Yes, marriage during Chapter 13 bankruptcy does or at least has the potential to affect the bankruptcy.
One of the initial steps in filing for Chapter 13 bankruptcy is disclosing your income and expenses so that the court, trustee, and creditors can determine your financial situation and capacity to pay on a Chapter 13 payment plan. Regarding an individual, the law examines the person's finances. Even if one spouse is not involved in the bankruptcy, the law considers the married couple's finances when a married person files for individual bankruptcy.
In addition, when determining a person's eligibility for bankruptcy, the individual's or couple's finances are compared to those of similarly situated individuals in the same state.
The law does not initially examine your financial situation when you file for bankruptcy. Rather, the law will evaluate your financial situation whenever there are alterations, as these alterations may impact your ability to pay the payment plan.
If you marry during a Chapter 13 bankruptcy, you may be able to pay more to your creditors because your monthly net income (income minus expenses) may increase if your new spouse helps pay household costs. However, if your new spouse is unemployed and does not contribute to household expenses, you may have less money available to apply to your payment plan.
You must inform the trustee of your marriage regardless of whether or not your new spouse is employed and contributes to household expenses. Your Chapter 13 bankruptcy payment plan may need to be modified to reflect your new capacity to pay or inability to pay, depending on the circumstances.
Even though your new spouse can affect your payment plan, they will not be included in your bankruptcy.
This is commonplace knowledge. Consult an attorney licensed in your state if you require specific information or have any queries of any kind.
This article may be republished with no changes to the language or author connections.
" - https://www.affordablecebu.com/
