Legal Question in Bankruptcy in Wisconsin

Ch 7 Bankruptcy; Other Spouse Previously Filed Seven Years Ago; Marital Property Opt Out Agreements

Generally speaking, under current bankruptcy law, a person is only entitled to a chapter 7 discharge once every eight years. You would therefore not be eligible for a normal discharge if your husband filed alone until that much time had passed. Single spouse bankruptcies in community property states (such as Wisconsin) also have pitfalls for couples who own significant assets. For example, a non-filing spouse generally cannot claim the "exemptions," which would normally let one retain most assets normally owned by middle class wage earners in a bankruptcy. Yet, the trustee is allowed to seize and sell the filing spouse's 1/2 interest in all marital property owned by the non-filing spouse in order to pay debts. The upshot of all this is that the unsecured creditors (represented by the trustee) may be able to seize and sell more assets than normal in a joint filing. You therefore need to retain an experienced bankruptcy with experience in these specific issues as soon as possible. I cannot advise you in this online forum; nor are my comments here intended to create any attorney client relationship--you really need to get your own lawyer. Depending upon your history, there may be a conflict of interest between you and your husband in a few respects. Arguments may be available to you that some assets previously owned by you before marriage are not "marital property" as defined by WI law, due to the recency of your marriage or due to the source of funds used to purchase the assets (such as certain inheritances or gifts). Arguments may also be available that some of your husband's debts are not marital debts. Having an executed marital property "opt out" agreement might assist you in this regard, as would keeping your finances and assets as separate as possible from those of your husband. However, this assumes that the opt out agreement is properly served upon creditors in a timely fashion, well in advance of any bankruptcy filing. As you can probably tell by now, this stuff is unbelievably complex and tiny details can determine the final outcome. You therefore really need your own attorney ASAP.