Wow...thanks for all of your great advice guys....I've pretty much settled on one of two decisions on my current situation (Chapter 13 while divorcing and husband wants the house but seriously can't afford it...):
1) I insist we sell the house or
2) I convert to a 7
Yet another question though. If I convert to a Chapter 7 what happens to the debt?
Before the Chapter 13:
1) I had 6K of premarital credit card debt and a medical bill.
2) Husband had around 80-100K in debt between judgments, medical bills, a foreclosure and car repossessions.
3) Our current debt together is our home (in both our names) with a purchase price of 96K over 15 years at 8% interest. We have paid 37K so far on the mortgage.
4) Also a $4900 loan through the electric company for a heating/AC unit. We got this financing in December 08 in both of our names, with a pay off of 47 a month for 10 years.
If I convert to a Chapter 7 and liquidate what happens to all of the debt above? Is half of my husband's 80-100K wiped out in my Chapter 7 or does all of his debt go back to him and only my premarital debt is liquidated?
What happens to the mortgage? After I file Chapter 7, does he have to pay the remainder of the mortgage at 100% of what is now owed? And the AC unit loan? Does it default over to him at 100%?
Please forgive me ignorance. I am really just afraid of being completely fooled and I've had more guidance here than anywhere else. Ideally I would love to keep my house, my pool and the friends I have made here...but I've really not been left with any choice in the matter...It's okay though...My life will be better. I just have to figure out how to work out the legalities and all will be fantastic :o)
Oh, and I cannot find a divorce attorney within my price range that knows ANYTHING about bankruptcy...that has been one of my biggest hurdles. I have talked to every attorney in middle Tennessee and the only one I can afford gives me the same answer every time I mention the bankruptcy. "Sorry, I don't know a thing about that..." It has been a confusing 2 months...
1) I insist we sell the house or
2) I convert to a 7
Yet another question though. If I convert to a Chapter 7 what happens to the debt?
Before the Chapter 13:
1) I had 6K of premarital credit card debt and a medical bill.
2) Husband had around 80-100K in debt between judgments, medical bills, a foreclosure and car repossessions.
3) Our current debt together is our home (in both our names) with a purchase price of 96K over 15 years at 8% interest. We have paid 37K so far on the mortgage.
4) Also a $4900 loan through the electric company for a heating/AC unit. We got this financing in December 08 in both of our names, with a pay off of 47 a month for 10 years.
If I convert to a Chapter 7 and liquidate what happens to all of the debt above? Is half of my husband's 80-100K wiped out in my Chapter 7 or does all of his debt go back to him and only my premarital debt is liquidated?
What happens to the mortgage? After I file Chapter 7, does he have to pay the remainder of the mortgage at 100% of what is now owed? And the AC unit loan? Does it default over to him at 100%?
Please forgive me ignorance. I am really just afraid of being completely fooled and I've had more guidance here than anywhere else. Ideally I would love to keep my house, my pool and the friends I have made here...but I've really not been left with any choice in the matter...It's okay though...My life will be better. I just have to figure out how to work out the legalities and all will be fantastic :o)
Oh, and I cannot find a divorce attorney within my price range that knows ANYTHING about bankruptcy...that has been one of my biggest hurdles. I have talked to every attorney in middle Tennessee and the only one I can afford gives me the same answer every time I mention the bankruptcy. "Sorry, I don't know a thing about that..." It has been a confusing 2 months...