Bankruptcy Question

Discussion in 'Credit Talk' started by TxMommy, Apr 2, 2001.

  1. TxMommy

    TxMommy Active Member

    I have a question that is going to sound vey strange (and probably make me sound very stupid!). My husband and I have been married for 6 years. We have always kept all of our finances VERY seperate (no joint checking, credit cards etc.). There is not one item purchased in both of our names (including cars). He already owned his own home when we married so I was not on that either.

    Well, long story short, he started his own company and incurred a tremendous amount of personal debt. Things aren't go as he anticipated and he is considering filing for bankruptcy. Not the business, him.

    I am in the process of getting my credit in good shape so that I can buy a new home (in my name only due to his high debt and unverifiable income). The question is, in the state of Texas, how would his filing bankruptcy effect me if we have NOTHING joint? I know we need to talk to a lawyer, but if anyone happens to have some info on the subject, please let me know. If this is going to screw up my credit, then I am not going to support it. If he can do it solo, then I will let it be his decision.

    PS - we have a great marriage, we just don't mingle our money....


    TX Mommy
  2. Bigun

    Bigun Guest

    If nothing is joint, I would see no conflict. You might check to be sure neither of you is on one anothers credit cards as an authorized user.
  3. MistyEyed

    MistyEyed Well-Known Member

    You should check your states rules. When we filed back in 96 we were required to file jointly because we were married. Our only way out would have been to get divorced first and then remarry after the BK. We decided not to worry about it and both just file, but it was a possiblity.

  4. TxMommy

    TxMommy Active Member

    Thanks Bigun and Misty for your response. I'm afraid that since Texas is a community property state that whatever he does is going to effect me also. The idea of a BK is just so frightening to me, and I know it is killing my husband. I have always had bad credit (because I was stupid and irresponsible in college) and he has always had fantastic credit. He had a 815 FICO 18 months ago. He has had his first car loan at the age of 16 and a credit card at 18 (he is now 42). He has NEVER once been late with a payment, always payed things off in full. He just really screwed up trying to finance his business himself. Anyway, thanks for the info. I know this is not an easy subject and any additional info is really appreciated. If he is going to file and it is going to effect my credit, then he is going to have to wait until we get our new house!!!

    TX Mommy

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