What is going to be the effect of a bankruptcy filed by a spouse if they have a joint income tax return?

Although I do not handle tax filings for clients, unless your spouse owes back child support, student loans or back taxes, it should not make a difference. If he owes any of these then you should file married filing separate as the refund should be yours. If you get too much refund if you file together, you may have to prove the refund was a result of the taxes you individually paid. (Too much is defined by the allowable exemptions he has.)

What ever portion of the income tax refund attributable to your husband's income can be used to pay his creditors if you file before he receives the income tax refund. If NONE of his income is taxable (or he had no taxable income), you have nothing to worry about.

Bankruptcy exemptions typically do not protect a tax refund check and it is quite common for a bankruptcy trustee to require that the refund be turned over to repay a portion of the debt. However, you may have more problems than just losing this one time tax refund. Medical debts can be collected against either a husband or a wife, and if your husband filed bankruptcy to eliminate his responsibility for those debts, you appear to have overlooked the fact that as a wife, you are also responsible for paying this debt. Remember your wedding vows said you took each other "in sickness & in health" and most states have interpreted this promise to mean you both have to pay each others medical debts.

Your spouse potentially has community interest in the assets you mentioned (car & house) regardless of the fact that you hold title and those assets UNLESS they can be exempted can be taken by the Trustee in bankruptcy. Consult a bankruptcy attorney before doing anything and discuss with that person your income tax concerns.

In Colorado, at least, the trustee will not usually take a tax refund it the only earner in the household is a non-filing spouse. However, even if your husband files an individual case your income will be counted in determining whether he is eligible to file a chapter 7 case. He should consult with a lawyer to make sure that bankruptcy really is the right option for him.

This is something that will vary by state. Idaho is a community property state and that tax refund is usually community property. The Trustees demand the full refund be turned over (with your exempt or non-estate portion returned to you). In Idaho, it is not likely the best plan to file by yourself as you could be on the hook for the medical debts as much as your spouse. Even if he files, they could still sue you and get a judgment lien on your home.