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Colorado is not a community property state, so you might be able to file for bankruptcy without significantly affecting your wife's credit, assuming that most or all of the 80-90 in medical bills and credit card debt is in your name.
Is SOLELY in your name, and not joint debt.
To determine whether or not bankruptcy might be a viable option for you, could you please tell me whether your household income (including your wife's business and your business) exceeds $64,300 per year?
Also, could you sell your construction business if you had to do so? If you could, please provide your best estimate of how much you would expect to receive from the sale of your business.
Once I receive your responses to these questions, I can provide you with a more accurate answer. Thank you.
Your gross income would be counted for the purposes of determining your Current Monthly Income in Bankruptcy. Since your taxable gross income was $86,500, you would definitely be over the median income for a two-person household in Colorado (which is $63,400), This doesn't mean that you are ineligible for a Chapter 7 Bankruptcy per se, but you will need to meet with a local attorney to determine whether you are still eligible based on your particular circumstances. Another potential option for you might be a Chapter 13 Bankruptcy, where you would pay all of your disposable income into a Chapter 13 Plan for five years, and then your debt would be discharged upon completion of the five-year Chapter 13 Plan. There's also the possibility of debt settlement, which might be another alternative to look into given that much of your debt appears to be unsecured.
Many bankruptcy attorneys provide free consultations to prospective clients. You might want to schedule such a consultation with a local bankruptcy attorney to determine whether you are a good candidate for bankruptcy given your specific financial situation.
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