Posted on May 31, 2009 at 2:06 pm or would I have to involve my spouse in a bankruptcy if that is the route I decide to take?

Posted on May 31, 2009 at 2:31 pm Yes Gale, you can file bankruptcy without your spouse. However, there are a few things to keep in mind. First, if you and your spouse are both liable for the debt incurred (I.E. a joint credit card account) then the non-filing spouse may be looked to for repayment if it is a Chapter 7 Bankruptcy case. This is not true for Chapter 13 cases as the filing spouse will be making monthly installment payments to a court appointed trustee who will disperse funds to each creditor. Another important factor to consider is any joint property the two of you may have. It is possible that the court appointed trustee will look into joint property as a possible means of repaying the filing spouse's creditors. This will also depend on whether or not you live in a community property state or not. In terms of credit report issues, I know there has been some confusion lately as to whether or not a bankruptcy will appear on the non-filing spouse's report. Can anyone elaborate on this?

Posted on May 31, 2009 at 9:40 pm The bankruptcy will only affect the non-filing spouse unless the debt that is being petitioned for-- is joint. The court though will ask for the non-filing spouse's financial situation like salary and assets to determine which bankruptcy type is going to be granted the filing spouse. This also goes for Chapter 13. While the non-filing spouse will not be involved with the repayment plan, the court would still ask for his/her financial situation.Each spouse has their own individual credit report and the non-filing spouse's credit history will not directly reflect on the filing spouse's bankruptcy petition--unless they have joint debts.

Posted on June 1, 2009 at 11:53 pm Yes, you can definitely file alone, but how this would affect your spouse depends on your state's property laws and whether the accounts are joint.  You'll know they're joint if you both signed the loan, and Steven explained how this would affect your husband or wife pretty clearly above.  In terms of the state property laws, Steven also explained the community property stuff well.  One thing he left out is that even in a community property state, if you file without your spouse, your creditors still cannot go after him or her for repayment, even for a Chapter 7 and even if the debts were accumulated during the marriage.  Another thing to add on:  in tenancy by the entirety states, if your debt is not joint but your property is and you file without your spouse, 100% of your property is protected.  Note some states only allow this for real estate.  In common law states, if your debt is not joint but your property is and file alone, only 50% of the property's equity is protected from liquidation in a Chapter 7.