Married, over debt limit, but separate debt

[jamesol]

Looks like I may be one of the growing masses that have unsecured that is over that 336k limit. Just to throw out some numbers - I'm in Massachusetts and between my wife and I we have about 250k unsecured (ccs and loans), and about 170k student loans, along with 100k in a 2nd that could be stripped (we are right on the border of having the home value < the 1st mortgage). So total unsecured is about 520k if we were to strip. However I have about 125k of that unsecured under just my name. The student loan is joint and the 2nd is just under my wife's name.

Meeting with a lawyer this week but I'm not sure what to do here. looks like the options would be to file separate 13s or to go 11 (our combined income is around 160k gross so looks like a 7 would be out..). But I have heard rumors that there has been precedence, or at least a case to be made, where a married couple filing jointly but with separate debt could have the unsecured limits doubled (i.e. it would be 772k instead of 336k), or at least adjusted upward based upon that separate debt.

Anyone have any thoughts or experience with this?

[justbroke]

Looks like I may be one of the growing masses that have unsecured that is over that 336k limit.

I am actually over, but only because of my lien strip. The lien strip didn't count towards my 109(e) limits because it was "secured" at the time of filing. I am also up against the secured debt limit as well.

Meeting with a lawyer this week but I'm not sure what to do here. looks like the options would be to file separate 13s or to go 11 (our combined income is around 160k gross so looks like a 7 would be out..). But I have heard rumors that there has been precedence, or at least a case to be made, where a married couple filing jointly but with separate debt could have the unsecured limits doubled (i.e. it would be 772k instead of 336k), or at least adjusted upward based upon that separate debt.

I absolutely have never read or even heard of the ability to doulbe anything in 11 USC 109(e) which is the part of the Bankruptcy Code which defines "who can be a debtor" in a Bankruptcy Case. I wouldn't count on this at all.

Just because you have gross income of $160K doesn't disqualify you for a Chapter 7. However, the reality is that you probably don't. You need to run your numbers. I'd go to LegalConsumer.COM and try the On-Line Means Test that they have there.

Looks like you could be in a Chapter 11 or Chapter 7 (if qualified). A Chapter 11 requires a lot more work, and will cost you more as well. I have read a case where the cost of maintaining a Chapter 11 was so much, that a Judge granted the debtor relief under Chapter 7, when the Debtor covnerted to Chapter 7. This was because the debtor didn't qualify for Chapter 13 (11 USC 1099e)), and that the Chapter 11, he couldn't afford it.

Of course, your mileage may vary.

[cyn5]

I am curious as to what your lawyer will tell you about this. Right now we are in the same boat and are just sitting here trying to figure out if we can even file. Together our unsecured is way over the 336k limit and because we are technically not legally married, our lawyer suggested we file separately. BUT, my significant other's unsecured it over the 336k limit even if he files separately by himself! I pass the means test for 7, but he does not. And one of the reasons we want to do a ch 13 is due to our student loan debt (automatically goes into forebearance for your bk). Ughhh! Sounds like this is happening to more and more people.

I am seriously just thinking about selling my house and moving out of the country. Ch 11 is way too expensive and you have to pay admin fees every quarter and just sounds absolutely rediculous for an individual to be forced into ch 11 due to debt limts.