Hello. Long time lurker here, finally coming out of the woodwork to post. I apologize if these issues have been previously covered. I have read thousands of posts but some things are still not clear to me. A little about my situation:
I am a single mother living in Illinois, family size is 3, below median income and have a car loan (I intend to keep my car) and credit card debt of approximately $25,000. I know $25k isn't a lot to file bankruptcy on, but being a recently divorced single mom with full custody and paying over $1000 per month in childcare really leaves me drowning in bills every month.
I spoke with an attorney today (a very well trusted one), and was told that I will not be able to file a Chapter 7 because of wording in my divorce decree. In the decree, my ex and I both have our vehicles that were jointly financed. We were both supposed to get the other's name off - I did, he has not. The attorney told me that this will not be an issue. My ex will have to assume full responsibility for the loan, and will have no legal recourse against me. She did say, however, that the wording of my decree (that each party takes 50% of marital debt - it does not list amounts - and holds the other harmless) will prevent me from filing a 7. The credit card debt is in my name only. These are not, and never were, joint accounts. Most of the debt was incurred while married, but some since the divorce. Does this sound correct?
The attorney told me I'd be looking at filing Chapter 13. (Maybe this question should be posted over on that board, sorry.) How does a Chapter 13 work when you have no money to fund one? I rent, so I'm not looking to keep a house. I have my one car, the payment is very manageable, I am not upside down but have no equity either, and have a good rate on the loan (5%) and a 100k mile warranty. If there is no money left (negative monthly disposable income), can they really force you into a Chapter 13 simply because of wording in a divorce decree? If so, what type of payment am I looking at every month?
I know I should speak with a few other attorneys, and I do plan to do so in the next week as well. I have an initial appointment with this attorney next Thursday to go over finances, bills, etc.
Thank you in advance for reading this long post and for any insight or advice you may have.
I am a single mother living in Illinois, family size is 3, below median income and have a car loan (I intend to keep my car) and credit card debt of approximately $25,000. I know $25k isn't a lot to file bankruptcy on, but being a recently divorced single mom with full custody and paying over $1000 per month in childcare really leaves me drowning in bills every month.
I spoke with an attorney today (a very well trusted one), and was told that I will not be able to file a Chapter 7 because of wording in my divorce decree. In the decree, my ex and I both have our vehicles that were jointly financed. We were both supposed to get the other's name off - I did, he has not. The attorney told me that this will not be an issue. My ex will have to assume full responsibility for the loan, and will have no legal recourse against me. She did say, however, that the wording of my decree (that each party takes 50% of marital debt - it does not list amounts - and holds the other harmless) will prevent me from filing a 7. The credit card debt is in my name only. These are not, and never were, joint accounts. Most of the debt was incurred while married, but some since the divorce. Does this sound correct?
The attorney told me I'd be looking at filing Chapter 13. (Maybe this question should be posted over on that board, sorry.) How does a Chapter 13 work when you have no money to fund one? I rent, so I'm not looking to keep a house. I have my one car, the payment is very manageable, I am not upside down but have no equity either, and have a good rate on the loan (5%) and a 100k mile warranty. If there is no money left (negative monthly disposable income), can they really force you into a Chapter 13 simply because of wording in a divorce decree? If so, what type of payment am I looking at every month?
I know I should speak with a few other attorneys, and I do plan to do so in the next week as well. I have an initial appointment with this attorney next Thursday to go over finances, bills, etc.
Thank you in advance for reading this long post and for any insight or advice you may have.
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