Hi everyone, the title says "we" but it's actually my DH who might file.
Our situation is a little unique and I've searched through old threads but haven't found a case like ours yet.
My DH and I both owned homes prior to our marriage. Both homes are underwater because we bought right before the market crashed in 2008. I currently work part time but I am losing my job soon. I have money saved in several different savings accounts that are in my name only. I have some stock options which I need to exercise shortly after my last day at work. The stock options will be paid to me like earnings and will go into my personal checking account. I do not plan on going back to work because we have a young child. I have no credit card debt and my mortgage is up to date and we live in my house. I have significant student loan debts as well which are being paid by my DH.
My DH has about $15K in credit card debt. We tried to do a short sale on his house but the bank is refusing to approve it and now want my DH to sign a very large promissory note (I think they are asking for $85K). And even if they did approve the short sale, because the mortgage forgiveness bill was not extended to 2014, we could be on the hook for a large tax bill. The lawyer we've been working with about the short sale is advising my DH to file for bankruptcy. We're meeting with the attorney next week but based on our finances I'm assuming we would have to file Chapter 13.
We live in Illinois which a tenancy in entirety state so my DH's creditors cannot come after my savings because it's not real estate. I understand my part time earnings would be included in the means test and I think it will push him into Chapter 13.
My savings plus the stock options would probably be enough to pay off my husband's credit cards and the amount my husband's mortgage holder is asking for. Alternatively, I could also use that amount to pay off my student loans in full. But then we would have no savings and there is no way with the my husband's earnings that we could save the same amount of money again.
We don't care about saving DH's house and my DH has no property he needs to protect. All he has is his house and his car which will be paid off in about 9 months).
What do you guys think about this? Is a large foreclosure deficiency (probably about $80K to $100K) be worth filing even if the credit card debt is relatively small? I just don't see any other way out of his mortgage other than bankruptcy.
I was thinking that because I have savings and credit cards that we could get through DH being in Chapter 13 in good shape. We can live on his earnings without dipping into the savings and if an emergency arises we could pull money from my savings without accruing additional credit card debt.
Our situation is a little unique and I've searched through old threads but haven't found a case like ours yet.
My DH and I both owned homes prior to our marriage. Both homes are underwater because we bought right before the market crashed in 2008. I currently work part time but I am losing my job soon. I have money saved in several different savings accounts that are in my name only. I have some stock options which I need to exercise shortly after my last day at work. The stock options will be paid to me like earnings and will go into my personal checking account. I do not plan on going back to work because we have a young child. I have no credit card debt and my mortgage is up to date and we live in my house. I have significant student loan debts as well which are being paid by my DH.
My DH has about $15K in credit card debt. We tried to do a short sale on his house but the bank is refusing to approve it and now want my DH to sign a very large promissory note (I think they are asking for $85K). And even if they did approve the short sale, because the mortgage forgiveness bill was not extended to 2014, we could be on the hook for a large tax bill. The lawyer we've been working with about the short sale is advising my DH to file for bankruptcy. We're meeting with the attorney next week but based on our finances I'm assuming we would have to file Chapter 13.
We live in Illinois which a tenancy in entirety state so my DH's creditors cannot come after my savings because it's not real estate. I understand my part time earnings would be included in the means test and I think it will push him into Chapter 13.
My savings plus the stock options would probably be enough to pay off my husband's credit cards and the amount my husband's mortgage holder is asking for. Alternatively, I could also use that amount to pay off my student loans in full. But then we would have no savings and there is no way with the my husband's earnings that we could save the same amount of money again.
We don't care about saving DH's house and my DH has no property he needs to protect. All he has is his house and his car which will be paid off in about 9 months).
What do you guys think about this? Is a large foreclosure deficiency (probably about $80K to $100K) be worth filing even if the credit card debt is relatively small? I just don't see any other way out of his mortgage other than bankruptcy.
I was thinking that because I have savings and credit cards that we could get through DH being in Chapter 13 in good shape. We can live on his earnings without dipping into the savings and if an emergency arises we could pull money from my savings without accruing additional credit card debt.
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