Can only one spouse file chapter 7 if all the debt is in the one spouse's name?
Starting Score: EQ593 EX 633 TU 649
Yes, sort of.
Both incomes count when you're trying to qualify for a CH7 (there are maximum income limits) regardless of who's actually doing the filing.
Also, in community property states, the original creditor may have the right to attach the debt to the spouse. In other words, it may be considered a "marital debt". However, even in community property states, this rarely happens.
Best to talk to a few BK attorneys to find out your state specific rules/income limits.
-SM
Starting Score: ~470 preBK(8/2010)I am wondering specifically about Nebraska aand it is all medical debt under her name. probably $20k. is it better to get a clean slate or work through the debt? I am fairly certain we can pass the means test. We worked so hard to get through our chapter 13 and rebuilt my credit but hers is still pretty destroyed. whats the best course of action?
Settle it!
Medical debt will settle for 10-30¢ on the dollar. So you really have somewhere between $2000 and $7000 in debt.
I don't know anything about Nebraska's laws; but I don't think you should file on this anway.
-SM
We talked a lot about this and are going to pay it off.
Don't pay it off in full, that would just be a waste of money (especially if it's already delinquent). Settle it.
-SM
