Effects of Spousal Bankruptcy on Other Spouse

What is the name of your state? Missouri

My spouse has recently reached a point where her income is not able to cover her debt payments. The vast majority of her debts are pre-marriage; the largest are education loans. She has one loan for a piano taken out after marriage, otherwise none of our post-marriage assets were purchased by her. I rent our apartment. She has a son she pays private school tuition for - no scholarship. My spouse is employed full-time.

Is personal bankruptcy recommended based on the above information? If so, then which type, 7 or 13? How would declaring bankruptcy effect her credit; my credit? Are there debt consolidation loans available that could be used to reduce some of the interest on debts with 15% + interest rates?

[Ladynred]

How much debt are we talking about here ??

Ch 7 gets rid of all unsecured debt for good. Ch 13 you pay back creditors, based on disposable income, over a 3-5 year period.

IF she files for BK, it will be on her credit for 10 years for Ch 7. All the unsecured debt can be discharged. The impact it will have on your credit depends on joint debts, as she will have to include those as well, and on those it might show up as 'included in bankruptcy' on YOUR credit report. That may change since the latest class action suit agains the credit bureaus though. Other than that, it should not affect your credit at all. Getting any joint credit afterwards would certainly be difficult for a few years.

Her student loans cannot be discharged except under some very strict conditions.

I would stay away from debt consolidation loans or debt managment/negotiation/settlement companies. They're bad news and will usually wreck your credit as badly if not worse than bankruptcy. You can't win the credit game by borrowing more.