February 23, 2010
Are both spouses required to file for bankruptcy?
Lana asked:
As a result of a bad business venture, my husband's credit is tarnished and he has about $25,000 in unsecured debt. However, all his debts are personal and my credit is fine. Am I required to file with him?
As a result of a bad business venture, my husband's credit is tarnished and he has about $25,000 in unsecured debt. However, all his debts are personal and my credit is fine. Am I required to file with him?
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Comments on Are both spouses required to file for bankruptcy?
Yes, both of you will have bad credit for 7-10yrs.
If all the debts are in his name only, you do not have to file bankruptcy. This happened to me when I first got married. My husband had co-signed a loan with his daughter and she ended up defaulting, so since we didn't have the funds to make her payments, they both filed bankruptcy. That was 20 years ago and now they both have fantastic credit scores. So, beware of putting children or even brand new spouses on your bank accounts or co-signing loans.
No, you are not. When I filed bankruptcy 10 years ago, my husband did not.
No, married, filing individually is a pretty common type of case.
Make sure you're not cosigned on anything he wants to be rid of.
Your income will be used in the means test.
The trustee can look into liquidation of his half of co-owened assets if they're large enough.
Sometimes they'll even look into equitable interest in an asset titled individually in your name. For example if the two of you used joint income to make all payments on a home titled just in your name, and now it is paid off, it can be argued to be half his.
He'll be scruitinizing transfers into your name over the last two years to look for preferential payments and hidden assets.