BK question...im filing, but wife isnt

[Mrogdog078]

We live in Tx and have been contemplating filing BK for about 4 months. We were assuming we would have to file CH13, but I lost my job last week. Now we no way of paying debts and no extra income. I figure this would make it a CH7. I have about $60,000 in unsecured debts, $80k in SL, a mortgage, 2 cars and one toy jeep?

My question is that all the debt is in my name, not my wife's. She only has a few student loans, and one student loan that I cosigned on.

Can I file BK and not my wife? WE are wanting to keep her credit from being destroyed.

How long since loosing my job, should I wait to file? I know that the BK court looks back 6 months, but that was when I had a job. What type of proof do they need to determine I have no job? I have filed for UnEmply.

Any help on this topic?

[AngelinaCatHub]

If you get your unemployment, that is proof. Also you should have gotten a "pink slip" of some kind. The look back period is six months but most likely with a notation on your forms, and in this economy, you would be over median, but allowed to continue. I am guessing at this as this is what happened to us. We had no problem. Later we became an asset case though but that was not income but property. 'Hub


EDIT: P.S. since you are new, I suggest the Nolo Press book on C7. nolopress.com at about 17 bucks pdf download. Very good.

[bigsapper]

It might be worthwhile to put together a spreadsheet that projects monthly income & expenses for 6 months into the future and then averages each month.

You might also consider initially filing a 13 than converting to a 7 after the 13 is confirmed.

[Walter]

According to NOLO, Texas is a 'community property state,' so what's yours is yours and what's hers is yours, too, if TX is, in fact, a 'community property state.'

...so this would be important when considering assets/income/etc. It seems you can file alone and not required to file jointly, but keep in mind that everything would be considered part of the 'bankruptcy estate.'

I second the NOLO book...godsend and helping me prepare the paperwork now.

[backtoschool]

Your income will figure into the six month look back period for the means test, but should not figure into your projected income and expenses since, you are now unemployed.

Waiting will make it easier to pass the means test. Some trustees are conservative and only want to go by proven income numbers. There is probably not much downside to waiting unless you are immediately being threatened with legal action by one of your creditors.

Texas is a community property state, so all your assets and liabilities will become part of your bankruptcy estate whether your wife files or not.

Student loans are not dischargeable in bankruptcy.

[Mrogdog078]

Would me filing the BK, and not my wife affect her credit score?
None of the unsecured debt is in her name, just the student loans which we are paying on time. Her credit score just got above 650 and we dont want to affect it negatively.

Also how do the exemptions vary if I am the only one filing BK? Would I be considered a household of 1 or 3 since I have a wife and kid. We have a paid for truck, a paying for car, and a paid for off road vehicle (a jeep that is offroad only and hasn't been registered in 5 years). I want to keep the jeep as it is only worth about $1500 in its present condition, so I could sell it before the BK. WE plan on filing in the next 6 months or so.

[backtoschool]

Would me filing the BK, and not my wife affect her credit score?
None of the unsecured debt is in her name, just the student loans which we are paying on time. Her credit score just got above 650 and we dont want to affect it negatively.

Also how do the exemptions vary if I am the only one filing BK? Would I be considered a household of 1 or 3 since I have a wife and kid. We have a paid for truck, a paying for car, and a paid for off road vehicle (a jeep that is offroad only and hasn't been registered in 5 years). I want to keep the jeep as it is only worth about $1500 in its present condition, so I could sell it before the BK. WE plan on filing in the next 6 months or so.

Are you foreclosing on your house? If her name is on the title to car that you are still paying on, that could show up on her reports.

The way the exemptions will work is that her income and her expenses will be included in your means test and expense schedule. If she only contributes a portion of her income to household expenses then you might only have to include a portion of it, but be advised that if you don't include all of her income in your means test and expense schedules then that is a red flag for the trustee. Basically whatever exemptions you cover on your 1040 tax return will be the exemptions you will claim for bankruptcy, as bankruptcy uses the irs standards.

The jeep and the truck will be assets and will have to be covered with exemptions.