Planning on filing chapter 7

[njtrucker]

I am currently considering filing ch 7 and i have some questions.

The reason I am filing is because I own a business which is probably going to file and there are some personal gurantees out there that I want to get away from. I also have a lot of credit card debt that is related to the business and i will not have the means to pay it off on my own.

I would be filing on my own and not my wife.

Here are some questions I have:

1. My wifes car is in both of our names. We are current on the payments, or at least will be when i file. I am only a week or so behind. Can i reaffirm this debt or take my name off of it and my wife assume it? I want to keep it.

2. Our mortgage is in both of our names and i want to reaffirm this. I have have a home equity line that is only in my name. We want to keep the house, so i want to reaffirm this also. I already have a job lined up if my company does go out and my personal monthly budget allows for the payment of both mortgages, is there any reason why i could not reaffirm these? The equity in the house is negative, like a lot of people in todays market.

3. I am still waiting for my accoutant to finish my taxes, but i expect a rather large return, some of that goes right to the accoutant and i want to put some asside to pay for bankruptcy, if i use the rest to pay off credit cards that are in both of our names and we want to keep, is this a problem?

Thank you for any answers. I am trying to avoid talking to a lawyer for now.

[StartingOver08]

I am currently considering filing ch 7 and i have some questions.

The reason I am filing is because I own a business which is probably going to file and there are some personal gurantees out there that I want to get away from. I also have a lot of credit card debt that is related to the business and i will not have the means to pay it off on my own.

I would be filing on my own and not my wife.

Here are some questions I have:

1. My wifes car is in both of our names. We are current on the payments, or at least will be when i file. I am only a week or so behind. Can i reaffirm this debt or take my name off of it and my wife assume it? I want to keep it.You can reaffirm the car if you want to do so. You can not take your name off the vehicle as it might be considered a transfer prior to BK.

2. Our mortgage is in both of our names and i want to reaffirm this. I have have a home equity line that is only in my name. We want to keep the house, so i want to reaffirm this also. I already have a job lined up if my company does go out and my personal monthly budget allows for the payment of both mortgages, is there any reason why i could not reaffirm these? The equity in the house is negative, like a lot of people in todays market.You can reaffirm the mortgage if you want to, but I certainly would not reaffirm the second. If you are planning to keep the house you can always just pay thru and not reaffirm. Check out the thread where people are trying to negotate a release of the 2nd for 10% of the debt and get a release of lien.

3. I am still waiting for my accoutant to finish my taxes, but i expect a rather large return, some of that goes right to the accoutant and i want to put some asside to pay for bankruptcy, if i use the rest to pay off credit cards that are in both of our names and we want to keep, is this a problem?The payment of your accountant and some credit cards can be considered preferential payments. However, if you have a min of 90 days since the payments it is not likely to be considered preferential.

Thank you for any answers. I am trying to avoid talking to a lawyer for now.

Check out this article on preferential payments: http://www.moranlaw.net/preferences.htm

[njtrucker]

Thanks. I will look into the threads you mentioned on the second. I am just concerned that they can forclose on the second and take the house.

[StartingOver08]

How large is the first and second? Typically the second is smaller and would have to expend greater funds to protect their lesser funds....not very practical.

[njtrucker]

First is 378,000 second is 180,000 and the current value is probably around 490,000, maybe a little more.