Expert: Terry Leeders - 12/12/2007

Question
My wife and I are considering bankruptcy for her, and her only.  I filed 4 years ago and received a discharge shortly after we were married.  All of the creditors she owes, are from before we were married, in her maiden name, say for maybe 1 or 2 creditors.  My questions are: If she files, will my income be considered?  If so, will they not let her file because I make too much $$?  I am not on the credit cards she received while we were married, as an acct. holder, or as a user, but if she lists them on the bankruptcy, will they come after me for the $$?  My wife is a stay-at-home mom, with no income, except for a part-time job that pays here on average $200 a month.  Basically, we are looking to have all of her debt erased, because we cannot possibly make the payments, and we do not want them to come after me.  We own our home, and it is in my name and my name only, not her's.  We have 1 car loan that is joint, that we DO NOT want on the bankruptcy.  Any help you can provide is greatly appreciated.

Answer
The court factors in all household income when reviewing the case.  Your income will be included in the means test budget calculation.  Each state has it's own budget/income thresholds, and also as different rules as to if a non filing spouse is responsible.  She can reaffirm the car note, as it must be listed, but she can indicate that you will continue making payments to keep it.  I suggest you meet with a local bankruptcy attorney to advise you on the budget test and if you would be held responsible for any debt.  I'd be happy to give you a free consultation if you live in Illinois. Thanks.