Are we stuck in BK?

[sjcmCA]

I am living in California, e.g., the community state.

All my unsecured debts and securend debts are on my name only. Since my wife is an immigrant she got her social security number in 2007. The mortgages were taken in 2005. The loan officer said that my wife doesn't have to sign on the docs since she doesn't have SSN.

When I file ch 7, she must join the bankruptcy even though she doesn't have any assets?

We include everything (cc, house, etc.) in the file and surrener a house except two cars.

Should my wife file ch7 with me? Are we stuck in BK?

[whipster1]

If the debt was incurred during the marriage it is a community debt. The creditors may come after her if she doesn't file, although they shouldn't unless you guys split up. Is she on any account with you or does she have her own debt since getting her SS#?

If so, you get a two-for-one joint filing BK and probably best if you both file and get a fresh start for both of you.

Good luck!

[shabam]

Good News for Responsible Spouses: You Aren’t Responsible for the Other Spouse’s Debts

One of the most enduring myths about the law is that spouses are legally responsible for each other’s debts — but it simply isn’t true, not even in a community property state. Why, then, do so many people seem to “know” this is so, when it’s just a myth?

The answer probably lies in the nature of marital property ownership in the nine community property states in the U.S.: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In these states, a creditor of either spouse may pursue property owned by the spouses, and almost all property is jointly owned by both spouses in community property states.

Regardless of the origins of the myth of joint liability for the debts of a spouse, it’s useful to know that spouses are almost never personally legally responsible the debts incurred by the other spouse. The fact that the credit card company has printed your name on the bill along with your spouse certainly doesn’t make you responsible for paying that debt; they may as well have printed President Lincoln’s name on the bill too, for all the legal effect that would have. The bank’s having mailed you a credit card to match your spouse’s for the same account doesn’t make you liable either.

What makes you legally responsible for a debt, whether you’re married or not, is that you have signed an agreement to pay the debt (unless it’s an oral agreement and someone has a recording). For credit cards, this means the question is whether you signed the account agreement or original application for the credit card. No signature means no debt. If you’re not sure you signed anything, ask the creditor for a copy of the agreement that bears your signature.

While under the common law, spouses are legally responsible for debts for ”necessaries” (items necessary for life such as food or medical care), this old doctrine is rarely invoked by creditors due to problems proving what the money or items were actually used for.

Whether you live in a community property state or not, remember that if you didn’t agree in writing to pay the debt, you almost certainly don’t owe it.

By Craig Andresen, Attorney at Law on Aug 31, 2009 in Bankruptcy Myths, Bankruptcy Practice and Procedure, Credit, Bankruptcy, and Society, Marriage and Debt
http://www.************************/...spouses-debts/

[sjcmCA]

Thankss whipster1,

We don't have any joint accounts with CC or mortgages. We only have joint accounts for checking accounts with BOA and a creidit union.

Since she got SSN in 2007, her name has been put on some credit cards as an authorized user (not a Joint Account) but her name was removed off, and she confirmed that those CC accounts as an authorized user don't show up in her credit report anymore.

Technically, she doesn't have any joint debts with me and no assets.

Is it possible that the creditors come after her even after my ch7 discharge?

===============

shabam, Thanks for the link.
I am a little bit confused though. I remember that I signed on some CCs' application but my wife never signed on it since her name once was added as an authorized user and removed off from the accounts later.

I am not still sure if she must file BK in this situation. She has two Department Store Cards on her name (individual cards of her) but she have not used for a while and the balances have been 0.

Have a wonderful day!

[2manybills]

That is correct. I recall when I got divorced from my first husband, we had a credit union loan that I never signed on. They could not enforce any judgment or collection activity against me because I was not on the loan.

But if you had a CC that you requested an additional card for your wife, that is another story. Then they can prove she used the card, etc. etc.

Your attorney will tell you how to file, but I would be willing to bet she won't be responsible for the debt.

[gwar11d2]

My wife is also an immigrant (technically most of us are We are filing jointly because of a few things #1 We have 2 accounts that are joint owned. #2 She has a little credit card debt, but the most important #3 Double exemptions. By filing jointly we get a fresh start together, etc.

[jadams]

So you aren't "legally responsible" for the debt, but most property would be jointly owned and the law allows a creditor for one spouse to go after joint property.

Maybe I read it wrong, but it seems to be pretty much a wash. Sure the other spouse isn't responsible, but they can have their property (i.e. bank accounts) seized to pay the creditor -- isn't the end result pretty much the same?