Legal Question in Bankruptcy in North Carolina

A discharge in bankruptcy filed by your wife did not change your relationship with the lender. You remain liable and the creditor could pursue collection from you, unless she is in a Chapter 13. You indicate that you are judgment proof. Others reading this answer may not be. In the event a former spouse files bankruptcy and the debts that are to be discharged include debt she/he has agreed to pay in a divorce decree, the other spouse must file an Adversary Proceeding to protect against having to pay those debts. The bankruptcy code sees it to be unfair for a spouse to obtain assets with a promise to pay debt in a divorce and then discharge the debt. One final note, the phrase "charged off" is an accounting term which is use to describe debt held by a creditor that is determined to be not collectable and thus deductible from income on its tax return. It does not mean that it will not be attempted to be collected nor does it mean it is forgiven by the creditor. In the case of banking or regulated lenders, charge off is required for debt which is delinquent over a certain number of months and charging off requires more capital reserves to be set aside to meet regulations, thus less money available to lend.