One Spouse files?

[dudley3874]

Hello,

I am in need of advice, if one spouse files and the other does not, how does that affect the following: Mortgage, Vehicle loan, Boat loan & Home Equity loan?

My debt is $65K am being sued by one OC CC, one JDB for CC and have a third one that is lining up with the same attorneys as the JDB..........


Thanks,

D

[shark66]

Assuming you're filing Ch. 13 (since you've posted in this subforum), you'll have to list all of your debts, and that includes mortgage, HELOC and car. Even ff you don't have any arrears on these, they'll most likely be included in your plan. With mortgage and HELOC it would really make no difference, but it might make the difference with the car payment if you were not allowed to keep it out of the plan. I'm sure someone more experienced than me will chime in on this particular issue.

You might have to surrender the boat. A lot depends on the overall picture which is a combo of your income/expenses/debts incurred/state you're in and a few other things...

Does your spouse have any significant debt?

Have you checked the means test to see whether you'd qualify for a Ch. 7?

Good luck.

[lrprn]

...if one spouse files and the other does not, how does that affect the following: Mortgage, Vehicle loan, Boat loan & Home Equity loan?

Each is a loan tied to a secured asset, so it depends on (1) whose names are on the loans - yours, your spouse, or both; (2) which state you live in; (3) if you live in a community property state, when the debts were created (before or after marriage and residency in the community property state); and (4) for the mortgage, whose names are on the house deed.

So, going down the list one by one, which of your names are on each of the loans and on the house deed? Which one of you is thinking about filing Ch 13 alone? Which state do you live in?

[dudley3874]

Re:

Live in Fl

Both names are on the home, HELOC, car and boat. I have more debt than her. So I would be looking at filing.

Ch 7 probably don't qualify, due to income, debt is 5 CC's @ 60Kish......

[boochase]

I am going through the same thing in FL. Here is the advice of my attorney: If you have any significant non-exempt assets (cash, non-IRA/401/retirement funds, stocks, bonds, etc), then look to file Ch13 to protect those. Your CC's (unsecured debt) will go into the Payment Plan, where the payments are the greater of your disposible monthly income or your non-exempt assets divided by the number of months of your plan. Plan to keep your secured assets (house, car, boat, etc), and continue to pay them. With the titles the way they are, forget about stripping. Since my cars are leased and I don't own a boat, I do not know how that will work if you want/have to surrender them. Basically, I am looking at CH 13 as a way to get rid of my CC debt in 3-5 years instead of 65 years.

[dudley3874]

Re:

BooChase,

Nothing of assets to speak of, just Debt that I am being sued on..... Credit card debt

[boochase]

Then I would seriously consider ch7..gets rid of the CC debt and allows you to surrender any secured debt. So, why not keep (reaffirm) the house (pay the mortgage and the HELOC), keep the car if you can afford it and the same with the boat. If you can't afford any of these, then your wife will have to file ch7 as well, for her name is on the mortgages. This is my understanding ala my attorney.

[woeisme]

poster already said didn't qualify for CH 7 due to income.

I considered filing CH 13 by myself since most of debt was in my name, but it got so complicated that we ended up filing jointly to keep creditors from going after my spouse, even though his name not on account, they get real aggressive in collections and we just didn't want to deal with being hounded for the rest of our lives, the CH 13 budget is the same whether 1 files or both, so might as well get the court protection for both of us. Plus I was afraid if we had access to his lines of credit, we'd just end up racking up bills under his name and not truly adjust our spending the way we needed to, and the way CH 13 forced us both to. it worked for us, may not be what you want to do, but consider it as a possibility.

[ccfriend]

I filed without my spouse. The auto loan, mortgage and home equity were in both names and paid outside the plan. My credit report states I am in ch 13 but my spouses says everything is paid on time and there is no blemish on his credit!

[boochase]

I filed without my spouse. The auto loan, mortgage and home equity were in both names and paid outside the plan. My credit report states I am in ch 13 but my spouses says everything is paid on time and there is no blemish on his credit!

This is the result for which I am looking. Have you tried to buy/lease a car yet? If so, what were the results--normal or high interest rate? If not, explain the rejection. My wife has her own CC with high limit so I am not concerned there. Just auto loan/lease. Thanks.

[ccfriend]

This is the result for which I am looking. Have you tried to buy/lease a car yet? If so, what were the results--normal or high interest rate? If not, explain the rejection. My wife has her own CC with high limit so I am not concerned there. Just auto loan/lease. Thanks.

My husband was approved for an auto loan and had no problems with the interest rate. I am not on the new loan. Hope that helps! He went through a credit union in which none of the debt I bked was from.

Hope that helps!

[Cgriswold]

Likewise in our situation. I had an old card sue me and basically force me into a 13 of about 28k. I filed and my wife did not. All car loans and house were already in her name and her financing. All are handled outside the plan. He credit remains perfectly intact and in fact, her use of her Amex and another card with me as an authorized user(from before the bk) has given my record nothing but positive entries. A little over a year into the plan and things are working well so far. Our budget is not draconian, I am replaying 100% of my unsecured claims and she still has credit in case of emergency only.