Ok, Say I have to file sooner than later ....

[phoenix44212]

So if someone, ie my bk unfriendly creditors, decide to sue me or garnish my wages for my past sins and I haven't completed my divorce what would you suggest?

facts:
1. I'm following advice to not file until the divorce is over.
2. I'm contributing my share of the mortgage and 2nd and paying my car loan. We're a little behind on the second. Neither of us can afford the house separately.
3. I'm staying in the house because of poor credit and the thought of trying to find even more money for huge rent deposits and utility deposits to move
out is daunting.
4. I've talked to an attorney. I've retained them and am paying montly for the fees. They think 7 will work (with daughter and separated).
5. I have a divorce attorney too to feed.
6. Oh, and my SBX and I don't get along :}

If I go Chapter 13 I can catch up on house payments but what if then my darling SBX decides not to pay their share? i could go chap 7 but either way:

The means test would now be a nightmare because her wages would be included and the from what I've read the marital adjustment is, shall we say a nightmare.

Any strategies or experiences?

[CindyLou]

have you considered that debts that are in the divorce decree are treated differently....you may want to ask you attorney that question. I'm not sure in your case if it would matter, but it would be a good question to ask.

[HHM]

have you considered that debts that are in the divorce decree are treated differently....you may want to ask you attorney that question. I'm not sure in your case if it would matter, but it would be a good question to ask.

Yeah, there is now a "catch" with BK and divorce...if joint debt is divided in Divorce Court and put down into the divorce decree...your obligation to your ex-spouse for your part of the debt cannot be discharged (not, it will be discharged vis-a-vis the original creditor).

Houses are very tough issues in Divorces because of their secured status and most of the time, neither spouse can afford the house on their own, and if one spouse decides not to pay, by the time you get that issue resolved, the home is in foreclosure anyway. In most divorce cases, the house should be sold if the spouse who would be living in cannot afford the house independant of their ex.

[phoenix44212]

Security deposits?

HHM, you are correct about the changes in the bk law and marital debt distribution. Most of the debt is mine on cc's even though most of the marital
property is ours. (We bought dryer, furniture, home improvement,etc on cc's). SBX may come after money they feel they contributed more in the downpayment but we shared on the improvement on the house we sold (in their name) and without the improvements we wouldn't have had a down payment. (The money for the earlier house's downpayment was city grants). Which is one of my concerns. In chapter 13 there is still some ability to discharge marital debts if they are not secured nor in the form of support or maintenance. My concerns are:
1) how do I save enough money for a security deposit to overcome the bad credit and possible bk filing (timing problem).
2) if i go through foreclosure and don't pay mortgage, etc what becomes of the money, does the bk trustee just take it and then I'm out security deposits and the ability to acquire a place to live
3) if i go through foreclosure what do I use for my expenses (paperwork B22A or B22C, Schedule J since I haven't been paying mortgage or rent?

It seems to be a catch 22, .....kind of like bk in general

[lrprn]

My concerns are:
1) how do I save enough money for a security deposit to overcome the bad credit and possible bk filing (timing problem).

If you stop paying your non-secureds and still don't have enough money left over to save for a security deposit and bk filing, then bankruptcy isn't going to help you. You need to look closely at where your money is going because you have too much secured debt compared to your income. You'll have to consider letting some of your assets go so that you can live within your means every month.

2) if i go through foreclosure and don't pay mortgage, etc what becomes of the money, does the bk trustee just take it and then I'm out security deposits and the ability to acquire a place to live

Once you file, Ch 13 is designed to take every bit of disposable income you have to pay your creditors for 3-5 years. The only way to amass money for deposits and lawyer fees is to stop paying your non-secureds before filing and save that money for those purposes. It's called bk pre-planning and many here have done it successfully. You can too.

3) if i go through foreclosure what do I use for my expenses (paperwork B22A or B22C, Schedule J since I haven't been paying mortgage or rent? [/quote] If the bank hasn't foreclosed on the house yet, even though you haven't actually been paying the house payment, you still get to use the figures on your Means Test.

Once you are certain you are going to file bk, you need to analyze your budget carefully to see what's going to be left over after you stop paying non-secureds and any secureds you intend to surrender to find out if bankruptcy is actually going to help you or not.

It seems to be a catch 22, .....kind of like bk in general

Filing bankruptcy is serious business. The bk card should never be played unless it's going to actually help you recover and makes sense for your financial and personal situation. The consequences associated with bankruptcy can follow you for 7-10 years depending on which chapter you file. Thank goodness we get to see here every day that filers do recover long before that time and go on to a much less stressful financial life because they embrace the hard-won lessons that bankruptcy teaches each of us...no matter what the circumstances, you must find a way to live consistently within your means.

[phoenix44212]

But isn't the security deposit that you put on the new apartment just going to be taken by the trustee? This extra money to be saved for all the deposits..isn't that just going to go to him?

[SinkingFast]

For a Security Deposit,............ For an apartment or utilities or whatever,.......... Those are listed on Schedule B, Personal Property. The $$$ amount and the business holding the Security Deposit is listed. You would have to have some sort of Exemption to cover the Security Deposit as it does get listed again on Schedule C, Property Claimed as Exempt.

I did note in our Petition that our attny used a totally different Exemption Statute Code for the Security Deposit than for any other personal property. Perhaps your State would have an Exemption that could be used specifically for that purpose. For Security Deposits.

Then, Leases are listed again on Schedule G. Executory Contracts and Unexpired Leases. Your Landlord would be listed and a statement about your lease would be noted.

[phoenix44212]

Thanks,

lrprn is correct in that the mortgage and second were above what we really
could afford, and half of that is more than I really can afford and still have any money which to save (I am paying two attorneys too: bk and divorce).
I feel bad about contemplating letting the house go the way of foreclosure but I don't see how I can accumulate security deposits and rent unless I don't pay. I was just worried that I wouldn't pay, the house foreclosed, and
the money saved would still go to the trustee and myself and my daughter would have nowhere to live.