passing the Means test and Divorce Decree Require to pay Loan

[chart2]

I make 2* the Median income and am divorced. One attorney based on my debts and alimony stated I technically pass the means test, but she reccomends 13 as the Trutee has been kicking back Ch 7's. That said I have a clause in my divorce decree that states I must keep the unobtainable boat loan current or the x can take me back to court. So the questions is two fold

1) If I qualify for a 7, wipe it all out including boat loan she takes me back to court and gets a judgement on the boat loan deficit of 40k? So now I have a judgement and have already filed BK.

2) If I do a 13 - then does me being in BK prevent family court for ordering a judgement to pay the boat loan now that I've defaulted?

Thank you in advance ...

[Charlie777]

If you technically pass, you pass. It's a very technical test. Yes, you risk having to fight the Trustee but if youy pass, you pass.

Debts included in the divorce decree must be listed and paid, not discharged. My attorney advised they are non-dischargeable, as was my alimony.

[chart2]

Well, its a moot point as I re-ran myself through the means test .. failed... so I'll be doing a 13 ...

[ValleYum]

Go see some more BK attorneys. You have a unique situation and are going to have to do some work to find the right attorney for you.

What kind of a judgement could your ex get?

Doesn't it make more sense to: (1) Lose the boat; (2) Get the judgement; (3) File a BK ?

[chart2]

Good point don't know... the divorce degree states ...

""The 2007 Cruisers 310 Yacht, subject to the encumbrance theron and he shall indemnify and hold wife harmless from liability therto. Husband shall sell or refinance said boat in his own name as soon as he is able to do so. In the event the Husband falls behind on any payments related to the said boat for which wife may be liable, or if he fails to keep the boat fully insured, Wife may move to the court to appoint a receiver and sell the property. Husband shall reimburse wife for attorney fees and costs incurred as a result of husbands failure remain current with his obligations related to the boat. Upon responsible request by wife or her representative, husband shall provide verification that the ordered insurance coverage is in place" (1000 due this month)"

[ValleYum]

Ugh...

Hopefully one of the wizards on here will see this and have an answer for you.

Good luck!!

[tcreegan]

Hi chart2,

From what I have seen around here, once you combine divorce + BK, you need a good lawyer....

That said, the div.dec. part that you listed seems to indicate your ex doesn't have a $$ interest in the boat, the purpose is to protect her from any liability if you default. Can we assume both names are on the loan?

Problem w/ a Ch 7 BK is that your liability goes away, hers does not. If the boat lender goes after her, according to the div.dec. she can turn around and sue you + legal fees.

But....you are going into Ch 13 which means a repayment plan, not liquidation. Could be the boat gets paid off in the plan...?

Or...simply stay in touch with the boat lender and tell them you will be paying in full regardless of the BK. As long as your $$ keeps rolling in, they won't need to go after your ex.

....wow....whatta bunch of blathering....see why you need a good lawyer!!

Tom in Colo

[chart2]

You're right I need a good one. Its hard to find one that knows both Family and BK. She's on the loan, I just spoke to another (exp in fam and bk) one and they stated that being that there's the statement "he shall indemnify and hold wife harmless from liability" I shouldn't see a separate judgement if I go 13 and the boat gets treated as a "Special" (ie gets payback priority.)

I've come to terms on what needs to be done, and will do the 13 - Now its just a matter of setting up a good budget. It will be weird I went from the x managing my money to the feds ... not sure which is worse! lol

Thank you all for replies.

[tcreegan]

Good luck to you chart2,

You are more than welcome here, but you can also go over to the Ch 13 forum. Might get some more insight than us Ch 7 types have....

Tom in Colo