Any up/down side filing before or after foreclosure?

[jimbo367]

How would my income be calculated as the a non filing spouse?

----

I spoke to an attorney here yesterday that does a lot of foreclosures he said the average time frame due to the backlog is 900 days.

Not sure I want her to wait that long before filing, maybe she should file sooner let the house pass through, if we could get 24 months I would be happy.

I need to speak to a BK lawyer next to see if there's any liability after the sale and discharge.

My opinion is there is none.

.

[drowning123]

Your opinion is correct. There is no liability after discharge and sale. Wow, almost 3 years. I'll take that. I guess I have 900 days to go. The complaint was already filed, but right after that my loan was sold, and it seems like the process may start over. Who knows. I may be here for 4 years.

[Pandora]

Another thing to consider- Your wife's SS is exempt from collections but if you co-mingle it in your savings account it could lead to it being at risk. If I were you I'd keep it in a separate savings account in her name with no other funds added to it. Also remember to consider that while SS is exempt form the means test it is included on Schedule I. Just things to consider and make sure you are comfortable with. Good luck.

correct on all counts... SS will count when it comes to DMI.

[jimbo367]

Ok my wife makes 35K now, I get 12K SS and 14K salary, assuming she continues to work and not take SS.

How would my income count (not filing) or not count, anyone know?

[drowning123]

Found this on the Net:

While only one spouse may be filing for bankruptcy, the court will consider household income in order to determine if the filing spouse is eligible to file for Chapter 7. In cases where a filing spouse has little disposable income but a non-filing spouse earns substantially more, the income of both will be reported on bankruptcy forms. If the household income is more than the qualifying median income required for filing Chapter 7, the filing spouse may have to file under Chapter 13. In either case, the court will consider what your current monthly income (CMI) is by deducting expenses your spouse pays that are not related to monthly household costs. After determining your CMI, the court will then determine you disposable income.

For example, if your spouse pays $500 on a car loan, $500 will be deducted from your total costs in order to determine your monthly disposable income.

[jimbo367]

Ok, I just spoke to very savvy BK and foreclosure law firm.

Do not file a 7 now, wait until after the sale, otherwise the foreclosure will show after the sale diminishing the clear credit report after discharge.

If I need to buy something I can do it on my credit or with all the money we put aside buy what what ever with cash.

Here on LI it is an easy 900 days with a good defense it go beyond that, perhaps 4 or 5 years.

So at 3 years we can put aside about 100K.

.

[screentest]

Ok, I just spoke to very savvy BK and foreclosure law firm.

Do not file a 7 now, wait until after the sale, otherwise the foreclosure will show after the sale diminishing the clear credit report after discharge.

If I need to buy something I can do it on my credit or with all the money we put aside buy what what ever with cash.

Here on LI it is an easy 900 days with a good defense it go beyond that, perhaps 4 or 5 years.

So at 3 years we can put aside about 100K.

.

Jimbo,

Just a quickie on this. It has been my experience, as well as many others here, your attorney is incorrect on this. I haven't seen this mentioned here yet; however; if the mortgage is included in the BK, no foreclosure will show up on your credit report. If you allow the house to go foreclosure first and then file Bk you get both the FC and the BK on your report. The credit score hit may be negligible but you are going to have two public records on file instead on just one.

I have dealt with 2 chapter 7s (mine and in-laws) and two homes foreclosed (included in BK)in the last 2 years and we have NO FC on any credit reports. Both foreclosures occurred well after the BK discharges. Something for you to consider.

ST

[jimbo367]

Well that's interesting, I'm going to talk to him again next week, I ask again.

I'll also ask another 1 or 2 to be sure.

tks ST