AZ - estranged H's massive debt

[ChandAZ]

Hello all. I've done a little searching here and a lot online and just wondered if anyone had any information\experience to share until I can consult a professional.

Scenario: My H moved out 2/07, we do not yet have a legal separation nor divorce and have been married for 9 years. We live in Arizona (community property state). I maintain our home, its mortgage and a 2nd mortgage (which has gone to pay off some of his debt twice).

He has recently stated that he needs to file bankruptcy. He changed jobs last year so I do not know his exact income but if it is similar to what it was it is about 1/3 of mine and from what he recounts his CC debt as it is about 3 times my CC debt. Had I known he was going to get into that much debt I would have been a little smarter and filed for divorce long ago.

The person he consulted with told him that I have to file as well so that his creditors do not come after me. Now looking at the community property information that seems pretty accurate that his creditors can come after me for debt I never signed for because of the 'community'. I really really do not want to file bankruptcy as I am fortunate enough to be able to work at paying off the debts that I incurred and do not want a BK on my record and have to start all over. Since he decided to skip out I have been able to pay off more of my debt than ever. I mean if we try and do a joint file would it even look like someone who needs a bankruptcy when the two incomes and debts are added together??

What I have been wracking my brains about until I have an opportunity to consult a professional is do I have any way at all to protect myself from his creditors coming after me? We aren't divorced yet so if we stay legally married am I protected in the 'community' even if I don't file? If we divorce they can still come after me since we were legally married when he wracked up all that debt right? Can I transmute my assets in to separate assets or can they take those too for his debt?

I have no idea if he wants to file Chapter 7 or Chapter 13. Together I don't think we would pass the means test for 7 but alone he might. If he did file 13 then would that give me until his payment period is done before his creditor can come after me? Needless to say (yet I'll say it anyways haha) I am seething mad right now. I currently only drive a motor scooter but had wanted to buy a car soon and when the housing market was better maybe ever get rid of our house and move. If I have to BK then that idea may be shot and I have to spend all that time on paperwork to file for something that I personally don't need (which makes me feel like abusing the system for some reason).

There was a thread I saw of someone married who filed individually but no indication if the creditors ever did go after the spouse.

[ChandAZ]

Sorry for the double post, but I am wondering if this should be moved to 'General Bankruptcy' or not. I mainly posted wondering about creditors coming after non-filing spouses in CP states. But now I am all worked up with worry about what his spending since he left is going to do to me and why I didn't just file when he left! Darn that hindsight!

Also, from reading here (gah I can't wait to consult a professional on this and stop driving myself insane) it looks like if I do file with the H then not only can that trash my future purchase plans but there goes my 14 year credit history. Poof byebye thanks for playing and working the past year and a half to pay of your debt..doesn't matter...it was for nothing.

I also wonder too that if I file with him on a 13 then with my income the repayment would probably still be outside of his means so what is the point as I'd be the one straddled with paying on the plan for his debt. I mean with the 'community' and all it isn't like they would divvy up who made what debt or let me be on the 13 yet not have my credit ruined.

I even offered to have him transfer some of his debt to my cards in hopes that would mean he didn't have to file and he said he didn't want me paying his bills so my doing a 13 with him pretty much sounds like I'd be paying his bills. Does it sound like I am understanding that right? If we divorce first I have no idea if that changes anything with community property in play. Plus it goes back to if I file with him then there goes my good credit history.

If he files a 13 on his own it would be 3-5 years (depending on the plan) before his creditors could chose to seek me out for his bad debt right? If he does a 7 then if they are going to come after me then they will do it pretty quick. The only light I saw was that if it wold be a few years before they came after me I'd have time to pay off my debt and save up some to deal with them if any did look to me to pay (plus he would have at least paid them a little bit).

Without having seen anyone yet it almost sounds like my best bet may be to do the divorce (that would mean my income is off his means test right? or does it matter with CP? we've been separated for 1.5 years but not legally), let him file a 13 on his own, then prepare myself for if any creditors of his come after me after his plan is done. I mean why potentially go into a 100% plan for his 64k in CC debt (plus my 18k on CC) and pay the bulk of it since he makes a lot less when the creditors may or may not come after me after he's paid some of it?

[Flamingo]

Protect yourself. You need to talk to a divorce lawyer in your state. Until you actually see one and get the information you need, you will come up with all sorts of scenarios and wild guessing. You will then know what you have to do and don't have to do as to your situation. Best of luck to you!

[No Gravy]

I can't offer any advice, but I do want to wish you luck getting through this, and hope you are able to protect yourself, and get a *good* attorney.

[JRScott]

Divorcing now will not absolve your responsibility for the debt. Since you were married when the debt was accumulated then you'd still be responsible. At least that's how I read the divorce laws for Arizona.

You probably need to talk to a bk attorney and a divorce attorney to get things figured out. It is hard to know what chapter you or him would be in without more data.