Can a spouse file for bankruptcy while the other does not? For instance, husband’s gross income is $3,000 monthly. Wife’s income is $8,000 monthly. Husband has $100,000 of credit card debt. Wife has $50,000 of credit card debt. Husband wants to file bankruptcy, either a Chapter 7 to discharge all of his $100,000 of credit card debt, or a Chapter 13 where he proposes to pay $200 a month or 18% of his credit card debt. Wife does not want to file any bankruptcy. Can husband file a Chapter 7 or Chapter 13 petition by himself? YES, he can, assuming he is otherwise eligible for bankruptcy relief. Is wife’s credit score affected by husband’s bankruptcy? NO, because wife did not file for bankruptcy and her social security number is not included in husband’s bankruptcy petition.

Having said the foregoing, the analysis of husband’s qualification for bankruptcy becomes complicated because even though wife will not be filing bankruptcy together with husband, her income is part of the factors that come into play in the legal analysis of husband’s bankruptcy eligibility. Lawyers may look at the same case differently depending on how they analyze the case. One lawyer may assess the case as a Chapter 7, while another lawyer may assess the case as a Chapter 7, using exactly the same set of facts. The truth is that even though spouses are married to each other, one spouse can be flat broke, while the other spouse is not. In fact, I have represented several couples where one spouse has filed a Chapter 7, while the other spouse has filed a Chapter 13 concurrently! Unfortunately, even if only one spouse is plagued by a large amount of credit card debt, the debt load becomes a burden for the entire household. Thus, it makes legal sense for the bankrupt spouse to file his or her own bankruptcy.

【下一頁】