When it comes to the world of credit reporting, almost anything can happen. It is entirely possible that your spouse's bankruptcy can show up on your credit report. However, whether it should be there depends on whether your spouse filed individually, whether you had any joint debts, and whether an error has occurred.
Single Name Bankruptcy
A credit report is meant to reflect the credit history of one individual only. This is true even if you are married. One of the benefits of filing a bankruptcy in one spouse's name only is that it allows the other spouse's credit to remain untouched. In most cases in which a single-name bankruptcy is warranted, the non-filing spouse's credit report is untouched. In most cases, your credit report should remain unaffected if your spouse files bankruptcy.
Joint Debts
If you have joint debts with your spouse, it might make more sense to file a joint bankruptcy petition rather than having only one spouse file. If your spouse files a single-name bankruptcy, you will still remain liable for the full amount of the joint debt. While the bankruptcy will be noted on your spouse's credit report, you will still have to pay off the debt, meaning you effectively received all of the downside of bankruptcy without any of the upside, in the form of the discharge of debt. Even worse, as a non-filing spouse, you still will most likely have a damaged credit report from the fact that bankruptcy was filed on debt for which you are responsible.
Jointly Filed Bankruptcy
In some cases, it may make more financial sense for you to file a joint bankruptcy petition with your spouse. This is particularly true if you have joint debts, or if you live in a community property state. However, if your spouse files a joint petition it will be reflected on your credit report as well.
Credit Report Errors
In any type of financial or legal reporting, errors can occur. Credit reports seem particularly prone to mistakes. A 2004 report by the National Association of State Public Interest Research Groups (PIRGs) indicates that up to 79 percent of consumer credit reports have at least one type of error. If a creditor inadvertently or intentionally listed your spouse's bankruptcy on your credit report, even if you did not file yourself, you can dispute the presence of the entry and ask the credit reporting agencies to correct your report.
Tags: your spouse, credit report, your credit, your credit report, joint debts
