How Does Bankruptcy Affect My Family in Massachusetts?

For many individuals, bankruptcy may be the right choice. But when you have a family, you need to consider the needs of your family as well as your own. Bankruptcy might be the best choice for you personally, but how could this decision affect your spouse or your children? This
is a common concern for individuals in Massachusetts who are considering bankruptcy. Before you declare bankruptcy, it is important to understand the wider implications of this choice.

If you have questions about how your bankruptcy might affect your family, reach out to an experienced bankruptcy attorney at your earliest convenience. Our legal professionals will provide you with all the answers you need, and we can help you develop a greater level of
confidence before you make your final decision.

Concerns About Joint Debts
In a marriage, many spouses work as a team when tackling financial matters. As such, they may have joint debts. One common scenario is a joint consolidation loan, and this is especially popular if one spouse has a better credit score than the other. If your spouse has co-signed any of your debts, your spouse will technically become liable for those debts if you file for bankruptcy. Even though you may have declared bankruptcy and escaped liability, your creditors will instead turn to your spouse and ask them to pay the debts. This is definitely something to consider, as both spouses will likely have to declare bankruptcy together to avoid this scenario. This is known as a “joint bankruptcy.” However, if one spouse has debts that are solely owned by them, it will not affect the other spouse. This problem only arises when debts are co-signed.

It Can Cause Strife Within the Family
It is important to understand that bankruptcy does have the potential to cause discord within the family. After you declare bankruptcy, you will likely need to change your lifestyle and make a number of sacrifices. Your children may be affected by these sacrifices, especially if they have grown accustomed to a certain standard of living. A spouse may also become resentful if they become liable for your debts. However, a divorce does not necessarily free a spouse from these obligations, and they will still be liable for the debts even if they divorce you. In other words, it is in the family’s best interests to stick together during this time.

Enlist the Help of a Qualified Attorney Today

If you have been searching the Massachusetts area for a qualified, experienced bankruptcy attorney, look no further than the Law Offices of Johnson, Sclafani & Moriarty. We understand that the decision to declare bankruptcy can be a difficult one, and there are many factors to consider before making your final choice. With our help, you can proceed in a manner that will have a minimal impact on your family. Together, we can pursue a positive legal outcome and a new sense of financial freedom. Book your consultation today. 413-732-8356