Spouse Not Filing - Would CC companies come after her?

[pcm]

I live in CA. I have $45K in CC and my wife has $15K. I'm considering filing for Chapter 7 on my own and continuing paying for her CC debt. Would my CC companies come after her even though I'm the only one in the accounts?

[Dougie011]

I live in CA. I have $45K in CC and my wife has $15K. I'm considering filing for Chapter 7 on my own and continuing paying for her CC debt. Would my CC companies come after her even though I'm the only one in the accounts?

From what I have read and understand, if you are the only name on the card you would be the one they would go after for payment. They wouldn't be able to go after your wife for a card that she didn't sign for or have access to.

If I am wrong someone PLEASE let me know.

[keepmine]

I'm of the opinion that nonfiling spouses are protected.
Maybe this thread can help,

http://www.bkforum.com/showthread.php?t=24544

[aprilmyriad]

I am curious about this too. I read somewhere that because California is a community property state, if the debts on your cc were incurred during your marriage, she is automatically liable for them even if her name isn't on the card.

[tay666]

I am curious about this too. I read somewhere that because California is a community property state, if the debts on your cc were incurred during your marriage, she is automatically liable for them even if her name isn't on the card.

That is what I was thinking as well.

[starr4law]

Because CA is a community property state, filing alone will not help your situation as they can still come after her. In WI, it is the same thing, and more and more creditors are taking advantage of this (used to be that they rarely did). Of course, you should speak to an attorney to see if there are options that are available to you.

Good luck!

[backtoschool]

From what I have read and understand, if you are the only name on the card you would be the one they would go after for payment. They wouldn't be able to go after your wife for a card that she didn't sign for or have access to.

If I am wrong someone PLEASE let me know.

California is a community property state and if the debt was incurred during the marriage, then they can go after your wife even if you file for bankruptcy and she doesn't.

[Dougie011]

California is a community property state and if the debt was incurred during the marriage, then they can go after your wife even if you file for bankruptcy and she doesn't.

I wish all of the states would have the same standards to make it less confusing. What other states are community property states?

Never mind, I googled the answer.

[JackBondLove]

I wish all of the states would have the same standards to make it less confusing.

You can blame Thomas Jefferson et al for pushing through strong state's rights in the Constitution.

[adm]

CA is a community property state. So debts incurred/benefited from during marriage are both your responsibilities. Have you consulted w/a BK atty? It would seem to me you can not exclude your wife's debts if it meets this criteria due to preferential treatment....

So I am filing alone, including a cc that only my spouse got but we also live in a CP-state.

HTH- let us know if you learn something different!

[yomann]

California is a community property state and if the debt was incurred during the marriage, then they can go after your wife even if you file for bankruptcy and she doesn't.

However; once the debt is discharged under one spouse's BK filing, there is NO debt left to go after the non-filing spouse ......... ??? Correct ?

[tay666]

However; once the debt is discharged under one spouse's BK filing, there is NO debt left to go after the non-filing spouse ......... ??? Correct ?

No.
The spouse who files is no longer responsible for the debt.
But the spouse that does not file is still on the hook.

BK does not actually wipe out debt. It just wipes out the ability of the creditor to collect or persue that debt from the people who file BK.
With no one to persue, they drop it, and then it disappears.
But if there is still someone they can go after, they will.
Like someone who might have co-signed for you.
Or, in community property states, a spouse who does not opt for the protection from the bankrupcy court.

[yomann]

No.
The spouse who files is no longer responsible for the debt.
But the spouse that does not file is still on the hook.

BK does not actually wipe out debt. It just wipes out the ability of the creditor to collect or persue that debt from the people who file BK.
With no one to persue, they drop it, and then it disappears.
But if there is still someone they can go after, they will.
Like someone who might have co-signed for you.
Or, in community property states, a spouse who does not opt for the protection from the bankrupcy court.

Thanks for the clarifications.
If the debt is with Discover, and my wife was an authorized user who never ever used her card, and the debt has been turned over to a CA, what is the practicle probabilty of the CA going after her ?
Worst case, we will have her file as well ......., but would rather not to preserve her credit rating.

[backtoschool]

Thanks for the clarifications.
If the debt is with Discover, and my wife was an authorized user who never ever used her card, and the debt has been turned over to a CA, what is the practicle probabilty of the CA going after her ?
Worst case, we will have her file as well ......., but would rather not to preserve her credit rating.

There is no way of knowing if and when they will go after her, but with her still being liable for all of your debt, your bankruptcy will not really being doing much for you.

They will still be able to get a judgment, levy your joint bank account, etc.

Unless you have a lot of individual debt that was incurred before you married that you are trying to discharge, I am not sure why in a community property state, you would not both file.

[keepmine]

I'd just suggest people in community property states speak with a few lawyers about this topic.
More than a few attorneys disagree with the majority of the conclusions posted here.

http://www.moranlaw.net/alone.htm

Community property discharge

When one spouse files bankruptcy in a community property state, the marital community enjoys the protection of the filing spouse's bankruptcy discharge. Section 524 of the Bankruptcy Code provides that any community property that the filing spouse and the non filer acquire after the bankrutpcy is protected from creditors of the non filer who held a claim against the non filing spouse as of the date of the filing.

A creditor with a claim against the non filing spouse can only collect its debt from the separate property of the non filing spouse. In California, that separate property is comprised of assets acquired before marriage; assets acquired by gift during marriage; or assets acquired by inheritance.

Creditors, despite the fact that the community property discharge has existed since at least the passage of the Bankruptcy Code in 1978, have a hard time believing that someone in a community property state gets the benefit of their spouse's bankruptcy discharge, but that's the law.

Here is 524 of the bk code.

http://doney.net/bkcode/11usc0524.htm

3) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect or recover from, or offset against, property of the debtor of the kind specified in section 541(a)(2) of this title that is acquired after the commencement of the case, on account of any allowable community claim, except a community claim that is excepted from discharge under section 523, 1228(a)(1), or 1328(a)(1), or that would be so excepted, determined in accordance with the provisions of sections 523(c) and 523(d) of this title, in a case concerning the debtor's spouse commenced on the date of the filing of the petition in the case concerning the debtor, whether or not discharge of the debt based on such community claim is waived.