Marriage During A Bankruptcy

The new bankruptcy law adds many "curves" to consumer bankruptcy. One such issue is the effect of marriage after one spouse has filed bankruptcy. The new bankruptcy law in both Chapter 7 and Chapter 13 considers earnings of a non-filing spouse as well as changes in income and expense after the filing date. If a debtor who was unmarried when they filed bankruptcy chooses to get married to a working spouse reasonable soon after the filing date, the marriage could affect the bankruptcy. For example, a Chapter 13 debtor could be forced to amend the bankruptcy plan to increase monthly payments so as to take into consideration the earning contribution to family income of the new, working spouse. One way to prevent marriage from impacting an ongoing bankruptcy is for the spouses to enter into a marital contract that segregates by contract spousal earnings and expenses. In any event, marriage during a pending bankruptcy is more significant under the new bankruptcy law.