Can I put my wife on Title to claim the credit

[StartingOver08]

Ando, this is a numbers issue.

If you sell the house for $170k and take the proceeds and negotiate with each creditor for 30% of outstanding debt (or less) you will have 1099 income to deal with for the forgiven debt. However, your tax bracket is not going to be 70%...so you will have left over funds. Work out what your expenses will be assuming you have to pay the tax on X% saved. It still is better then giving it all to the Trustee!

[ando]

Thank you Starting Over , I will definitely look into that . Is that like $2500 for every $10,000 forgiven debt? Don't forget that I also have $38000 mortgage left. Flip tax will be $17000, misc tax,lawyer fees for closing , lawyer fees for negotiating the deal with creditors . After all that I don't think I have any money left , so why don't I just file 7 and get my $50000 exemption ,this way I don't have to deal with taxes on the forgiven debt since it will be wiped out, and I can walk out with $50000 in my pocket from the whole deal . I am just speculating ,I can be wrong , can you convince me not to file 7?

[whipster1]

If you are filing jointly, the equity in the house would be a non-issue whether she is on the title or not. If the question ever came up she could assert a beneficial interest in the equity due to you being married to her.

[ando]

If you are filing jointly, the equity in the house would be a non-issue whether she is on the title or not. If the question ever came up she could assert a beneficial interest in the equity due to you being married to her.

Ahuh, Now it is becoming interesting, my idiot lawyer told me since she was not on the title I would only get single exemption , he did not explain whether if the two of us file that I would get the full exemption.

[shabam]

well , here in NY $30 grand will buy you a hut, or a hot dog cart , or a nice truck to sleep in , but what if the weather gets cold? lol

What would buy with a BK under your name?