Can I Marry Someone Who Is About To File Bankruptcy?

January 20, 2020
Can I Marry Someone Who Is About To File Bankruptcy?
Kelly Bankruptcy
Can I Marry Someone Who Is About To File Bankruptcy?

Jan 20 2020 |

/

Show Notes

Transcript:

Hello, this is Jeff Kelly bankruptcy attorney. And today I’m going to talk about can you marry someone who is about to file bankruptcy? And the answer is absolutely not. It’s not legal. Just kidding, of course. Just kidding. Just kidding. Relax. I know marriage can be a super scary proposition. You’ve got in-laws on the other side. You’ve got new potentially new brother in law’s and sister-in-laws. And now you’ve got more pressure on Thanksgiving and Christmas, and on and on and on. And then what happens if you also find out oh my gosh, the love of my life is loaded down with tonnes of debt. What should we do? Well, I think the worst thing you can do is to try to talk them out of filing bankruptcy.

I think filing for bankruptcy might be the the best thing you can do to help get your marriage off to a nice fresh start, get rid of that stuff if you can. If you wait until after the wedding takes place, then the income of both spouses will count on the bankruptcy means test. So in other words, if you are a high-income earner, you could end up disqualifying your future spouse from being eligible to file bankruptcy if they need to, if you wait until after the wedding.

However,

if a person has high income, and they need to file bankruptcy, and the person they’re going to marry has no income in that particular case, it might make sense to wait until after the wedding is over. So the person who has no income will be counted as a member of the household in the Means Test. So in a case like this marriage might actually help Someone become eligible to file bankruptcy. Here are some debt issues I think you might want to consider before you get married.

For IRS purposes, if you sign a joint tax return after your marriage, you will be held liable for the joint tax debt. It doesn’t matter if if the other spouse is the one who generates all the taxes. If you sign the joint tax return, your assets are at risk. If you have a joint checking account, and you become married, and your spouse gets sued, and they get a judgment against them, a creditor can take that judgment and they can go after your joint checking account. So imagine you know what that’s like you’re you’re married, things are going great and all sudden Wham o the joint checking account gets completely cleaned out by Some random creditor that sued, not good for a marriage, not good, much better to take care of that stuff.

But for the wedding. Let’s say you buy a house together. And you know, again, some judgment from the past pops up. The judgment creditor can put a lien on your house, if they got a five a, it’s going to attach to the joint owner. Again, that kind of stuff is not good for marriage. Another thing you might want to consider, you know, before marriage is student loans, man, I hate to think of how many marriages have never taken place because of student loans. Side note, student loans should be dischargeable in bankruptcy, just like every other debt, but they’re not because Congress changed the rules back in the 90s. And they created a form of economic slavery by making student loans Non-dischargeable in bankruptcy. So you got to ask yourself how much student loan debt does my spouse? Oh, how many years is it going to take before they pay it off? Do they have a handle on this? Is there is it likely they’re going to be able to pay this amount of debt off? If not, and you’re looking at some astronomical amount today?

Well, compound interest is one of the greatest miracles of the world and it’s great when it’s working in your favor. But when it’s not, man, the the debt doubles, it triples it, you know, over decades quadruples. So again, these are very important things you should consider. I think the smart move is to meet with a qualified bankruptcy attorney before you get married if you have debt, concerns about a spouse, get a review of the entire situation. Naturally, you want to start your marriage off on on solid footing. So why not take advantage of our free consultation? It doesn’t cost you anything.

Come sit down with us. Let’s review everything. We know you can go to annualcreditreport.com you can pull a free credit report for yourself and one for your spouse. There’s also Credit Karma. We have office locations in Marietta, Kennesaw in Douglasville, Dalton, Cartersville, Dallas, Georgia and Rome, Georgia. Give us a call 770818449 it always helps to explore all your options.

Have a great day.

Other Episodes

Episode

August 03, 2020 00:05:11
Episode Cover

File Bankruptcy without leaving your home

Transcript: Hello, this is bankruptcy attorney Jeff Kelly Today is August 3, 2020. And today I’m going to be talking about how you can currently file bankruptcy without ever leaving your home. One of the few good things that has come out as a result of the covid-19 pandemic is that you can now file bankruptcy without ever leaving your house. You can even attend your court hearing via telephone now from the comfort and safety of your home. Before COVID-19 hit, you had to physically appear in one of our offices, and a bankruptcy attorney had to see you physically sign the documents. And for many people who have to juggle busy work schedules and family schedules, it was difficult at times to physically get into the office. Traffic delays used to wreak havoc on some of our sign appointments. Now because of the shelter in place concerns, the bankruptcy court allows us to file your case without you ever having to come to one of our offices. Here’s how the process works. Step one, we conduct your free initial consultation with you by phone. During this conference, we want to review all of your debts, lawsuits, assets, income and expenses with you. Our goal is to get a feel for your entire situation. At the end of this free consultation, we will clearly explain to you why chapter 13 or chapter 7 bankruptcy is or is not a good option for you. Unlike many other bankruptcy law firms, you will be able to talk directly to an experienced bankruptcy attorney ...

Listen

Episode

May 19, 2020
Episode Cover

Will bankruptcy hurt my credit?

Will filing bankruptcy ruin your credit? Hello, my name is Jeff Kelly. I’m a bankruptcy attorney. I’ve been practicing for about 22 years now. And in today’s podcast, I’m going to answer that question. Well, I can just tell you right out of the gate, my goal as a bankruptcy attorney, when I have a client come in and meet with me, when it comes to credit, my goal is to take any expectations that they have about credit and just beat them into the ground. I don’t want people to come into bankruptcy with false ideas. And there’s nothing worse than unmet expectations. So, I tell people, “look, we are about to take a big giant wrecking ball and it’s going to go clunk, clunk, clunk, clunk, clunk! Boom, to your credit when you file.” But the funny thing is, the people who I meet with, who seem to be most concerned about their credit are people who have already had their credit ruined by garnishments and judgments and I have a client – I’ve had potential clients out – I just can’t do it. I just can’t afford to wreck my credit and I’m looking at it at their credit report and I’m like, “you’ve got to be kidding me. Your score is 550, you have 10 judgments against you. You’re currently being garnished. They’re taking 25% of your income.” So I think what’s going on is a lot of people – it’s very common for people to make decisions that are just based on emotion. And when it comes to whether to file or not to file bankruptcy, emotion really has to go ...

Listen

Episode

February 12, 2021 00:18:18
Episode Cover

How can an hot real estate market wreck your Chapter 7 bankruptcy?

Transcript: Intro Speaker: It’s time for KellyCanHelp hosted by Jeff Kelly, Attorney at Law with the law office of Jeffrey B. Kelly. And now here’s Jeff Kelly. Jeff Kelly: Hello, this is Jeff Kelly. And in today’s episode, I want to answer the question, is it possible to lose your home in a chapter 7 bankruptcy case? And the answer is yes. You know, this current real estate market is unbelievable. I’ve, I’ve been in practice since 1998. And I’ve never seen anything like it. I’ve never seen a real estate market where somebody in Rome, Georgia can put a house on the market and it sells within a week. So, because of that real estate values have become very problematic for chapter 7 clients. Let me give you an example. Let’s say you have somebody who, you know, 10 years ago, they bought a house for $100,000. And today, the tax assessor says it’s worth 120 Well, that wouldn’t be a problem. In in Georgia, a single person can exempt $21,500, a married couple can exempt $40-43,000. So when when could it become a problem? Jeff Kelly: Well, for one thing, even though the tax assessor says the house might be worth 120,000, it’s possible that it’s worth more, and a chapter 7 trustee. They are not bound by what the tax assessor says they’re not bound by what Zillow says, you know, honestly, they’re not even bound by what an appraiser says, a chapter 7 trustee has a strong incentive to sell your house if they can make money off of it. That’s, that’s how chapter 7 ...

Listen