How to File Bankruptcy Without Your Spouse
- 1). Evaluate your debt. It defeats the purpose of filing for individual bankruptcy if the entirety of the debt will simply transfer to your spouse. This will happen only for debts in both of your names, meaning for which both of you signed the original agreement. Car loans and home mortgages often fall into this category. However, just because your spouse is authorized to use a credit card doesn't make him liable unless your spouse signed the credit card agreement.
- 2). Avoid fraudulent transfers. If you know you're going to file individually, it's tempting to transfer your valuable assets to your spouse to keep them out of bankruptcy. The court is not so easily fooled and will consider any transfer of property to your spouse, relatives or others within a year prior to your bankruptcy a fraudulent transfer. If necessary, the trustee will physically seize property thus transferred for inclusion in your bankrupt estate.
- 3). Consider community-property implications. If you live in one of the nine community-property states, you will also have to consider how community property laws will affect your spouse. Generally, all community property is subject to the individual bankruptcy of either spouse. If your spouse owned considerable property before the marriage, it may make sense to file for bankruptcy individually.
- 4). Do not list a joint debtor on Form B1. When it comes time to actually file your bankruptcy petition, do not list any names in the space for joint debtors on Form B1, the Voluntary Petition. You will have to disclose your spouse's identity on the Statement of Financial Affairs, Form B7, but this will not make your bankruptcy a joint matter.