Husband declaring ch. 7, should I?
Hello,
My husband and I have been married since March 2008.
About a week after we married, he signed a Promissory Note to purchase a restaurant business for about $250k.
The business has now failed. The owner is going to sue him for the whole amount of the promissory note, if not more.
My husband is going to declare ch. 7 bankruptcy to get protection from this suit, and also because he has about $18k of personal debt that he incurred BEFORE WE WERE MARRIED.
He currently has bad credit, so ch. 7 bankruptcy is pretty much the best option for him.
I however have pretty good credit (in the 700s). I have about $7,500 of debt (1 VISA, 1 store credit card, 1 medical bill). All of these have always been paid on time and we have no problems paying them. My name is the only name on all of these accounts.
The question is whether I need to file bankruptcy or not. My husband already has a bankruptcy lawyer and is in the process of filing, which will cost us $2,100. We were originally thinking I would not declare bankruptcy because my debit is not a problem, and we do not have any joint accounts (except a checking and savings account). However, the lawyer advised my husband that I too should declare bankruptcy to protect me from a judgement or suit for the $250k promissory note. Keep in mind my name is not on the promissory note, but we were married when my husband signed it. My husband and his father signed the note. (His father has his own lawyer and is in the process of settling or declaring bankruptcy on his own). The bankruptcy lawyer told my husband that the holder of this promissory note could come after me for the $250k because I am married to my husband and my husband signed the note.