Newbie needs help

[BnkrptcyLwyr]

Mr BKlawyer I just sold the house in PA I owned the house before we were married. My wife has financial interest in the house she in initialed to 50% on the increase in equity since the day we were married. Before we filed I had remortgage the house I could not close that loan with out her permission. I could not sell the house with out her signing the deed possibly I had 2 tattle companies that were mistaken?

Don't confuse an overabundance of caution with legal reality. It is much safer from a legal C.Y.A. perspective to have the wife sign on the deed (even if *legally* she has no interest in the property).

[BnkrptcyLwyr]

Thank you. I thought I had made it clear from the beginning, I don't have an interest in the home. However, I just did the means test for my husband alone using ordinary income and not pension income. I come up with negative (954) Yes he probably could go chapter 7 with me but being the man he is, he will opt for chapter 13 and pay the debts over time or bite the bullet and just keep paying these banks that are not consumer friendly. Keep in mind. The original amounts were not that high until these cc banks started changing card holder agreements about 4 years ago and upped the interest rates from between 4 and 8 percent to 23 and 31% even though there was never one late payment on any of them. The debt has trippled over the last 4 years. These cards have not been used in years. And most of them were balance transfers to 4% for life. Well that didn't happen. One of the cards has $2300 on it. The payment is $281 a month. What's wrong with that picture? The balance never goes down.

Alright, from you're telling me, you are doing the means test wrong. Or let me clarify, your calculation of disposable income is not the legal calculation of "disposable income."

You must include all income except certain categories - social security, unemployment compensation (in general), and some others. Pension income is not excluded (for either you or him). You must include his income in your calculation, and vice versa.

You cannot deduct for credit card payments.

Please, talk to an experienced attorney. The means test, while a little complicated, is not that hard to figure out, but you need to know what to include and exclude, what expenses you can and cannot deduct, and what "special circumstances" you may deduct (if you're above median income debtors).

[uptomyears]

BnkrptcyLwyr Could you explain that a little more. What is a cya?
The reason we did the will the way we did was to protect his childhood home from anyone taking it away from his kids. The rightful owners period.
See, Years after the death of my father my mother remarried, her new husband was an AH and convinced her that her children didn't really love her and to protect her assets had her sign our house and all of her personal belongings and investments over to him as joint tenancy before they were married. See this scumbag lost everything he had in a nasty divorce settlement when he ditched his wife of 46 years 6 months earlier. He married my mother and she died from a brain tumor one year later. He was home free with all of my fathers life savings and the house my dad built with his own two hands. He sold our house and all her assets. Our house that me, my brother and her grandchildren grew up in. We got absolutely nothing from the estate.
I vowed that would never happen to my dear husbands kids. I have no claim to this house, I'm lucky to have a roof over my head. I too went though a nasty divorce and lost my home and everything in it. Thanks all for being so attentive. I can't believe I have gotten myself in this much trouble. And its harder telling my husband how bad it really is

[uptomyears]

I am not really taking any deductions other that the allowances. If you could help,
the income is 3900 a month total from his pension not SS. (union retired at 55) Fed Tax 415 Health ins 389 I don't have health insurance. 2 cars paid for $5k probably total value, Mortgage 944
I don't know what else to put in. I'm just using the basics. What about real estate taxes
I didn't include them 200 mo.

[Tbornetun]

Cya= cover your ass

[uptomyears]

Thanks!

[Tbornetun]

I am not really taking any deductions other that the allowances. If you could help,
the income is 3900 a month total from his pension not SS. (union retired at 55) Fed Tax 415 Health ins 389 I don't have health insurance. 2 cars paid for $5k probably total value, Mortgage 944
I don't know what else to put in. I'm just using the basics. What about real estate taxes
I didn't include them 200 mo.

What he meant was you need to use the household income for your means test. Both yours and your husband's income even if you are filing alone.

[BnkrptcyLwyr]

I am not really taking any deductions other that the allowances. If you could help,
the income is 3900 a month total from his pension not SS. (union retired at 55) Fed Tax 415 Health ins 389 I don't have health insurance. 2 cars paid for $5k probably total value, Mortgage 944
I don't know what else to put in. I'm just using the basics. What about real estate taxes
I didn't include them 200 mo.

Even IF 3900 would put you above the median for where you live, I would bet that you would pass the means test. However, your means test, while negative (I'm sure) would be artificial, because the means test will assume that you're paying on two cars, even if you're not. I ran some basic numbers on what would be typical expenses for two people (take this with a grain of salt since I don't know your exact personal financial expense situation) and I come up with an actual disposable income of around 500-600. What that would mean is that while you pass the means test ... your ACTUAL situation (since you don't have two car payments) means that you likely have some disposable income.

Now, can that be fixed ... sure, go buy a new or used car and have some sort of car payment (provided you can truly afford it. Up charitable contributions. I have a slew of ways of legitimately increasing expenses to get you in a position to do a chapter 7 if you're on the margin of 7 versus 13.

[BnkrptcyLwyr]

BnkrptcyLwyr Could you explain that a little more. What is a cya?
The reason we did the will the way we did was to protect his childhood home from anyone taking it away from his kids. The rightful owners period.
See, Years after the death of my father my mother remarried, her new husband was an AH and convinced her that her children didn't really love her and to protect her assets had her sign our house and all of her personal belongings and investments over to him as joint tenancy before they were married. See this scumbag lost everything he had in a nasty divorce settlement when he ditched his wife of 46 years 6 months earlier. He married my mother and she died from a brain tumor one year later. He was home free with all of my fathers life savings and the house my dad built with his own two hands. He sold our house and all her assets. Our house that me, my brother and her grandchildren grew up in. We got absolutely nothing from the estate.
I vowed that would never happen to my dear husbands kids. I have no claim to this house, I'm lucky to have a roof over my head. I too went though a nasty divorce and lost my home and everything in it. Thanks all for being so attentive. I can't believe I have gotten myself in this much trouble. And its harder telling my husband how bad it really is

Don't fret. From what you have indicated, I am very sure that you are fine. A will does not create a PRESENT interest in the property. It is a CONTINGENT or EXPECTANT interest (which doesn't amount to much).

[uptomyears]

$3900 is our household income before taxes and med insurance. My business hasn't turned a profit since we opened, everything I made was put back in or to pick up the slack in down times. With the economy the way it is, its like beating a dead horse. Nobody is buying what I'm selling. It only took 4 months to be $6k in the hole from overhead. Ah, the thrill of owning your own business. I never took a salary and I don't have any income other than his. BTW, thanks all for your help and input. I've learned a lot tonight.

[Tbornetun]

Household of 2 in PA median income is $51,051. $3900 per month times 12 months = $46,800. You pass the means. There is no need to fill out any of the deduction portions of the means test. You and your husband qualify for Chapter 7.

[uptomyears]

I believe the means income is around 51000 for my area.

[uptomyears]

Its that simple?

[Tbornetun]

Yes, that simple. You just want to make sure that your schedule J doesn't show that you have a bunch of extra money every month.

[uptomyears]

No problem there...after taxes and insurance the auto deposit is 3152. I've been in the hole every month keeping up with all the payments. Not much left for groceries, gifts and such. We mooch dinner off the kids alot. We can't even afford a real haircut.