Expert: Terry Leeders - 8/21/2007

Question
QUESTION: My fiance needs to file bankruptcy due to debts and changes in his job due to health problems. If we get married prior to this being completed can his creditor try to come after me to pay the debt. Our finances are completely separate, the debt was incurred prior to when we got together, and we would plan to keep finances separate until things are straightened out. I am just beginning to recover my credit, own a home in my name only, and have a car that is paid off. Can you offer advice?

ANSWER: It depends on where you live. some states are community property..and that might play into things.  If not, it usually won't affect you, unless there is any cosigned debts.  If you reside together, the court would look at the total household income and expenses as well.

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QUESTION: We live in Indiana together but have no joint debt. Our bank accounts are still the separate ones that we started with. He buys groceries and I pay the other expenses in relation to my home and the upkeep. We don't have any joint property. Does this help with a clearer answer. I won't get married if it will put my finances in jeopardy...this is why we have waited for two years. Due to his health and the fact that we each have teenaged children that we are influencing with our living situation, we really want to be able to be married. I just will not put at risk what I have worked so hard to establish.

Answer
The court looks at assets and debts.  If nothing cosigned, then those lenders can't come after you.  If  you have joint assets, your Indiana attorney needs to use your state exemptions to protect his share of the assets.
You should speak with an Indiana attorney to properly advise you about the exemptions. I am licensed only in Illinois.