Joint Filing Question

[Pizza]

Well folks, it's been close to a year since a BK came to mind, and though I'm thankful that I've been able to buy some time and hang on a little while longer, the time and money are about to run out soon. Haven't had a chance to post much, but I would like to thank the members of this community for this vast wealth of information.

Now here's where I'd like some opinions...

Over the past few months, I've lost my job while my wife (offic. married 1/09) found a rather decent one making $36k a year. As a result, she has managed to pay off all her credit cards, while on my end things have been continuing the downward spiral that started about two or three years ago.

Since Texas is a community property state, I understand that if I must file we have to file jointly? Naturally this complicates our situation because she finally reaped the benefits of her education and became debt-free, while everything on my side has gotten worse by the day.

Realistically, what would happen when I (or we) filed if everything that's ugly is solely in my name and she has nothing of her own to discharge? Does that destroy her credit too? Would it cause her credit card companies to cancel her cards or prevent her from getting a car loan? What should we reasonably expect out of bankruptcy?

Any help or suggestions appreciated in advance. Thank you.

[nodollarsnomo]

You don't have to file jointly in Texas. Google bankruptcy in Texas. From what I understand if the debt is in your name only she should be o.k.

[Pizza]

See, that's the problem. Some websites elude to the fact you can file solo with no problems, while others explicitly state that all debts incurred during the marriage are community property debts.

So does that mean that credit cards obtained before the marriage are not community property? Or does it mean that if I charged a luxury furniture set before marriage (I did not) but then charged a big mac and a coke after the marriage that I could discharge the former debt and not the latter?

It's very confusing. I just don't want to made a bad situation worse by letting her credit get damaged further because of my bad finances. Any other suggestions?

[Pizza]

Here's a sticky I was reading on this website:

Community Property & Your Debt

In a community property states, debt acquired during the marriage (as opposed to debt acquired prior to the marriage) is owned jointly by both spouses and is divided upon divorce, annulment or death. Joint ownership is automatically presumed by law, unless there is specific evidence that would point to a contrary conclusion for a particular debt. If you live in a community property state (listed below), both spouses are held accountable for any and all debts acquired during the marriage, even if the account was is listed exclusively in one spouse's name.

Community Property States

The community property states are found most in the West, which has largely been influenced by the Spanish legal tradition from several hundred years ago. The exceptions of this are Louisiana (which comes from a French legal tradition) and Wisconsin (which adopted community property laws much later).

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

Now, a large purchase with repayment terms such as a car or boat; that's easy to figure out since they are all secured items with joint accounts. But we don't have anything like that. Just credit card debt. We do have a car lease, but we weren't trying to default on it, it's a rather small note. In her name only she has some student loans, but they aren't dischargeable.

She really has NOTHING to be discharged, but my side really sucks.

Any other suggestions?

[nodollarsnomo]

Is any of the cc debt or the car lease in both of your names? If yes, then you would have to file jointly. If I read correctly did you marry in Jan. of this year?

[Pizza]

Is any of the cc debt or the car lease in both of your names? If yes, then you would have to file jointly. If I read correctly did you marry in Jan. of this year?

None of the CC debt is in her name. The car lease is in both. We also have a mortgage together. None of the debt is delinquient yet, but time is going to run out in the coming months and the CC debt is large. She makes enough money to pay the mortgage and car note, but not enough to keep my credit card bills paid.

Yes, our marriage certificate went through in January, stamped the 7th I believe.

[Pizza]

So are there no more thoughts on this? Perhaps it's something only an attorney can answer for sure?