# Long-term effects of bankruptcy? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [December 12, 2008, 3:50pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889 "2008-12-12T15:50:24Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![Atomicflea](https://avatars.discourse-cdn.com/v4/letter/a/58956e/32.png) [@Atomicflea](https://boards.straightdope.com/u/Atomicflea)\ **Post date:** [December 12, 2008, 3:50pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/1 "2008-12-12T15:50:24Z")
I have a friend who is considering filing for bankruptcy. He makes about $3K net per month, and is getting a divorce. His loan and cc debt totals up to roughly $40K, which is about half interest.He is dejected and worried because he is currently working four jobs to try to pay everything off and cannot, and his wife, who he still cares for, may carry the burden of debt if he does not resolve it. He called to look into consolidation and settlement, but his payments would be astronomical and/or he would be paying for longer than the 7-year blight of a Chapter 13 filing. He says he knows people that have done this and own houses now. I can’t come up with anything on Google that says there are long-term or permanent consequences to this. Anyone have any advice, or have you been through this? ---
**Author:** ![alice\_in\_wonderland](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alice_in_wonderland/32/176_2.png) [@alice\_in\_wonderland](https://boards.straightdope.com/u/alice_in_wonderland)\ **Post date:** [December 12, 2008, 4:34pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/2 "2008-12-12T16:34:07Z")
Well, I personally know two people who filed bankruptcy (in Canada) and both of them have managed to get their shit together and now own homes, cars. etc. However, both of them were single when they filed - depending on where your friend is, filing could have serious implications for his wife - not just him. He should probably talk to a bankruptcy lawyer and find out if he would even qualify given his income, dept, etc, and what sort of implications it could have for his wife. ---
**Author:** ![Atomicflea](https://avatars.discourse-cdn.com/v4/letter/a/58956e/32.png) [@Atomicflea](https://boards.straightdope.com/u/Atomicflea)\ **Post date:** [December 12, 2008, 4:44pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/3 "2008-12-12T16:44:58Z")
He spoke to his divorce lawyer, who counselled him to take on the bulk of the debt as part of the divorce settlement, then file for Ch. 13 once it’s final. ---
**Author:** ![alice\_in\_wonderland](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alice_in_wonderland/32/176_2.png) [@alice\_in\_wonderland](https://boards.straightdope.com/u/alice_in_wonderland)\ **Post date:** [December 12, 2008, 7:59pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/4 "2008-12-12T19:59:56Z")
> [@Atomicflea](#): > > He spoke to his divorce lawyer, who counselled him to take on the bulk of the debt as part of the divorce settlement, then file for Ch. 13 once it’s final. Humm. I seem to recall horror stories of divorced couples where one party files for bankruptcy so the creditors went after the other one, divorce decrees be damned, but IANAL so perhaps this would work. ---
**Author:** ![Atomicflea](https://avatars.discourse-cdn.com/v4/letter/a/58956e/32.png) [@Atomicflea](https://boards.straightdope.com/u/Atomicflea)\ **Post date:** [December 12, 2008, 8:23pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/5 "2008-12-12T20:23:02Z")
> [@alice\_in\_wonderland](#): > > Humm. I seem to recall horror stories of divorced couples where one party files for bankruptcy so the creditors went after the other one, divorce decrees be damned, but IANAL so perhaps this would work. Best. Acronym. Ever. ---
**Author:** ![SeaDragonTattoo](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@SeaDragonTattoo](https://boards.straightdope.com/u/SeaDragonTattoo)\ **Post date:** [December 13, 2008, 2:00am UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/6 "2008-12-13T02:00:59Z")
> [@alice\_in\_wonderland](#): > > Humm. I seem to recall horror stories of divorced couples where one party files for bankruptcy so the creditors went after the other one, divorce decrees be damned, but IANAL so perhaps this would work. In my experience with people’s bankruptcy filings ( I know a few who’ve gone through it to keep their houses), the divorce decree may be moot to the creditors if the debt was incurred together. Are they both on the credit cards? Were they when the cards were opened? Even if she was removed first, then finalized the divorce with him responsible for the debt, the creditors won’t care, she incurred the debt, too. It might depend on the state as well. ---
**Author:** ![Atomicflea](https://avatars.discourse-cdn.com/v4/letter/a/58956e/32.png) [@Atomicflea](https://boards.straightdope.com/u/Atomicflea)\ **Post date:** [December 13, 2008, 2:21am UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/7 "2008-12-13T02:21:58Z")
> [@SeaDragonTattoo](#): > > Are they both on the credit cards? Were they when the cards were opened? Even if she was removed first, then finalized the divorce with him responsible for the debt, the creditors won’t care, she incurred the debt, too. It might depend on the state as well. She was not on the cards. He incurred the bulk of the debt as a result of a failed business. He never filed bankruptcy for the business. What he did is took out a loan and put a lot on credit cards, which he has since been spotty on repaying due to a lack of funds. ---
**Author:** ![Quartz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quartz/32/267_2.png) [@Quartz](https://boards.straightdope.com/u/Quartz)\ **Post date:** [December 13, 2008, 10:11am UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/8 "2008-12-13T10:11:04Z")
Why can’t she help with the debt? The marriage vows are ‘for richer, for poorer’, after all. ---
**Author:** ![AngelicGemma](https://avatars.discourse-cdn.com/v4/letter/a/439d5e/32.png) [@AngelicGemma](https://boards.straightdope.com/u/AngelicGemma)\ **Post date:** [December 13, 2008, 4:01pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/9 "2008-12-13T16:01:03Z")
> [@Quartz](#): > > Why can’t she help with the debt? The marriage vows are ‘for richer, for poorer’, after all. I’m pretty sure the marriage vows go out of the window when you’re getting a divorce. ---
**Author:** ![Quartz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quartz/32/267_2.png) [@Quartz](https://boards.straightdope.com/u/Quartz)\ **Post date:** [December 13, 2008, 4:14pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/10 "2008-12-13T16:14:19Z")
So she’s leaving him and he wants to take all the debts on himself. Very noble of him; very silly unless there are children involved. ---
**Author:** ![papergirl](https://avatars.discourse-cdn.com/v4/letter/p/aca169/32.png) [@papergirl](https://boards.straightdope.com/u/papergirl)\ **Post date:** [December 13, 2008, 5:30pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/11 "2008-12-13T17:30:04Z")
I declared bankruptcy about 3 years ago. My ex was held liable for the mortgage on our house, because the loan was in both our names. Otherwise, the only debt addressed by the bk was mine alone. I got my shit together, improved my credit, and bought a house (on my own, less income than your pal, low down payment, conventional fixed-rate interest) within 3 years. It was tough, but you just have to be willing to take one step at a time and do what the pros tell you to. It can be done. Not easily, but still. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [December 13, 2008, 11:22pm UTC](https://boards.straightdope.com/t/long-term-effects-of-bankruptcy/476889/12 "2008-12-13T23:22:22Z")
You can almost always get a car loan or other credit if you’re willing to take on the interest rate that comes with it. We used to find financing for people with bad history or bankruptcies, but the interest rates were around 30%.