As if the idea of bankruptcy wasn’t stressful enough already, many people are also in the position of having to worry if it is going to affect their spouse. Officially, bankruptcy should have nothing to do with your spouse – but there are some indirect ways in which they could be affected.

Bankruptcies can only be administered individually, which means that each person must declare themselves, or be declared, bankrupt. It also means that a spouse cannot be declared bankrupt purely because you have been. If you become bankrupt it involves your debts, your credit file, your income and your assets. Problems may arise, though, when any debts are in joint names or any assets are jointly owned.

If you are jointly liable for a debt with someone, you will be released from that liability. The other party, however, will not. They will remain liable for the full amount of the debt, for banks do not halve debts when one person is no longer able to pay it. In most cases, so long as your spouse continues to make the full payments, the debt should continue on as it has been. In very extreme circumstances, the bank might demand full and immediate payment of the debt.