If my husband's company goes bankrupt, will it affect my credit score? - Bankruptcy Law Questions and Answers- LawQA.com

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If my husband's company goes bankrupt, will it affect my credit score?

I have access to some of my husbands business accounts and he has recently informed me that his business might be going under. If he ends up filing for bankruptcy, will my name be attached to the file in any way?

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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That depends on whether you are a just an "authorized user" of the cards or if you actually signed the credit application. If you are just an authorized user there should be no problem.

Answer Applies to: California
Replied: 10/3/2011

Grace Law Offices of John F Geraghty Jr.
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It depends on if you are a signor on any business accounts. It depends on what type of legal corporate structure of the corporation and if you are an owner. If the answers to all are NO then you have nothing to worry about.

Answer Applies to: Georgia
Replied: 10/3/2011

Attorney at Law
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If you don't have any joint debts with your husband, his bankruptcy shouldn't hurt your credit. However, if you have a house mortgage or a car loan together with your husband, his bankruptcy will very possibly hurt your credit score unless he reaffirms those debts.

Answer Applies to: Virginia
Replied: 10/3/2011

Bankruptcy Law office of Bill Rubendall
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If you do not file a bankruptcy it will not show up on your credit report. If it does show up you can have it removed.

Answer Applies to: California
Replied: 10/3/2011

Answer By Kevin Heupel
Heupel Law
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The only way you'll be affected by your husband's business debt is if you signed a personal guarantee for those business debts. If so, then yes, you'll be affected in that you'll be required to pay the debt. However, if you have not signed a personal guarantee of his debts, then you are fine.

Answer Applies to: Colorado
Replied: 9/30/2011

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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If you are a co-signor on his credit cards or in some cases an authorized user, then you will be responsible for the debt even after he is relieved of the debt liability in the bankruptcy.

Answer Applies to: New York
Replied: 9/30/2011

Ashman Law Office
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Yes, it can. This depends a great deal on how you are "attached." Meet with a lawyer asap.

Answer Applies to: Georgia
Replied: 9/29/2011

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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A business' bankruptcy does not affect the credit of someone else.

Answer Applies to: Indiana
Replied: 9/29/2011

North Sound Law, PS
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It depends. If the company is a sole proprietorship then the debt likely extends to the two of you personally. If the company is a LLC or corporation and any of the debt was personally guaranteed (which is very common for small businesses) then filing business bankruptcy will trigger creditors seeking payment from you and your husband personally. The best thing to do is consult with an attorney to go over the whole financial picture for you and make recommendations accordingly.

Answer Applies to: Washington
Replied: 9/29/2011

Mauritz Van Niekerk, Attorneys at Law
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Yes if you signed for the credit and no if you did not.

Answer Applies to: New York
Replied: 9/29/2011

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