Texas is a community property state. I am considering filing bankruptcy, but my wife who owes no debts is worried that her credit will also be ruined if we are forced to file jointly. Are there any protections for her, or does the community property laws forbid me from filing alone? Please help.
2 Answers from Attorneys
Does the Community Property Laws Forbid Me from Filing Alone?
You always have the option to file alone, although it may not be wise. The decision to file a joint or single case is complicated (as are most bankruptcy issues).
Although you can always file alone, you must disclose information concerning your community property assets, and your joint income. Your joint income will be considered in determining whether the filing is abusive, regardless of whether your spouse joins in the filing.
William D. Weber
WEBER LAW FIRM
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You can file alone if you'd like. The community property laws do not require that she file also. Lots of our cases are for just one spouse instead of both.
However, she should not be afraid of filing. Bankruptcy will not ruin her credit. Lots of our clients see their credit scores go up by 100 or so points in the couple of months after filing. I have a short article about it at www.214bankruptcy.com/top-myths-about-bankruptcy/ . The thumbnail explanation is that the bankruptcy flips her debt-to-credit ratio and that flip is reflected in her FICO score.
Fort Worth Bankruptcy Lawyer
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