Legal Question in Bankruptcy in Texas

Re: married spouse files bankruptcy

When one spouse files bankruptcy, all assets the spouse owned prior to marriage, and community property obtained after marriage, become part of a bankruptcy estate. Property of that estate, which can not be protected by an exemption (a state or federal law which entitles bankruptcy debtors to keep certain types of property), has to either be turned over to the bankruptcy trustee, or the debtor is required to pay an amount equilvalent to the nonexempt property towards debts. To answer your question, there must be a review of the value and types of property your wife owns, and also a determination of how much of your pre-marriage assets have become community property. Its possible there is nominal equity in both homes, which would maximize the likelihood that all property you both own is exempt, and not subject to the bankrutpcy estate.

Your credit will be affected by her filing if you have joint debts, such as you have cosigned on debts of hers. If you have no joint debts, its possible your credit wont be directly affected.