Am I eligible for Chapter 7?

Letter to “Ask Leon”

I am being sued for an auto accident in which the demand is MUCH more than my policy limits. Thinking ahead, if there is a judgment more than my policy, I will file for bankruptcy. I am married, but only I would file because we have no other debt. I make very little money (student), but my husband makes more than the average household income in VA on his own. I don’t think we would qualify for Chapter 7. The problem is that we pay for everything separately. We have separate credit cards and bank accounts and we pay for our own debt (i.e., I will pay for my student loans, he pays for his car) and he REFUSES to put any of “his” money toward any judgment that is made in this suit. Given that, is there a way that I can still qualify for Chapter 7? Do I have to claim all of his income on the means test if not all of it is used for our household expenses? I am very scared that I will be responsible to pay a judgment that I can’t afford because my husband makes a lot of money, which will not be available to pay this debt. Thanks!!

Leon Says…

I really can’t answer a question like this without the benefit of an in depth personal consultation. For example, I don’t know your husband’s personal financial situation. I also am unfamiliar with the law in your state regarding division of assets and income received during marriage. Therefore, I am unable to say. Please get an opinion from a good local bankruptcy attorney immediately.