Expert: Mark J. Markus- California Bankruptcy Attorney - 8/11/2009

Question
I am married and we live in Texas, a community property state. I am knee-deep in debt like many in this dismal economy and am considering filing for bankruptcy.

My wife owes no unsecured debts and she is worried that the community property laws will ruin her good credit as well if I file. We are wanting to keep a lease vehicle and if we are forced to file jointly, I don't know how we can keep it if both of our credit reports are destroyed. Please help, I'm desparate for advice and have gotten so many mixed answers I am stressed out.

Thanks, Jim.

Answer
Hi Jim.  I'm sorry you haven't received a solid answer, and I'm afraid I'm not going to improve your mood much.  The reason is that there simply isn't a definite answer.   The best one I can give you is that if you file bankruptcy separately (your wife does not file), then it might affect her credit somewhat, but it will not be shown as a bankruptcy on her credit report.  Part of the problem with this is that nobody knows what criteria credit reporting agencies use to make their determinations.   Clearly her credit report will not be affected as much (if at all) as if she filed her own bankruptcy case, but there's always a possibility, especially in joint credit situations, that her score may be reduced somewhat.  It also may not affect her credit at all, but it would be wrong to point out that there's no chance of it being impacted.

http://www.bklaw.com/