One of the more asked questions by people I speak with is how will my spouse or partner going bankrupt affect me?

That is a broad question, and usually the question is directed at the fact they are concerned that the bankruptcy will affect their credit, or that they will be responsible for their partner or spouse's debts.

A person's credit history is just that person's credit history; credit histories are not shared. So unless you have a joint accounts or are a guarantor for someone, your spouse or partner going bankrupt does not affect your credit.

You also are not liable or responsible for their debts or accounts unless you are a co-signer, it is a jointly held debt, or you are a guarantor.

If you have assets with someone going bankrupt, that can be an issue. The person going bankrupt may have their portion of the asset reviewed for the bankruptcy. But as a non-bankrupt partner or spouse, you can allowed the opportunity to buy-out this portion of any interest in any asset jointly owned.

So your credit will be OK, and you should not lose any jointly held assets. But there is more to the story than just accounts, credit, credit history, money, assets and other material things.

What about the emotional side of things??

Being supportive of the person going bankrupt is important. They may feel bad as it is and they may very well be concerned about how their bankruptcy will impact their relationship and affect their partner or spouse.

Money and finances is one of the major causes of divorces and relationship breaking down.

I have said to many a couple I have spoke with, if you still love each other, what does it matter if one of you has become insolvent. Of course this is easy for me to say, but those living it do find it more complicated than this.

In some instances the person going bankrupt had hidden their finances and money issues away from their partner or spouse. Committing financial infidelity to coin a phrase.

Then there is the instance where a couple have jointly held assets such as a house and that house is in jeopardy due to the bankruptcy. Hard feelings can exist from these unexpected and complex issues.

One needs to be aware that if someone is insolvent and going bankrupt, there is more to it than just the numbers, the courts, and the stigma, there is an emotional side to it. Communication between spouses and partners can help with this.