Keeping Wife Outta This

[HadEnuff]

I'll be filing CH. 7 this month and want to keep my wife out of it. All the accounts (cc) I'll be filing on are in my name, as in I'm the account holder. My wife is an authorized user on two. Will they (the creditors or the courts) try to come after her? She did not sign the credit applications nor was her SSN ever used anywere on the credit apps. We are in Montana if it makes any difference. Reason for filing is I've been unemployed for nearly two years with no suitable job prospects in sight. We've used up all of our resources and have sold of most of our assets to keep afloat to this point but our ship is starting to run aground. Credit ins. has kept most of the creditors satisfied but that will expire in a couple months.

Thanks all.

[HHM]

Well, your answer partially depends on whether Montana is a community property state and how long you have been married.

Legally, you can file BK without your wife being a debtor, but the mere fact that nothing is in her name is largely irrelevent. The BK courts generally take the view that the non-filing spouse benefits from the use of the credit and assets of the marital estate.

If your's would be a no asset or small asset case, then your wife need not file as a codebtor. It will depend on what assets you have and exemption law of Montana in determining whether you wife will need file with you.

[HadEnuff]

Montana is not a community property state. We've been married for 21 years. She is employed and has her own credit cards and is current on them. I don't want to ruin her credit if we can keep her out of the whole mess. I'm pretty sure this will be a no asset or small asset case. I have a meeting set up with an attorney on the 23rd. for consultation. I really just wish I could be working at a decent job and paying my bills!

[HHM]

Well, the attorney can probably answer your question.

If she does not file, then her credit won't be affected;

My concern is the length of marriage. No matter whether you live in a Community Property state or not, married couples are generally veiwed as a single entity, so when one enters a contract, the other is bound and vice-versa. Thus, its conceivable, but unlikely, that your credit card companies could go after your wife for payment.

However, your local attorney can give you a better perspective of how things work in Montana.