Question about Non-Filing Spouse

[jonance]

Hi,

I will be filing a non-consumer chapter 7 in the coming months (probably 4-6). My wife has literally 0 debt (i am on our home mortgage), although she obviously helps pay the bills. All the debts i'll be discharging are biz related (non-consumer). My question is that my attorney is trying to lower the DMI in schedules I & J. She just bought a car with a note that will help. My question is if we need some more...can she get a loan with a monthly payment? I know it would be bad news if I did, but since she isn't filing, if we needed to deduct $200 more a month can she get a lien our paid off vehicle in her name? Or just a straight loan? It doens't seem they should really be able to question that too much since she isn't filing. Any opinions?

[aljohnson007]

Your wife has zero debt but just bought a car with a note????

[MC9199]

I'm not sure if this applies in your case, but what my atty did regarding my non-filing wife was he asked me what she contributes to household expenses -- items 3-11 on schedule J.

If she contributes say $100 to food, $100 to clothing per month, or some other distribution of the $200 amongst items 3-11 on schedule J, maybe it could be taken care of that way, rather than adding loan payments.

[jonance]

Well she "had" zero debt, until yesterday,when she signed the closing papers. So that will be listed as a monthly expense. My question is really based around whether anything "she" does before "I" file could or even would be looked at. If she wants to get a loan to make an investment, couldn't she do that without question since she isn't filing?

The figures i've been giving on I & J are combined household expenses, mainly b/c it's easier. We make about the same $$.

[AngelinaCat]

I really hate to see either of you take on new debt, especially just to make the 'numbers work'. And taking out a loan to make investments is just plain foolish, in my opinion.

She may NOT be filing, but since you are, that means the entire household is in financial trouble. Neither she nor you have any idea what this economy will bring. Unless her job--if she is working--is very secure, she could end up being laid off at the end of the year. Then how will these new debts be repaid?

Please think long and hard about this. Good luck!

[jonance]

Thanks Agenlina. We are actually in a fortunate position as far as that goes. We both make good money, she's a teacher (very secure) and I work for my family business. Plus I do website design on the side for additional income. The ONLY reason I'm filing is to get rid of 5 investment properties, and a business line of credit. I am letting the properties go into foreclosure and don't want deficiency threats. So basically, in my case, having her take on new debt to heavily increase the chances my non-consumer chapter 7 isn't converted to a 13 is worth it to me. After my BK goes through i intend to pay everything off early...

I know we're lucky to have help from family and stable jobs in this economy, but the board has been a great help to me so far. It's good there are folks from all walks of life on here.

So anyhow, does anyone know if debt my wife takes on can or will be questioned, or will they even know when it was acquired? Since it is a payment she must make, do they get detail of it or does it just go in a lump of her obligations and contributions? Again, it seems if a non-filing spouse up and decided to get a BMW in her name and a note, she has that right...she isn't the bankrupt one. Extreme example...but is that right?

[danaf]

Have you asked your attorney? I think it does not look good if she is taking additional debt on to lower your schedules, even if she isn't filing. My husband didn't file and I had to include his assets in my exemption schedules but I am in a c. prop. state.

[jonance]

No community property here in KY.