I explicitly admonish my bankruptcy clients to apprise me of any potential change to marital status. Hence, if a singleton client suddenly takes a groom unannounced, I get the grumps; and it's not for lack of a wedding invitation.

One common concern with a debtor prepping for both bankruptcy and marriage is that the new spouse becomes liable for the debtor's debt. Not true. Premarital debt is separate debt. But, taking vows does affect the eligibility and outcome of the engaged (or elope-prone) bankruptcy debtor.

Bankruptcy is income-centric. We look to past, present, and future income. The less income you have, the more likely you are eligible for chapter 7 bankruptcy: a 3-month-long process that eliminates debt for $0.00 on the dollar. A single debtor needn't count a fiance's income (except for contributions he makes to her expenses). Yet, a married debtor's bankruptcy eligibility is based upon community income, meaning both spouses' income, even if one spouse isn't filing. A married debtor must count her husband's income as her own. Hence, you might conclude: if the spouse-to-be will increase the debtor's income, why not simply file before marrying?

Because significantly, the bankruptcy debtor's projected income is factored in as well. One must report reasonably-expected changes-to-come in the year post-filing. Hence, imminent or pending nuptials affect the eligibility equation assuming the debtor's spouse-to-be has income.

In conclusion, marital status is material. If you're about to tie the knot while preparing to file bankruptcy,

then you better stop,

look around,

lest your chapter 7 break down.

Contact us for legal representation:

www.bankonitsd.com

858-344-0500