Is AU of wife's CCs liable during BK in AZ / NV?

[Anonymous]

My friend consulted me for advice because I've been talking his ear off nonstop about fixing & building credit.  So he asked me for some advice.

His wife has approximately $50k credit card debt across maybe 4-5 credit cards.  She is the primary on all of them.  He is only an AU on them.

If she files for BK & files all $50k credit card debt into the BK, he is wonder if this will affect his credit score or if he can some how be held liable.

The credit cards were opened in AZ & they were married in AZ, but then they moved to NV within the past year.  I understand that AZ & NV are both "community marriage law" states, etc. where if you are divorced, the other spouse can still be held liable for the debt even if they never signed anything.

So he's wondering if he can still be held liable & ruin his credit if she files for BK.

Any guidance is appreciated.  Thanks.

[pizzadude]

http://www.nolo.com/legal-encyclopedia/filing-bankruptcy-without-spouse-property-debt.html

[Anonymous]

Thanks Pizzadude.  But I don't see anything in the article that particularly addresses this question (very specific question).

The wife is primary card holder on $50k of credit cards.  He is only an authorized user.  So normally I don't think he would be liable for anything.

But b/c it's a community property state, I'm wondering if he can be sued for the $50k of credit cards which are only in her name.

They have zero property / assets.  Only debt.

[Scupra]

Have him remove himself as AU on the accounts and submit disputes to have them removed from his reports.

"Same as common law property states, only the spouse filing bankruptcy gets a discharge. The non-filing spouse is still liable for his or her separate debts and joint debts. However, the non-filing spouse receives an additional benefit in community property states.

All dischargeable community claims get discharged with respect to community property. This means that all community property, which is also owned by the non-filing spouse, is off limits to the discharged creditors (they can still go after the non-filing spouse’s separate property if he or she was also liable on the debt). This benefit to the non-filing spouse is sometimes called a phantom discharge and it lasts as long as both spouses are alive and still married."

Hope that helps you.

edit: Both AZ and NV are Community Property states

[Anonymous]

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@Scupra wrote:

Have him remove himself as AU on the accounts and submit disputes to have them removed from his reports.

"Same as common law property states, only the spouse filing bankruptcy gets a discharge. The non-filing spouse is still liable for his or her separate debts and joint debts. However, the non-filing spouse receives an additional benefit in community property states.

All dischargeable community claims get discharged with respect to community property. This means that all community property, which is also owned by the non-filing spouse, is off limits to the discharged creditors (they can still go after the non-filing spouse’s separate property if he or she was also liable on the debt). This benefit to the non-filing spouse is sometimes called a phantom discharge and it lasts as long as both spouses are alive and still married."

Hope that helps you.

edit: Both AZ and NV are Community Property states

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Thanks Scupra