficult, If one of you is declared bankrupt, then you will no longer have access to easy credit. This may lead to feelings of resentment from one partner, because they will be left picking up the bill for everything.It is important to think carefully about Declaring yourself Bankrupt, and even more important if you have joint debt or a mortgage with your partner, your personal bankruptcy could also effect their future credit and anything they own with you.
Going through bankruptcy is never a pleasant time, so it is important to have your family, friends and your partner around you and discuss things with them, your bankruptcy may not just be about you.