In Bankruptcy, Blog, Chapter 7 Bankruptcy

Depending on what state you reside in, how you file for Chapter 7 bankruptcy may differ. The basic rule of thumb for bankruptcy is that your spouse will be not affected if he/she did not sign for any of your debt. Say, for example, you run a business and are considering bankruptcy. If your spouse did not start the business with you or open a line of credit with you, he/she may be protected from your bankruptcy.

The rules do change somewhat if you reside in a community property state. This means that any property that is acquired during your marriage is considered community property and could be affected by a Chapter 7 bankruptcy filing. In this case, either partner can file for bankruptcy without the other’s approval, and as a result, could result in the sale of community property to satisfy the bankruptcy requirements.

If you have questions pertaining to bankruptcy in Texas, contact the Malaise Law Firm now.