Expert: Terry Leeders - 2/18/2008

Question
I am researching my financial options. i am married and my husband and i file taxes seperatley and do not own any property jointly so I want to know if i file bankruptcy on my debts how will this effect my husband? The bulk of my debt is student loans approx 70K and 30K in credit card debt. 6 years ago I went to an expensive private law school and did not passes my classes but i still have to pay for attending. when i failed in law school i got a secretary job and I have made on time payments on my students loans and credit cards for the past 6 years and just last month i stopped paying my credit card's min payment because i missed the on time min payment and therefore my low apr rate went up to the teens and thus the min payment increased too.  i recently had my first baby and i do not have a job. i am now a stay at home mom and thus cannot keep making payments because my savings is running out and my credit card has maxed so i can no long take out cash from my credit line in order to pay my credit cards min. payment. my husband puts a roof over my head and food on my plate, he has been taking care of me since we got married a year and half ago. i do not contribute to any of the current expenses and my husband doesnt feel it is fair to him to payoff my debt from before he and i met especially since it is adding up to almost over 100K. please help me explore my options.

Answer
First off, Student loans are non-dischargeable in bankruptcy.  Cosigned debts will still be your husband's responsibility as well after the case if over.  If any debts are for medical bills for the family, he may be held responsible under the family medical act.  Depending on your state, and depending on when your debts were incurred, your husband could be held responsible if you live in a community property state.   Your husband's income will also be included in the means test budget calculation you will be required to submit with your filing.  Therefore, you should speak with a local bankruptcy attorney to properly advise you on the correct chapter to file under, and for any responsibility your husband may have for these debts.  I practice in Illinois, so if you live here, I'd be happy to give you a free consultation about your bankruptcy options available to you to help you get out of debt.