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File Bankruptcy without spouse.. will it affect him?? HELP!!

Submitted by grlnew on Wed, 04/09/2008 - 19:59
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Here is my dilemma… I got into MAJOR credit card debt!!! $30,000 all in my name only, not my husband. We can no longer pay the credit cards (well, haven’t in months) and pay our regular bills. I was basically paying all our bills with our income.. and since we had none left over.. living off of credit cards in my name. I am in deep debt.. with John P Frye Law Office calling me, Atlantic Credit calling me and Allied calling me wanting money.. I have looked into debt settlement, but with them I can still get sued and there payments are still high. I was looking into Chapter 13 bankruptcy. I have an appointment next week and can’t wait. My problem is, I can’t let this hurt my husband’s credit. He has the good credit and we need it to stay good. I really don’t care about mine, its already crap. The house is in both our names.. if I will file, and we are joint on the house.. will this in any way affect him??? One bankrucpy firm told me yes, one told me no.. what do I do??? I know I have to tell him, but it will be easier if it wont affect him.. Please help.. any advice??????


I found some information at The Bankruptcy Law Network, I'll post it so you can read it. It was written by Bankruptcy Attorney Cathy Moran.

One of the most frequent questions asked about bankruptcy is whether spouses must file together. The answer is ???????no???????; one can file bankruptcy without their spouse. Married folk may file a joint case: one set of papers; one filing fee, but they are not required to.

There are many reasons why it may be advantageous to file without a spouse, depending on how property is held; who is liable for the debts; and whether a bankruptcy filing would adversely affect one spouse.

The filing spouse frequently worries about the impact of bankruptcy on the non filing spouse. The law provides that each individual has a separate credit file, for credit reporting purposes. Thus a married couple????????s credit worthiness is a blend of the contents of his file and her file. So a bankruptcy will affect future joint applications for credit. It should not, however, result in a bankruptcy notation in the non filer????????s credit record.

Bankruptcy or no, if the spouses are jointly liable on a loan and that loan goes unpaid after the bankruptcy, it will have an impact on the non filing spouse, but it is the nonpayment rather than the other????????s bankruptcy, that blots the credit record.

Good legal advice is necessary to evaluate whether there are non obvious issues that might drag the non filing spouse????????s affairs into the bankruptcy court.


Submitted by Shazzers on Wed, 04/09/2008 - 21:18

Shazzers

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I was wondering the same thing. Everything i have read points to you being able to file individually, but you really need to go to that consultation first to found out for sure. I am thinking about doing the same thing as you. I am not sure if it's going to do any good though because most of the debt we have is in my husband's name, about $140,00. My debt is about $40,000.


Submitted by kjeanangel on Wed, 04/09/2008 - 22:01

kjeanangel

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Have you explored all your possibilities before deciding on filing bankruptcy? trust me it ruins your financial future and stays on the credit for a longer time. It should always be the last resort.

However, some states will allow you to file a bankruptcy alone, but if your are residing in the community property state, then it will affect your spouse's credit anyway. the following states are in the list of community property states of USA:


  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin


Also, the household income needs to qualify the median income limit for filing bankruptcy, and you are required to include his income on it.

Why don't you try out the free financial consultation offered by this site to see if you can survive this mess without filing ch-13???


Submitted by tweetyturner on Wed, 04/09/2008 - 22:58

tweetyturner

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Thank you all for your help.. I did look into debt settlement program.. but the creditors can still sue me if they want.. before they get there settlement.. what is a financial consultation? How would they help? I don't have the money to pay.. so i need help.. has anyone worked with a debt settlement company?


Submitted by grlnew on Thu, 04/10/2008 - 06:06

grlnew

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If you are in a position to settle any of your debts, you can definitely do it on your own. I did manage to settle two of my debts on my own with no problems. I wish I had tried this before approaching a debt settlement company. I had worked with 2 and got ripped off, then sued by a couple of creditors. This could have been prevented if I hadn't wasted my time and money with the settlement companies.


Submitted by Tiffany99 on Tue, 04/29/2008 - 11:22

Tiffany99

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I'm concerned when I file bankruptcy that they can then turn to my husband and collect or garnish his wages, can they do that if all the accounts were opened when I was married to someone else and my current husband was only an authorized user not a signer.


Submitted by on Sat, 01/24/2009 - 10:49

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my husband filed bankruptcy but I did not. Our home is in both our names but was exempt from bankruptcy. One spouse filing will not affect the non-filing spouse and creditors cannot go after that person to collect a debt that they are not responsible for(not on the credit as having financial responsibility). However, once the bankruptcy is discharged I would suggest checking the non-filing spouse credit report. Sometimes the creditors will list the bad debt on the spouse, but this is easily cleared up.


Submitted by on Sun, 02/01/2009 - 08:16

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I live in one of the community property states. Here is my delimma. This is my 2nd marriage. Home in my name only. Had 80K in equity that husband convinced me to get home equity line on. His business has been cut in half, and we have gone through the money. His credit is terrible and has gotten much worse. Now 120K in credit card debt. I am considering divorce, considering he has taken everything I had and his only option is to move on to my good credit. Through research, it looks like whether he files bankruptcy or not, I will still be responsible for half of his debts. I am totally screwed.


Submitted by on Mon, 02/02/2009 - 15:59

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Have a good day! im from Florida ,my husband is filing bankruptcy we dont have joint debt the house is in hes own name, am i liable? if i have money in my savings my own account can they collect my money? im worried pls. help.


Submitted by on Mon, 02/09/2009 - 06:21

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all credit cards, mortgage are in my name from before we married can i file bankrutcy without affecting my husband


Submitted by on Wed, 02/18/2009 - 11:25

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it seems to me that you have considered settlement and are not ok with it (even though i feel that may be your best route and even if you do get sued, it can still be settled) but it should not effect your husbands credit at all. as long as you are making your house payments current and everything in his name current. the only pit fall to this is if you decide later that you need a loan and the two of you are both needed on a new account you may get rejected for that loan because of your bk.

i would consider settlement a little longer. you can do this on your own, or through a company wich ever you choose is the best for you. there are a few very good companies out there but you have to weed them out there are many scammers taking advantage of this situation right now so one must be cautious as to who they are trusting with thier financials.

if you do reconsider, to avoid getting sued try to choose a program 36 months or less the longer time goes on the more likely you are to get sued. Time is what makes settlement so efficiant. you sound like you have already lost time. how long scince you stopped paying? time is key to making settlement work to the best possible scenerio.


Submitted by love_my_things on Thu, 03/19/2009 - 06:00

love_my_things

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I live in one of the community property states, our home mortgage and the credit cards are only on my husband's name, we dont have joint debt, although he has a great credit score we can't pay anymore, he is filing for bankruptcy. Will this affect my credit too ? i have a good credit and some savings on the bank. Can the creditors come after me?


Submitted by on Thu, 03/26/2009 - 12:45

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my rental property was forclosed last september and have a sale date on my main house by this coming may,they're both under my name,filed bankcruptcy just to stop forclosure i know its already ruined my credit,they told me to include my husband on my bankcruptcy but i guess is not necessary coz he doesnt have any debts.is there any advice that you can tell me? need help pls!


Submitted by on Mon, 04/20/2009 - 22:23

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In our relationship I am the one who is interested in filing BK - hubby works for a financial firm and is afraid he'd lose his job if he did it - I have enough debts in my name alone to file - BUT Citibank, a card that he and I each have our own acct with, has cut his limit and started making "just checking" calls to him because I am defaulting on them. His name is not on my acct - they've just figured out our relationship. He's also seeing dings on his credit report for other cards that he and I have separate accts with. Does this make sense? Can't he get those removed? Also, Discover calls him at work DAILY on MY account - because they have his contact info from his own acct.


Submitted by on Tue, 04/21/2009 - 14:29

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When I married my husband I owned my home and had established excellent credit for myself. My husband filed BK right before we got married. I had just paying off all my cc's so that we could have a true fresh start. I put him on all my cc to help get him restablished (bad Move). Within six months his credit had completey rebounded to a beacon almost as high as mine. Once our 1st child was born I became a stay at home mom. I had no idea my husband was raising my cc limits to astronomical amounts and he handled the bills. So one day I started investigating and learned that because I put him as a co whatever he had the right to use my accounts request increases BUT now that he can't pay the bills HE is not responsible for payment because I am the primary account holder. I am currently roughly 50k in debt with cc alone and a few minor hospital bills. He sold My house and we bought a larger one to start our family. I am not on the mortgage, nor on our auto loan. I finally sope with an attorney and was told that because of my husbands income I may not be eligible to file for BK! So someone pls give me any advice you can. Because the way I see it I am litterally screwed. I am trying to go back to school to change occupations plus find a job to try to help myself. So anything anyone knows would be greatly apprecitated. Then maybe you can me the name of a kick butt divorce attorney


Submitted by on Fri, 04/24/2009 - 06:01

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I live in a community property state, my husband and I are suffocated with all of our debts. We live check by check and are forced to get direct advances every check to make ends meet. We are considering to file Bk, however not too sure yet of what chapter. Dispite all of the high limits my husband has managed to maintain a fair credit, however in the past months its become more difficult to catch up and avoid being late on some payments. Can my husband file on his own? My credit is not all that great, before i met him I had some hicups and i have been working on it sense. i do not want to be included on the BK, we are hoping that at least one of us can try to save our credit. Also will i be able to purchase a home, after he files? Will this affect my credit even more? Help i'm desperate!


Submitted by on Thu, 05/21/2009 - 11:53

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I really think that you need to get competent legal advice for your situation from an attorney in your area, since he or she will know the laws that pertain. I personally was very hesitant to make a bankruptcy decision based on the info I got off the internet. When I had the appointment with two different attorneys, and they both gave similiar advice, I felt more comfortable with the process and my responsibilities and obligations. It was much too important a decision to make based on information that may not have been relevant to us.


Submitted by southernapostolic on Sat, 05/23/2009 - 08:39

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iam not sure what this means its from a credit card company lost my job and now working at a different job but incomes is way less cant afford all my credit card debts


Submitted by on Wed, 06/24/2009 - 21:59

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will my unsecured credit debt in my name only effect my husband's credit if i file bankruptcy or choose a debt settlement?


Submitted by on Fri, 06/26/2009 - 12:58

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I am in a relationship with a woman who is considering bankruptcy.We are not married, we bought a house together, I am primary on the mortgage. And she is considering bankruptcy. How will this affect me? I have great credit.


Submitted by on Wed, 07/29/2009 - 11:07

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I have been divorced for two years now but we didnt settle financially yet. I have been paying so much legal fees that my credit card debt is 60,000 now plus I owe my lawyer about 20K. The divorce was settled without any financial settlement (still working on it). we have a house in both of our names. My ex-spouse filled backrupsy now...can I still my share from the house?


Submitted by on Thu, 07/30/2009 - 13:44

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DO I QUALIFY FOR CH. 7? INFO PLEASE!!

The Lowdown: I'm Married & unemployed, but my two major debts I'm filing over are in MY name only(and were incurred BEFORE marrying). I do NOT want to associate him with my Ch 7, he filed his OWN recently. I havent worked in about 2 years- and even when I DID it was just part time and only for about 1 1/2 yrs. SO I am basically a housewife.

(2) Need to Bankrupt (CH. 7) because of car repo and credit card
(3) I'm UNEMPLOYED
(4) NO assets, no mortgage (we rent), NOTHING in my name
(5) I live in TN. Total debts 'could' be just under $10,000 since evil car loan people have sent statements LOWERING the actual debt that I originally owed at time of Repo. They did this so that I hopefully wouldnt meet the legal Ch 7 amount limit for filing Bankruptcy!

And the CREDIT card co. found it somehow necessary to ADD an additional couple of THOUSAND dollars to my mere $1100, 3-yr late card balance(that they had 'said' was charged-off!) Somehow I was thinking that any interest/late fees would just STOP accruing at that point! Last week I got 'served' for the first time in my LIFE, and they are taking me to COURT in two months. Which is why I need to file. Because I have absolutely ZERO ways to pay any of these debts. This is why I let the car go back. Thankfully those are the only two debts I had (except maybe a few stray dr. bills). And except for traffic tickets and a contested divorce, I have never before been in a court before.

And I am worried that I may not meet the minimum Ch. 7 filing amount because of that car loan co. fudging the actual amount that THEY told me I'd owe after Repo! Is the amount they are saying I owe after they sold my car the amount I would include in the Ch. 7 filing? Or can my lawyer increase amount to cover possibilities of car loan co. coming back on me years down the road demanding the 'REST'? .... ANYBODY?


Submitted by on Thu, 12/17/2009 - 22:59

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I was reading through the posts here, and I may have a few helpful answers.

1) If you live in a community property state (such as Florida), are married, and are in debt, then both spouses are required to file for bankruptcy - EVEN if you are separated. You have to see a credit and debt counseling agency (like Provost or debthelper.com) together or separately, and after you talk with them to confirm that you qualify and should be filing for bankruptcy, they will ask you want to set up a meeting with one of their certified counselors (always check to make sure that they are certified). This will cost you around $75's, but it is a necessary step in order to file for bankruptcy.

2) Chapter 13 bankruptcy can protect your property from creditors while Chapter 7 does not. However, always read the fine print, because some of your assets can still be sold off. If you and your attorney are not 100% open with the value of your property and what you plan to do with it (for instance, if you decide to sell your house), then problems can occur between you and the debt court, and you can lose your property.

3) In some states, filing for bankruptcy will not affect your spouse, but in many cases this is not true. If you contact a credit counseling agency, they are required to answer that question for you. Also, there is most likely a list somewhere on this site that will tell you.

4) I've recently become a fan of two blogs that deal with these sorts of questions. They aren't always the best source, but they've recently improved. They also have links to a bunch of other blogs and websites that you can look information up on for yourself. They are http://bkhelper.blogspot.com/ and http://www.debthelperblog.com/.

In any case, I hope that this helps you out!


Submitted by Steven Hobbes on Thu, 12/31/2009 - 09:13

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I have filed for bankrtupcy before, but it was in TN, so it depends on your state. But I was able to file for Ch 7 without my husband and I didn't lose anything I owed. I kept my paid for car even. All my debts were wiped out. I've started rebuilding my credit now and hope to qualify for a home loan in the next few years. I only wish i would have done it sooner.


Submitted by on Fri, 01/15/2010 - 13:06

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Quote:

Originally Posted by Anonymous
One if my wife credit care cued her for the mount of $10,000 and we have just received letter ffom the court, if she will not responce witin 20 days. now can she still file bankcrupdcy?

thna's


Yes, she can file bankruptcy even if she gets a judgement in her name. But isn't it a better option for you to respond to the summons on time to avoid getting a judgement. Just speaking my mind.


Submitted by SC on Sun, 02/14/2010 - 23:32

SC

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If you choose to file for bankruptcy separate from your husband, your husband will most likely not be affected. As the credit cards are in your name, only you are responsible for the debt. The extent that your husband will be involved is merely to provide information regarding his income (assuming that your husband is bringing income into the household), and other identifying information regarding the household???s debts and expenses.


Submitted by on Fri, 02/19/2010 - 14:01

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I tried the debt settlement route and was sued by american express. When you're sued, you have to file response which is alot of money, then the creditor might work with your debt settlement group but nothing that I could afford, something like coming up with 60% of amount owed to creditor! It really is a gamble going that route. Maybe you will not be sued, but if you are be prepared, because you cannot get back the fees you paid for the debt settlement company whether they did anything for you or not. My suggestion is to get free consultation from a lawyer or paralegal.


Submitted by on Fri, 11/05/2010 - 19:48

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I live in Kansas and I am Filing Bankruptcy due to debt from a previous marriage. I am remarried and Filing Separately from my current Husband. My question is, If my current husband has a bank account, will the trustee need to know about it? Its His account and my name isn't on it.


Submitted by on Tue, 01/29/2013 - 07:15

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