Need some information before filing for BK7

[sg1858]

I am planning to file for BK7. My Bk would be a non assets case. I am married for about 7 years now and I am going to file for an individual BK7. My wife owned the house before we got married. She has been diagnosed with a serious medical condition and has not worked for 3 years now. That is the reason for my BK. I have around $75000K in consumers credit card and loans debit. We do not have any credit accounts together. Here are some questions. I live in NJ and filing Pro Se.

1, Does my filing the BK7 would have any effect on my wife or the house she owns?

2, I have been paying for the mortgage and all the utilities since my wife became ill, does that have any effect on my wife.

3, How do I calculate my exemptions when it comes to the household stuff? I.E furniture, TV, stereo, etc.

Your help is greatly appreciated.

[LadyInTheRed]

Welcome to the BKforum. I'll try to answer your questions, but first you have to read through my pro-se filer warnings.

Before you file pro se, be sure to take advantage of a few free consultations with local bankruptcy attorneys. They can answer these kinds of questions and you don't need to tell them you plan to file pro se. Also, buy a book to guide you through your filing. Many highly recommend Nolo's Chap 7 book. Check your local court's website for information for prose filers. Some courts have excellent guides, others will have very little information. Also, if you haven't found it yet, look for the prose forum on this board.

You'll need to familiarize yourself with the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure and your local bankruptcy court rules. If you aren't comfortable reading and understanding the laws and rules, reconsider filing pro-se. You will be acting as your own attorney and will be expected to be knowledgeable enough to do so.

Since New Jersey is not a community property state, your BK should not effect your wife's assets or credit rating if you have no joint debts or assets. Depending on your state laws, the fact that you are making mortgage payments could mean you have some interest in your wife's home. Ask an experienced BK attorney.

New Jersey bankruptcy exemptions are very stingy. Fortunately, you have an option of using federal exemptions. For a comparison of NJ exemptions to federal exemptions go to http://www.legalconsumer.com/bankrup...=NJ#exemptions

From that page, The federal exemptions for personal property are:

# Animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments to $550 per item, $11,525 total
11 U.S.C. § 522 (d)(3)

# Jewelry to $1,450
11 U.S.C. § 522 (d)(4)

# Motor vehicle to $3,450
11 U.S.C. § 522 (d)(2)

# $1,150 of any property
11 U.S.C. § 522 (d)(5)

It doesn't sound like you will need to use the homestead exemption (or may need just a little if you do have an interest in the home), so you also get the following federal "wildcard" exemption:


# Up to $10,825 of unused homestead exemption amount, for any property.
11 U.S.C. � 522 (d)(5)

Estimate garage sale value for your assets.

[AngelinaCat]

Welcome to the forum, and we are sorry to read of your wife's illness. Here is a link to the exemptions allowed in New Jersey.

http://www.njchapter13.com/njbankruptcy.asp

You also have the option of using Federal exemptions, if they are better than your state's. You cannot mix and match, though. You will either use your state's or the Federal exemptions.

When you are valuing things in your home, use 'yard sale' prices. And you can categorize. i.e.. 'Assorted pots and pans'= $10.00. Our attorney told us, "you don't have antiques, you have old, used, hand-me-down furniture. Likewise, jewelry is 'costume jewelry'. If you have a really nice piece, then take it to a couple of pawn shops and find out what they would give you if you were to sell it to them. Ditto with firearms.

That gives you a start on your thinking and planning. We have several members from New Jersey who will be able to give you more specific suggestions.

[btbeme]

First, I'll make some assumptions...

1. You name isn't on the deed to the home
2. You understand that medical bills in her name will not be discharged
3. You have nothing of "real value" to lose, such as fine jewelry, a sailboat, or 10,000 shares of AAPL

If the above is true, you will likely fly through BK. However, as above and elsewhere, I also recommend that you see a handful of local BK attorneys to make sure there aren't any "gotchas" in your situation. Paying someone else's mortgage, for example, may constitute a gift, or partial ownership, etc in the Trustee's eyes. That doesn't mean that you would lose that asset, but it could mean some legal wrangling which a pro se filer wouldn't want to attempt. I am sure that you aren't the first person in NJ to be in this exact situation, and a good experienced attorney would be able to tell you how to wrap your situation correctly. If nothing else, it might mean waiting a few months to file.