Significance

• Your husband can legally file bankruptcy without including you. In a community property state, however, the impact on you will be greater due to the fact that property held in your name that was acquired during the marriage is considered to be your husband's property as well and can be seized by the bankruptcy court.
  
  

Considerations

• The bankruptcy court cannot seize possessions that are in your name only if you live in an equal distribution state. If you live in a community property state, possessions in your name that you acquired prior to the marriage will be safe from the bankruptcy court.
  
  

Benefits

• If your husband is unemployed and you work, the bankruptcy court may not be able to seize half of your joint tax refund. You can apply with the court to have the tax return processed and released to you as the primary earner.
  
  

Misconceptions

• It is typically thought that if one spouse files for bankruptcy, the non-filing spouse's credit rating will be spared. This is not always the case. If you hold joint debts with your husband that are included in the bankruptcy, evidence of a bankruptcy filing will appear on both of your credit files.
  
  

Warning

• If you choose not to file for bankruptcy along with your spouse, you will not be eligible for any of the protection that bankruptcy provides from creditor lawsuits, judgments and wage garnishments.