Eligibility

• Your present and past financial situation determines your eligibility to declare bankruptcy without your spouse. If you have declared Chapter 7 bankruptcy within the past eight years, you are not able to file again with or without your spouse. You must pass a means test that examines your income-to-expense ratio. This test encompasses all household income within the previous six months and the debts--including your spouse's--you pay each month then compares the net amount to the median income for your state. Failing the means test requires you to file Chapter 13 where you will make payments toward your debt.
  
  

Debt Ownership

• If you jointly own your debts with your spouse, declaring bankruptcy alone will not help you. Most married couples have mortgages in both names but many have separate unsecured debt. Your spouse will remain liable for payments on joint accounts but accounts that are in your name or accounts where she is an authorized user will be erased after the conclusion of your bankruptcy.
  
  

Community Property

• Living in a community property state can make declaring bankruptcy as an individual useless. Laws in community property states (Wisconsin, Arizona, Idaho, Nevada, California, Louisiana, New Mexico, Washington, and Texas) obligate both spouses to debt even if it is contracted in only one name. An attorney can help you sort out the ramifications of community property.
  
  

Consequences

• Bankruptcy can remain on your credit report for 10 years. Joint debts declared in bankruptcy may appear on your spouse's credit report even if she reaffirms the loan. Your bankruptcy can negatively affect future joint applications for credit with your spouse. The individual debts that you have discharged in your bankruptcy should not appear on your spouse's credit report.