Complicated

[frustrated51]

In a community property state can you file separately? Because of students loans the two of us together go over the maximum unsecured debt amount so we don't qualify as a couple. Do creditors typically object?

Thank you,

[HHM]

Yes, you can file separately, and no, creditors do not usually object.

[frustrated51]

So if we file separate ch 11's how do the joint bills work? Mortgage would just continue to be paid regularly I assume it isn't put on a 3-5 yr plan. IRS, car loans (1 already repo'ed with a balance), IRS and medical bills are the other joint accounts. I have very little income (less than 20K this year probably 8K next year). How would we divide up accounts?

[HHM]

First, are you prepared for the cost of a chapter 11 (20,000-$40,000 when all is said and done). I thought your goal was to file separately to get within the debt limits. Generally, in a community property state, for joint debts, so long as one spouse files, the other is protected.

Why do you need to be a chapter 13 or an 11. What are you trying to accomplish with your BK that you cannot do in a 7.

[frustrated51]

We have IRS debt and student loans which the 7 will do nothing with. The advantage fo the 11 or 13 is to keep people from suing us and making sure they understand that they are not the priority at the moment. The IRS needs to be paid. Our students loans are large enough and the interest is high enough I think there is a change it might be knocked down. The cost is one thing that has been putting me off about the option.

[NoTomatoCan]

How much student loan and IRS debt do you have individually? My wife and I have a total of about $420k together (CCs, Student Loans, IRS, etc...) but both individually have less than $336k so we can file separately. Atty says trustee will simply join the two cases, and it will be like we filed together.

I am not following why you think Ch11 is better than Ch13 for people suing you? We have some business deals that have gone south and once we file, they will have to get in line with other unsecured creditors, regardless of whether they have filed a lawsuit or even gotten a default judgment.

[frustrated51]

How much student loan and IRS debt do you have individually? My wife and I have a total of about $420k together (CCs, Student Loans, IRS, etc...) but both individually have less than $336k so we can file separately. Atty says trustee will simply join the two cases, and it will be like we filed together.

I am not following why you think Ch11 is better than Ch13 for people suing you? We have some business deals that have gone south and once we file, they will have to get in line with other unsecured creditors, regardless of whether they have filed a lawsuit or even gotten a default judgment.

I don't think there is any difference between 11 and 13 about people suing us just 13 is cheaper from what I have heard and it is easier for find an atty to do a 13 than an individual 11.

I have about 200K in student loans and my spouse has $120K. We owe the IRS $26,000 that is a filed jointly amount.

Is your atty charging you for 2? What happens if only 1 files when you have joint income. At this point I probably don't have enough income to file an 11 alone.

[HHM]

Well, NO CHANCE of getting your student loans knocked down in either a 13 or an 11. I think for cost purposes, only one of your files, pay the IRS through the chapter 13, and you will emerge from BK with with the student loan debt.

[frustrated51]

Thanks HHM that makes sense. So everything that is joint can be taken care of if my spouse only files? Spouse income only would be used as basis? How would the expenses be decided? I have almost no income right now so spliting all expenses in 1/2 to figure out how much is left wouldn't work out well. No one would come after me? I think this is a good plan, but just want to make sure I understand everything correctly.

[HHM]

To do this, you need a lawyer, this is not a case that should be pursued on your own.

The court looks at "household" income, so spousal income is a factor in BK even if only one spouse is filing. However, you also get to deduct the non-filing spouses expenses.

[frustrated51]

According to NOLO Means Test we have $ -844 disposable income. I swear it counted some expenses twice though so it might be $499 positive.

How will this work in a Chap 13 filed by only one of us? That includes my income for the last 6 months, but not the few bills that are in my name only. Our income has dropped $1377 a month compared to the average for the last 6 months.

Will one person filing Chap 13 work for us if those numbers are correct? The minimum for the priority IRS account over 60 months will be 434.

Thanks

[HHM]

According to NOLO Means Test we have $ -844 disposable income. I swear it counted some expenses twice though so it might be $499 positive.

How will this work in a Chap 13 filed by only one of us? That includes my income for the last 6 months, but not the few bills that are in my name only. Our income has dropped $1377 a month compared to the average for the last 6 months.

Will one person filing Chap 13 work for us if those numbers are correct? The minimum for the priority IRS account over 60 months will be 434.

Thanks

Go hire an attorney. Your questions are getting too specific and technical for this forum to really be able to guide you at this point. If you don't hire an attorney, you are shooting yourself in the foot.