Q: Will having no income affect filing?
Wanting to file chapter 7 on credit card debt but the debt was incurred when I didn’t have a job. We always used my husbands income to make payments but with inflation and rising interest rates the credit cards have become unmanageable. Will it affect me filing? Will it affect my husband?
A:
Having no income, or limited income, can affect your ability to file for Chapter 7 bankruptcy, but it doesn't necessarily prevent you from doing so. Chapter 7 bankruptcy is typically intended for individuals with unmanageable debt who cannot reasonably repay their creditors. If your credit card debt was incurred during a period when you had no job, it can be considered unsecured debt and may be eligible for discharge in a Chapter 7 bankruptcy.
However, the bankruptcy process takes into account the household income, including your husband's income, when determining eligibility. Your household's income compared to the state's median income will be a crucial factor. If your household income falls below the median income for your state, it may make you eligible for Chapter 7 bankruptcy.
Your husband's income is considered as part of your household income, but this does not mean that his assets or income will necessarily be affected. Your husband's assets and income can typically be protected in bankruptcy, and his credit will not be impacted if he is not a co-signer on your credit card accounts.
It's essential to consult with a bankruptcy attorney to evaluate your specific financial situation and determine whether Chapter 7 bankruptcy is a viable option for you. They can provide guidance on eligibility, exemptions, and the potential impact on your financial future.
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