I recently closed my retail business, defaulting on a commercial lease, SBA loan, and line of credit. I plan on filing chapter 7. The SBA loan was secured by my house, which I am planning on surrendering in the chapter 7.
My wife also signed as a guarantor for the loan. She did not sign for the lease, but the lease describes that "any married person who signs this Guaranty expressly agrees that recourse may be had against his or her separate property for all of his or her obligations hereunder."
My wife does not have any property, besides her 401k, can any of these agreements cause her wages to be garnished? If so, could we avoid this by divorce? We are trying to avoid her having to file bankruptcy, and we have a very low income right now.