Joint Credit Card Debt and Bankruptcy

When one half of a married couple decides to file for credit card debt bankruptcy, it's a reasonable question to ask if filing will affect the other. The answer is no, generally it will not. In the case where both spouses are co-signers on a card, there will be some difficulty as the spouse not filing will be considered responsible for the debt. If one spouse owns the account and has given a card to the other as an authorized signer, the owner should not be affected.

How the Petition Handles A Married but Single Filer

After the means test, the debtor will fill out the voluntary petition. Start out by entering only the name and address of the debtor that is filing. Do not enter the spouse's information. Check the box that says Individual. When reaching the Exhibit D question, check the first box that states Exhibit D is attached. The lower box is for joint filers and does not need to be checked. Sign the petition and move on to the rest of the forms and schedules.

A petitioner will have to use data income and expenditures for both spouses, even though one is not filing. This will not affect the spouse at all. Instead it's used to create a baseline for monthly expenditures. In the case the filing spouse has a low income and the others is higher, it shows the trustee that the filer is not trying to abuse bankruptcy.

Post Discharge

This is the point where the spouse that files starts to rebuild their credit. The spouse that did not file should not be hounded by the others creditors and should not see their credit affected. One spouse can assist the other by giving them a card as an authorized signer to help rebuild the bankrupt spouse's credit.

Getting Legal Advice

It's best for a couple to consult a lawyer before filing. An experienced bankruptcy lawyer will know best how bankruptcy affects the non-filing spouse as well as how to protect them. It's also a good idea to have a consultation to understand all of the implications that go with filing a petition