Husband filing BK, not including Wife. Need asset and bank account advice.

[thabeast]

I'm filing BK at some point in the future due to bad real estate investments. All of my real estate is in my name soley. Even our current house that we are living in is in my name only. Once these multiple properties start to foreclose, I'm sure at some point one of the banks will come after me for the difference and I'll be forced to file BK.

Up until this month, all of the income was going into a bank account that had my name only on it. I would then transfer some money out of this account and into a joint account that my Wife and I shared. I've since been told that I should be making all deposits into a joint account since these funds would be protected under BK. Is this true?

Lastly, I recently bought new furniture and appliances for our home... about 3-4 months ago. I put them all on interest free terms with minimum payments. I've been making all minimum payments but all have large balances currently. All of these assests were purchased with accounts in my name only. My question is are these assests only considered mine, or are they both mine and my Wife's since they are in our home? I guess my point is, just because it was purchased under a card with only my name, doesn't mean it was just for me. I was for the house, therefor, it was for the family (or a joint ownership between my Wife and I). I understand this arguement may not apply, so this is why I'm asking.

If these items are not joint assets, is there a way to make them joint?

I don't want to bend any rules by asking these questions, but I do need to protect my family. My bad investments are now affecting my Wife and kids, and all I want to do is make sure I legally do everything I can to protect our assets as a family.

Any help, advice, and suggestions are much appreciated.

[AngelinaCat]

Depending on how long you and your family have lived in Florida, your home should be protected by the Homestead Exemption. In fact, the deed and mortgage paperwork should have both of your names on it. Some years ago, I was re-financing a mortgage that I had on a piece of property that I had had a home built on. In the meantime, my husband and I had married, and the attorney insisted that my 'Hub had to sign those papers too, because it was his home as well, even though the property had come through my family to me.

Here is a link to some articles about the Homestead Exemption.

http://www.ccappraiser.com/exemption.asp

Good wishes to you, and welcome to the forum.

[thabeast]

Depending on how long you and your family have lived in Florida, your home should be protected by the Homestead Exemption. In fact, the deed and mortgage paperwork should have both of your names on it. Some years ago, I was re-financing a mortgage that I had on a piece of property that I had had a home built on. In the meantime, my husband and I had married, and the attorney insisted that my 'Hub had to sign those papers too, because it was his home as well, even though the property had come through my family to me.

Here is a link to some articles about the Homestead Exemption.


Good wishes to you, and welcome to the forum.

Yes, she is on the deed but not the mortgage. I'm very comfortable that the house is protected under the Homestead Exemption as you have suggested. My concerns are defenitely with other assets mentioned in the above post. Thanks for your advice.

[AngelinaCat]

Here is an article I found on a Florida Homestead Exemption bankruptcy blog. I don't know what district in Florida you fall in, but this is in the Florida Middle District where 'Hub and I live, and in particular, the Jacksonville courts, where our bk was filed:

"The Florida Homestead Exemption in A Chapter 7 Bankruptcy

When filing a Chapter 7 Bankruptcy in the Middle District of Florida, debtors are entitled to several exemptions that allow them to keep assets out of the reach of the trustee. One of those exemptions is the Homestead exemption under Article X, Section 4(a) of the Florida Constitution which allows debtors to exempt the full amount of their homestead property from the bankruptcy estate. Under one of the newer additions to the bankruptcy law, referred to as the “wildcard exemption”, debtors are able to exempt up to $4,000 of personal property from the bankruptcy estate.

The relationship of these two exemptions to each other is important for debtors to understand. The reason is that if you use one of them you are not entitled to use the other at the same time. For instance, if you own your home and it is your homestead you must claim the homestead exemption when you file for a Chapter 7 bankruptcy in the Middle District of Florida if you wish to exempt your property from the bankruptcy estate and creditors. To that end, you will only be entitled to $1,000 in personal property exemptions under the Florida Constitution Article X, Section 4(b). However, if you are behind on your home mortgage, have no hope of reinstating your mortgage or do not wish to, you can surrender your house, discharge your mortgage, and take advantage of the “wildcard exemption” to protect up to $4,000 of your personal property, including a vehicle.

An important aspect of this exemption interplay to remember in the Middle District of Florida, Jacksonville Division, is that the Court has decided once you claim the Homestead Exemption you cannot amend your petition prior to the discharge and claim the “wildcard exemption”. You must make up your mind prior to filing the petition which exemption you wish to use. This is where the advice of a Jacksonville Bankruptcy Attorney can prove invaluable. "

[tcreegan]

Hello thabeast!

I've since been told that I should be making all deposits into a joint account since these funds would be protected under BK. Is this true?

The need to be protected in both accts, so it doesn't make much difference which acct the funds are in. They both become your cash assets in your BK

They become joint the day you brought them into the house....but again it probably doesn't matter. Since you bought them, the accts are in your BK, and you need to get them discharged. With these types of purchases the water gets a little muddy; difference between PMSI and a secured creditor, did they perfect the lien, is it really secured, does your BK per.prop exemption make a difference, etc.

BUT, one thing is almost certain...they will at some point in the BK try to put the squeeze on you to settle up with some cash. They don't really want to take back used furniture, its worth a fraction of new, and they usually don't sell used anyhow. So they tried to get you to cough up some cash. Don't. Call their bluff.

Good luck with everything, keep reading the posts and ask questions, esp to ACat and other Floridians...

Tom in Colo

[thabeast]

Hello thabeast!

I've since been told that I should be making all deposits into a joint account since these funds would be protected under BK. Is this true?

The need to be protected in both accts, so it doesn't make much difference which acct the funds are in. They both become your cash assets in your BK

They become joint the day you brought them into the house....but again it probably doesn't matter. Since you bought them, the accts are in your BK, and you need to get them discharged. With these types of purchases the water gets a little muddy; difference between PMSI and a secured creditor, did they perfect the lien, is it really secured, does your BK per.prop exemption make a difference, etc.


Tom in Colo

Well, the remaining cash left in my accounts is going to be used to pay remaining bills until the balance reaches zero. All new monies coming in is going into our joint account.

So just to clarify, are you saying that the deposits into the joint account will still be considered my cash? Meaning, at filing, the balance in the joint accounts will be siezed in the BK?

Also, you are under the assumption that this furniture and appliances that were purchased are now joint. Eventhough it was bought under my name only on an unsecured credit line, these items are now both ours. Did I get what you were saying correct?

Thanks Tom and I will surely be reading through post and asking many more questions in the future.

[tcreegan]

Hi again thabeast,

deposits into the joint account will still be considered my cash? ...just half.

Did I get what you were saying correct? yup...she has a 1/2 interest in the household property.

large balances What is large? This might need to be 6 months out to avoid an objection...

Best to you, keep us posted

Tom in Colo

[thabeast]

i may have misundestood some previous information or maybe i did undestand it and just need some more clarification. but it's my understand, as you stated, that the funds in the bank account are 1/2 mine and 1/2 hers, but because she was attached to it, NONE of the money could be taken in BK.

this is taking into account that she's not filing BK, only me.

is this incorrect or corrrect? thanks again.

[tcreegan]

Hi again thabeast,

the funds in the bank account are 1/2 mine and 1/2 hers, but because she was attached to it, NONE of the money could be taken in BK

This sounds like it would work in a community property state but FA is not. Need someone to chime in on how joint cash accts are handled in a BK when only one spouse files. Hopefully one of the lawyer types around here can chime in.......

Tom in Colo