If one partner goes bankrupt, will it affect the others credit? 20 Answers as of November 15, 2011

No and no. Make sure that you state in your bankruptcy petition that your partner is claiming the house as homestead and exempt it.

If you signed onto a mortgage as co-signors or co-debtors, then you are both responsible for the mortgage. If one of the co-signors files for bankruptcy, then the other co-signor will be held liable for that debt. Depending on the terms of your mortgage and the lender, if you are still current and up-to-date on the mortgage, then the lender may work an arrangement with the non-filing bankruptcy co-signor to maintain the property.

Your partner's bankruptcy should not affect your credit.

Only if the co-debtor makes late payments or doesn't pay at all. The co-debtor's credit will NOT be affected UNLESS the mortgage becomes delinquent.

It should not have a long term affect on co person's credit. Filing for bankruptcy will not cause your home to be foreclosed if you are making the payments.

The house can't be taken away as long as the payments are current. In Minnesota, you can protect your equity in the home up to $360,000.00. Therefore, as long as you don't have more equity than $360,000.00 and the payments are current, your spouse can keep the property. If the spouse who files bankruptcy does not have ownership of the property, then it doesn't even matter how much equity there is. It shouldn't hurt the non-filing spouses credit as long as the mortgage payments are kept current.

First, your mortgage company will not foreclose unless there has been a default under the terms of the note and security instruments. While the language in these instruments is very broad and there are many situations that could technically be considered a default, it is very unlikely that your mortgage company will foreclose when the note is current. The lender wants the loan to remain in good standing. They do not want the property. They certainly cannot foreclose the property while your partner is under Bankruptcy protection, without first having the automatic stay lifted. With respect to the credit issue, it cannot be reported on your credit report that you filed for Bankruptcy. I have seen situations where a loan is reported as included in a Bankruptcy on the co-debtor's credit report.

The filing by one, does not effect the others credit if there are no joint accounts. Credit will only be effected, in this situation, if the mortgage is not paid on-time or if there are joint accounts.

Yes, it can affect the other's credit. Whether it affects the home itself depends on details you didn't post.

Usually, the only person affected is the one that files.