If My Fiance Files Bankruptcy Does This Affect My Credit?
Generally speaking, if your name isn't on the bankruptcy petition along with your fiance, you won't suffer any immediate credit consequences from his bankruptcy discharge. However, as bankruptcy has long-lasting negative credit effects, your fiance's bankruptcy may affect your joint use of credit in the future. Additionally, if you share any debts with your fiance, you may end up receiving no benefit from his bankruptcy discharge.
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Credit Reports
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A credit report is a record of how you've handled your finances in the past. Credit reports contain information on all of the debts you have incurred, including car loans, home mortgages and credit cards. If you've ever been late in paying any of your accounts, the derogatory information will appear on your report for up to seven years, or 10 years in the case of a Chapter 7 bankruptcy. However, there's no such thing as a joint credit report, as each credit report belongs to one individual only. In this sense, your fiance declaring bankruptcy would not affect your credit report at all.
Joint Debt
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Your fiance is personally responsible for all of his own debt, and if he successfully obtains a discharge of his own debt, neither he nor you will be responsible for its repayment. However, if you share any joint debt, such as on a mortgage or a jointly-issued credit card, then you're fully responsible for the repayment of the debt, even if your fiance obtains a bankruptcy discharge. While he'll legally be exempt from repayment, with your name on the debt, the creditors will now pursue you for repayment. While the bankruptcy will still not appear on your credit report, if you fail to make any payments on the joint debt, then your credit report will reflect this.
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Future Credit
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If your fiance obtains a bankruptcy discharge and you have no joint debt, his credit score will suffer, while yours remains untouched. However, if you intend to take on any joint debt together in the future, such as if you buy a home together, you may suffer the consequences of his poor credit score. Lenders will be less likely to offer you a loan -- at least one with decent interest rates -- due to your fiance's poor credit history.
Community Property States
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After your marriage, if you live in one of the nine community property states, you'll be jointly liable with your spouse for any debt incurred during the marriage. This is true even if your husband incurs the debt in his name only. The community property states are Arizona, Washington, Idaho, Louisiana, California, Texas, New Mexico, Wisconsin and Nevada.
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