Can My Husband REALLY File on His Own?

[Cassie]

Hello,

I just found out about the load of credit card debt my husband has run up in his name. He didn't squander it, but he used credit cards instead of getting out and getting a job (he is still unemployed) and now we are in deeper than we can hope to climb out. Two of the credit cards are in my name the others are in his name, although I might also be on at least some of the cards.

We are not behind on anything at the moment, but I am terrified that I will lose my home. I work at a good job and thought we were making it (just barely) on my salary. Surprise! We have several special needs dogs who are too handicapped to be adoptable by anyone and I don't want to lose "my children" -- that would kill me.

This has all come down since Thursday evening and I'm still numb and reeling with the shock. I don't know what to do, only that I must do something. I don't really want a divorce (although I may kill him) but I read that he can file independently from me. I don't know how this can be. How can they not attach what I make and make me pay many many thousands of dollars. I'll be dead before it is all paid off.

My instinct is to try to find lower rates and transfer my balances from the cards in my name. Other than that I don't know what I can do. Any suggestions or information would be very nice right now.

Thanks,
Cassie

[keepmine]

You are allowed to file as ,"married filing separately." No mystery, many have gone this route.
If you live in a community property state, it may be more complicated.
Is the house in your name only?

[Cassie]

The house is in both our names. We only bought it 2.5 years ago when he was making $40,000 a year.

He's been looking at the credit cards and I have cards issued to me for most of them. I don't know if that means I'm responsible for them or not. We don't live in a community property state.

I'm at the starting point where I really don't know what questions to ask because I don't know enough to formulate a question. I'm numb and am just having a hard time making myself understand all this.

Thanks for listening.
Cassie

[lrprn]

Cassie, make appointments as soon as possible for free consultations with 3-4 bankruptcy lawyers in your area. You could use some legal advice to help sort out some of these issues.

If you think one of you may file without the other, then since both of you are on the house deed and mortgage, that will put your house at risk. Also start investigating the credit cards. You need to find out who is the card owner and whether you or hubby are co-signers or authorized users on each one.

Hang in there, make those appointments, and keep asking questions. We'll help you as much as we can.

[CindyLou]

Hi Cassie, and welcome! The only problem that I do see is that if any of the cards do have your name on them as a joint account then those cards you would be responsible for. Also, what state do you live in? That could possibly make difference? No matter what, thought, there is always a solution. Believe me we have all either been there are either are still there. You have come to the right place to figure it out.

[JRScott]

If the credit cards are in your name it won't do any good for him to file separately.

He could file on those debts that are just in his name separately without you having to file. However if the house is in both your names, as well as, the cars. That could complicate issues.

I would suggest going as a couple to a few free bankruptcy consultations with local bk attorneys. They can give you the best idea for your area as to what the best option for you to do is.

I understand the desire to move these debts to a lower interest card/loan. However there is a danger in doing that. It is true it might work for a few months. However there is the thing called the universal default clause that comes with pretty much every new credit card and most older ones are updated to include it. Basically what it says is that they can bump up your interest rate if they pull your credit report and don't like what they see. Typically the bump is to a 23 to 30% interest rate which would kill anyone. Usually once the first one bumps you can be pretty sure within 90 days all of them will. Typical reasons they use is any late payment (even to a different creditor), having to much debt in relation to your limits, etc.

Good Luck

[frankies_mom]

Hi Cassie.
I don't know what state you are in but I am in Connecticut and filed without my husband. All of the cards were in my name except one. He was an authorized user on a couple of mine so I called and took him off the cards. We also have a house deed with both our names. My attorney said there would be no problem as long as we keep paying the mortgage. I am 15 days away from discharge and so far so good - no problems with our house. I would talk to a few attorneys and see what they say (once you have your cards straightened out on who belongs with what). Depending on your state laws, the house may not be an issue. Good luck!

[attila]

Hi Cassie.
I don't know what state you are in but I am in Connecticut and filed without my husband. All of the cards were in my name except one. He was an authorized user on a couple of mine so I called and took him off the cards. We also have a house deed with both our names. My attorney said there would be no problem as long as we keep paying the mortgage. I am 15 days away from discharge and so far so good - no problems with our house. I would talk to a few attorneys and see what they say (once you have your cards straightened out on who belongs with what). Depending on your state laws, the house may not be an issue. Good luck!

The house may not be in danger for Cassie depending on the equity that she and her hubby have in the house. In my case, we have more equity in the house then the exemption would cover. Definately she should get consultation with BK attorney's to get the lowdown. She could go the state bar website in her state and see if they have certified attorney referral services in her area to get referrals from. My case ended up in a shambles because I used someone a friend recommended and was naive about the process and did not do my homework.