Qualification

• Due to new restrictions implemented by the Bankruptcy Abuse Prevention and Customer Protection Act of 2005, or BAPCPA, all debtors must qualify for bankruptcy by taking the means test. The means test is a calculation that takes into account your income, expenses and debts to determine if you can afford to make at least some payments to your creditors. If you have no such disposable income, you probably qualify for a Chapter 7 bankruptcy, otherwise you may be forced into a Chapter 13 bankruptcy. If your spouse is filing alone, you still must use your combined income and expense for purposes of the means test calculation.
  
  

Debts

• If you have outstanding debts in your name only that you incurred before your marriage, your spouse's bankruptcy discharge will not apply to those debts. Similarly, debts incurred by both of you jointly are also not discharged by one spouse's bankruptcy, as creditors have the right to pursue the nonfiling spouse for debt repayment. In community property states, spouses are jointly liable for all debts incurred after marriage, regardless of whether or not only one spouse is listed on the debt. Thus, one spouse filing for bankruptcy may not be an appropriate choice if marital debt was incurred in the community property states of California, Nevada, Idaho, Louisiana, Washington, Arizona, Oregon, New Hampshire and New Jersey.
  
  

Property

• If you file a Chapter 7 bankruptcy, any property you own above state exemption levels must be turned over to the bankruptcy trustee to help satisfy creditors. Even if only one spouse files, marital property in excess of the approved exemption levels must be turned over to the court. In community property states, although the nonfiling spouse is still technically liable for any joint debt incurred by a couple, the community property of the estate is protected by the bankruptcy discharge.
  
  

Credit

• Credit scores and reports reflect the payment history of individuals, so if your spouse files bankruptcy your credit report should remain unaffected. However, as your spouse's credit score will be significantly damaged by the bankruptcy, you may find it difficult to obtain joint credit in the future. For example, if you intend to take out a mortgage, you may be denied or have to pay higher rates due to the bankruptcy of your spouse, even if you didn't file with her.