Someone's been down this road...clue me in!

[badfishy]

My wife and I have decided we need to split up, but we're broke. We pretty sure we're going to file (not sure what chapter yet), but she needs to move out NOW. We're current on absolutely everything (mortgage, car, CCs, etc), but if she splits the house of cards is coming down. What do we do? She wants to use what available credit she has to furnish her new place right now (we don't have a dime to spare), but I'm reading that it will basically postpone the BK...somebody chime in please.

[badfishy]

by the way, we can't even afford "the new place". Where is all this money supposed to come from? AAARRRGGHHH.

[kenshirley]

If she spends money on a CC to furnish the new place you may get challenged I am thinking for the large purchases on a CC just before filing.
Check with an attorney.

[keepmine]

Since bk is the endgame, STop paying all debt you wish to discharge and use that money for living expenses.

Since she's about to be the ex, I'd cut her loose and let her do what what she wants. Nothing says you have to file a joint bk. Take care of your business first. File an individual bk when the timing is right for you and let her handle her bk.

[badfishy]

So, what if the accounts she wants to use are joint? Can she use the money we don't spend on the credit accounts to rent a place/purchase furniture...or is that a no-no? If she uses accounts that are in her name, what's the worse that will happen?

[kenshirley]

Those accounts are just that, joint. And you have as much obligation to pay them as she does. And remember if she is going to be an ex that you cover your butt in the BK.
Don't count on her to cover you.
I would quit worrying about her as she is past tense and cover yourself.

[keepmine]

Can she use the money we don't spend on the credit accounts to rent a place/purchase furniture...or is that a no-no

It's your money and you can do with it as you please. Furnishing a apt. is no going to cause any problems with a bk.

[LuciluS]

Here's another scenario. Just because it might be stated in your divorce decree, she is responsible for X joint credit card means Nothing to the Credit Card Company.

On the joint CC accounts, you need to request a form to take her name off of the account.That form will have to be signed by both of you and mail it Return Receipt Requested and make sure the CC company follows through with your request.

Or better yet, Call and request the joint accounts to be closed and make a note of date, time and who you talked to.

We thought our request back in 2005 to remove my ex from a credit card had been done. Nope and by the time, I realized it, mine and my husband's credit had tanked & they refused to take his name off. His wife paid the CC and I will pay her back once our bankruptcy is discharged.

Charges to a credit card made within 90 days of filing bankruptcy may cause a CC company to object those charges in Bankruptcy.

Luci

[badfishy]

so, when do we stop paying our bills so we can actually bankroll some money to pull this off. My dad is telling me that as soon as I quit paying we need to be ready to file? When do we close the joint bank accounts and open individual ones...how does all this mess with the bk?

[LuciluS]

We haven't paid our Credit Cards since the middle of Sept. 08 when we met with our Bankruptcy Attorney. There was one credit card I had made a balance transfer in 8/08 to get a lower interest rate. Attorney told me to pay the minimum plus $25-$50 extra for 3 months and then stop paying on that specific credit card.

We haven't filed Bankruptcy Yet, as I was receiving some monies from my ex-husband's retirement account and it would have put us over the Median for our State to be able to file Chapter 7 which our Attorney didn't catch or we would have already been in a Chapter 13. I received the last of the monies in Feb. So we will be filing on 9/30/09 (small town, Attorney files all bankruptcies on last date of the month) using our Income from Mar-Aug. 09.

The phone calls were a bit nuisance at the beginning; however, I was able to give them our Attorney's name, address & phone #. We have received 5-6 collection agency mailings. Also, the Collection Agencies are calling. Attorney said just don't answer the telephone if you don't know who is calling. Some of left messages, but we don't return the calls. Praying we don't get served; however, if we do, our Attorney said he could file something in the Courts to delay any Proceedings until we get our Bankruptcy filed.

There are record numbers of people filing Bankruptcy in the U.S. & CC Companies are aware of this. They don't immediately start wage garnishments are judicial proceedings to raid bank accounts or sue one for not paying their Credit Cards.


I would quit charging and stop paying the CCs now. If you want to help your wife in the moving process, use the monies you would have been paying on the CCs to help in the move.

I don't believe you will be able to find an Attorney who will file your divorce & bankruptcy. My ex husband had an Attorney when he filed for divorce from me. I did not use an Attorney as I knew what I was allowed to receive in the Divorce. Although he is my Ex, he is still the Father of our son & Grandfather to our 3 precious granchildren.

I would concentrate on getting your Divorce finalized, but also call some Bankruptcy Attorneys who give free consultations. They may be able to assist you in your Divorce....who knows.

Again, I would close the joint accounts as soon as possible and get individual accounts while you still have good credit scores.

Good Luck

Luci

[OregonMom]

I would close the account she wants to use, get a divorce asap. A bankruptcy due to divorce looks better. At my mom's 341 meeting a couple was being all fishy about them getting a divorce and the trustee said he wouldn't discharge them until he saw divorce papers. So talk to a lawyer and find out what you should do first. Stop paying the debt you don't want, we went a year not paying before we filed since we needed to save up for the attorney. Nothing bad happened. Good luck!

[Floridagail]

Stop paying and stop using cc. Get a divorce going. It takes a long time for cc to sue you , I had cc and stop paying june 2006, I got sued Aug 2008 by one. all rest just wrote off debt. I filed Jan 2009 this year due to getting married. You have plenty of time to file.

[JoeBankrupt33]

If you charge furniture, make some payments, then wait before filing bankruptcy. You have time and you can stop paying everything long before you file BK, just be prepared for a phone that doesn't stop ringing.

You can be separated and maintain separate households and still file BK together. That is what we did. If you state that you are separated, then you are also affirming that you are not intending to get back together and that you are not separated to skirt some bankruptcy laws. In our case, it was a permanent split and we both had separate apt leases for nearly a year before filing BK. The trustee never questioned our intentions. If you both plan on filing BK, then it might be wise to do it together; that way, you will not need to deal with the division of debts nor will you become responsible for debts during the divorce.