Chapter 7 Nevada-Married only one Spouse filing

[sinking1978]

Please forgive me if this question has been asked.

I am contemplating filing bankruptcy in Nevada. I had an initial consult with bankruptcy lawyer. She said I could file alone against my debts only and my husband did not have to file and he would not be affected as we do not have any loans or credit cards together/or authorized user.

So I gathered the paperwork/documents she requested and met with her again.

At this meeting she told me no your husband will be affected.

I'm so confused.

I realize that Nevada is a community property state. So I understand he is still "technically" responsible for helping me pay me credit cards.

I understand that his income will be accounted for along with mine, we are ok to file chapter 7 even with his income because of the size of our family.


What I don't understand is why his creditors would need to know I"m filing bankruptcy?

He is and has been paying all his credit cards, his cards are either paid off or low balances.

HE IS NOT FILING. We have NO cards or loans together.

She said his credit card companies will be notified and they may close his accounts?

WHY I don't understand.

I am holding off on filing bankruptcy now because what she said from first appointment to second appointment is different.

[nohoneymoney]

Go get a second opinion from other lawyers. Consultations are usually free.

[sinking1978]

I think I might but wanted to research a little.

Also I'm not having to pay this attorney. The major reason behind considering bankruptcy is that our daughter fought stage 4 cancer and we have 20,000 in medical debt on top of my credit card debt and his.

A local cancer foudnation is paying our fees with this attorney.

[justbroke]

Yes, certainly get a second opinion only because community property laws and bankruptcy are a.) interesting, and b.) only exists in 5 States. Maybe despritfreya can describe how they work in Arizona.

If you don't have joint debt then I personally don't know why you have to notify the non-filing spouse's creditors. I also probably shouldn't comment as I am not in a community property State and have no experience with the impact of the hypothetical discharge of the "community estate."

I would certainly shop around and obtain several more free consults on the matter.

[sinking1978]

Yes it's confusing. Why would his credit cards need to know.

I do realize the following:

His debts are my debts since we are community property...so his debts must be listed as an expense.

I understand since we are married he shares responsibility in paying my debt, hence listing his income.


I just don't understand why his creditors would be contacted and his accounts closed.

It just left so much uncertainty .

Would they just close his accounts because they would see risk?

I would imagine listing bankruptcy on his credit would be illegal since he didn't file against any of his debts.

[despritfreya]

Unfortunately, due to community property laws, your debt is your husband's debt and his debt is your debt. There are a few exceptions but, in general you MUST list all debt run up from the moment you married to the present REGARDLESS of who signed on the dotted line. As a result, he will be affected by you filing bk. Please review the following thread:

http://www.bkforum.com/forum/before-the-discharge/chapter-13/1017076-filing-chapter-13-separately-learn-from-my-bitter-and-brutal-mistake

Des

[bcohen]

So far, I have not heard any reason why your husband shouldn't file jointly with you. He would simply need to disclose the bankruptcy to his employer, and having a daughter with cancer is certainly a good reason for bankruptcy, and one which would garner much sympathy. All of his debts would be discharged along with yours, and you can then use your income to pay for living expenses going forward.

[LadyInTheRed]

He would simply need to disclose the bankruptcy to his employer.

There is no need to inform his employer of his BK. There is no guaranty the employer won't find out, but there is a good chance they won't.

[bcohen]

There is no need to inform his employer of his BK. There is no guaranty the employer won't find out, but there is a good chance they won't.

I'm sorry, I read the thread which despritfreya linked to, and thought that the reason OP did not want her husband to file was because he needed a security clearance for his job. That is the only reason why I mentioned notifying the employer. I re-read this thread, and do not see any mention of security clearance, so in that case, no need to notify the employer.

[sinking1978]

Thank you. I will read the forum you linked.

There really isn't any reason he isn't filing with me other than trying to avoid destroying both of our credit histories.

His credit cards are nearly paid off.

I do realize we are each equally responsible for one another's debt.

Let me ask a different question.

So let's say we proceed with us both filing bankruptcy.

My husband took a title loan out on my vehicle a year ago. The vehicle was paid off but no is being used to secure a personal loan.

If we were to file bankruptcy would the Personal Loan lender be able to take my car?

The loan is 10,000 but the value of the vehicle is only 6,000.

Thank you again.

[bcohen]

So let's say we proceed with us both filing bankruptcy.

My husband took a title loan out on my vehicle a year ago. The vehicle was paid off but no is being used to secure a personal loan.

If we were to file bankruptcy would the Personal Loan lender be able to take my car?

The loan is 10,000 but the value of the vehicle is only 6,000.

Thank you again.

Assuming that the personal loan lender has a properly recorded lien against the title, then yes, they could take the car if you refuse to pay off the loan as agreed. Chapter 7 bankruptcy would discharge both of you from personal liability for the loan, but the lender could still execute against the title (though not while the automatic stay is in effect). In any case, if the car is only worth $6000, I would not agree to repay $10000+ in debt in order to keep it. It's not as if you would never be able to buy another car again.

Once you are certain that you will be filing, you should quit paying all unsecured debts, as well as any secured debts for things you won't be keeping. This personal loan would be one of the debts that you'd stop paying.