If my husband files Chapter 7 will it effect me or our home?

Question

We live in Michigan and this is the LAST thing he's ever wanted to do but credit card debt is out of control (he lost his job last year and didn't get unemployment, wage compensation, etc for over 5 months) so now these credit cards he owed $500 on are now in the thousands and we can't pay them. My credit cards are fine. Will his filing Chapter 7 effect our house or my credit? The house is in just my name (I bought it before we were married). What if the house was in both of our names?

Answer 1

Shouldn't affect your house since his name isn't on it.  Would only affect items in his name or in both names.

If the house were in both names, it would be affected unless it was excluded from the bankrupcy filing.

Answer 2

If he is the only one filing bankruptcy it will not affect you at all.  

Answer 3

If the house is solely in your name, keep it that way. If he choses to file bankruptcy, and his credit cards are in his name and his name only, then they won't affect you. But, the bankruptcy will have to include your income as you are part of the median income for him to qualify for a bankruptcy. The attorney and courts will look at the income for the last 6 months, if unemployment, they will look at those pay stubs, assets, list of all his debt and the last 4 years of taxes. Once the bankruptcy attorney reviews all of this, they will be able to tell him which chapter he qualifies for. Seek an attorney in your area, and most will see you on a first free consultation. As an example, if the house were in both your names, you could keep the home and do a re-affirmation to continue to pay thru a chapter 7 if you qualified. Best advise is to seek the counsel of a bankruptcy attorney, gather your paperwork and bring all of that so they can review it with you. You can review bankruptcy on www.totalbankruptcy.com or http://www.uscourts.gov/bankruptcycourts...   Good Luck!