The details matter. Not disclosing income on the bankruptcy schedules would amount to bankruptcy fraud if the disclosure would make a difference in the outcome of the bankruptcy. If it is a Chapter 7 bankruptcy the unreported wages of the wife may not make that much difference unless it were to result in forcing conversion to a Chapter 13. Accruing debt with the intent to never repay it and instead discharge it might also be fraud against the creditors. But without reviewing the details of it all no one here can tell you how likely it may be that he would get charged with anything out of this.

