I am paid up on all my bills. But due to a divorce I will be in trouble when my only asset, a share of the marital home, sells. There is a REceiver who has spent a fortune lining his own pockets but producing no Buyers. Recently, he advised that the home, appraised at $1.5 million, was now a scrape-off worth less than $500,000. He then produced a Buyer, a friend of my ex's, who offered $645,000.
I advised the REceiver that because of my share of debt on the home that this sale would force me into bankruptcy and I was thus going to buy out ex's 40% share at 40% of $645k plus my share of taxes and HELOC. But ex refused to sell to me, even tho he was willing to sell to the Buyer (aka friend). Even tho I explained that if I declared bankruptcy he'd get much less than if he took my buyout offer, ex has several houses and a $700,000 a year doctor's income (his wife is also a doc) so he doesn't care. But for me , this is the only home I have and my share is the only asset. The debt on the home is a small HELOC, attorney fee lien, lien by ex for court awarding him attorney fees (even tho I didn't have any money to hire my own attorney).
So...my questions:
1. If I file, will the trustee figure equity based on the net sale price on the contract less all the loans and liens less homestead exemption OR based on my share of the sale price less my share of the liens and loans less homestead exemption? This is important because if the latter, then there is no equity and the house might be abandoned as an asset.
2. Ex says that he will get half of my homestead exemption. In Colorado, this is $90,000. He hasn't lived in the home since 2000 and has his own primary residence. Can he take half?
3. Alimony is exempt in my state from garnishment. It appears that it is also exempt from the trustee. So if my bank account is rich but all alimony money, can the trustee use it to pay unsecured debt?
4. Is there any way that the trustee might help me with my effort to buy out X's share of the house? The equity loan is current , so if it is considered abandoned, then I'd love to be able to buy out ex's share.
5. Unsecured debt: ex says I owe him $80,000. I have offsets but he keeps ignoring them. I also have 2 investment properties, one on a land installment contract payable on sale of my house, but unsecured. Are these business debts?
I ask because I wonder if I need to take the means test because the debt on these two investments are over half of my unsecured debt.
Yes, I've called manyy bankruptcy attorneys but to date no one has been able to answer these questions definitively. I got a yes that my alimony is exempt from one, but mixed answers as to how the trustee might determine whether there is equity in the house or not. Anyone have any ideas? Or any recs for a good bk attorney in Colorado? I'm concerned that ex will do something to mess up my filing unless I do it soon.
Thanks!
CB
I advised the REceiver that because of my share of debt on the home that this sale would force me into bankruptcy and I was thus going to buy out ex's 40% share at 40% of $645k plus my share of taxes and HELOC. But ex refused to sell to me, even tho he was willing to sell to the Buyer (aka friend). Even tho I explained that if I declared bankruptcy he'd get much less than if he took my buyout offer, ex has several houses and a $700,000 a year doctor's income (his wife is also a doc) so he doesn't care. But for me , this is the only home I have and my share is the only asset. The debt on the home is a small HELOC, attorney fee lien, lien by ex for court awarding him attorney fees (even tho I didn't have any money to hire my own attorney).
So...my questions:
1. If I file, will the trustee figure equity based on the net sale price on the contract less all the loans and liens less homestead exemption OR based on my share of the sale price less my share of the liens and loans less homestead exemption? This is important because if the latter, then there is no equity and the house might be abandoned as an asset.
2. Ex says that he will get half of my homestead exemption. In Colorado, this is $90,000. He hasn't lived in the home since 2000 and has his own primary residence. Can he take half?
3. Alimony is exempt in my state from garnishment. It appears that it is also exempt from the trustee. So if my bank account is rich but all alimony money, can the trustee use it to pay unsecured debt?
4. Is there any way that the trustee might help me with my effort to buy out X's share of the house? The equity loan is current , so if it is considered abandoned, then I'd love to be able to buy out ex's share.
5. Unsecured debt: ex says I owe him $80,000. I have offsets but he keeps ignoring them. I also have 2 investment properties, one on a land installment contract payable on sale of my house, but unsecured. Are these business debts?
I ask because I wonder if I need to take the means test because the debt on these two investments are over half of my unsecured debt.
Yes, I've called manyy bankruptcy attorneys but to date no one has been able to answer these questions definitively. I got a yes that my alimony is exempt from one, but mixed answers as to how the trustee might determine whether there is equity in the house or not. Anyone have any ideas? Or any recs for a good bk attorney in Colorado? I'm concerned that ex will do something to mess up my filing unless I do it soon.
Thanks!
CB
If the sale goes through at $600,000, even with a $90k homestead, I am SOL
Comment