AZ - estranged H's massive debt
Hello all. I've done a little searching here and a lot online and just wondered if anyone had any information\experience to share until I can consult a professional.
Scenario: My H moved out 2/07, we do not yet have a legal separation nor divorce and have been married for 9 years. We live in Arizona (community property state). I maintain our home, its mortgage and a 2nd mortgage (which has gone to pay off some of his debt twice).
He has recently stated that he needs to file bankruptcy. He changed jobs last year so I do not know his exact income but if it is similar to what it was it is about 1/3 of mine and from what he recounts his CC debt as it is about 3 times my CC debt. Had I known he was going to get into that much debt I would have been a little smarter and filed for divorce long ago.
The person he consulted with told him that I have to file as well so that his creditors do not come after me. Now looking at the community property information that seems pretty accurate that his creditors can come after me for debt I never signed for because of the 'community'. I really really do not want to file bankruptcy as I am fortunate enough to be able to work at paying off the debts that I incurred and do not want a BK on my record and have to start all over. Since he decided to skip out I have been able to pay off more of my debt than ever. I mean if we try and do a joint file would it even look like someone who needs a bankruptcy when the two incomes and debts are added together??
What I have been wracking my brains about until I have an opportunity to consult a professional is do I have any way at all to protect myself from his creditors coming after me? We aren't divorced yet so if we stay legally married am I protected in the 'community' even if I don't file? If we divorce they can still come after me since we were legally married when he wracked up all that debt right? Can I transmute my assets in to separate assets or can they take those too for his debt?
I have no idea if he wants to file Chapter 7 or Chapter 13. Together I don't think we would pass the means test for 7 but alone he might. If he did file 13 then would that give me until his payment period is done before his creditor can come after me? Needless to say (yet I'll say it anyways haha) I am seething mad right now. I currently only drive a motor scooter but had wanted to buy a car soon and when the housing market was better maybe ever get rid of our house and move. If I have to BK then that idea may be shot and I have to spend all that time on paperwork to file for something that I personally don't need (which makes me feel like abusing the system for some reason).
There was a thread I saw of someone married who filed individually but no indication if the creditors ever did go after the spouse.
Scenario: My H moved out 2/07, we do not yet have a legal separation nor divorce and have been married for 9 years. We live in Arizona (community property state). I maintain our home, its mortgage and a 2nd mortgage (which has gone to pay off some of his debt twice).
He has recently stated that he needs to file bankruptcy. He changed jobs last year so I do not know his exact income but if it is similar to what it was it is about 1/3 of mine and from what he recounts his CC debt as it is about 3 times my CC debt. Had I known he was going to get into that much debt I would have been a little smarter and filed for divorce long ago.
The person he consulted with told him that I have to file as well so that his creditors do not come after me. Now looking at the community property information that seems pretty accurate that his creditors can come after me for debt I never signed for because of the 'community'. I really really do not want to file bankruptcy as I am fortunate enough to be able to work at paying off the debts that I incurred and do not want a BK on my record and have to start all over. Since he decided to skip out I have been able to pay off more of my debt than ever. I mean if we try and do a joint file would it even look like someone who needs a bankruptcy when the two incomes and debts are added together??
What I have been wracking my brains about until I have an opportunity to consult a professional is do I have any way at all to protect myself from his creditors coming after me? We aren't divorced yet so if we stay legally married am I protected in the 'community' even if I don't file? If we divorce they can still come after me since we were legally married when he wracked up all that debt right? Can I transmute my assets in to separate assets or can they take those too for his debt?
I have no idea if he wants to file Chapter 7 or Chapter 13. Together I don't think we would pass the means test for 7 but alone he might. If he did file 13 then would that give me until his payment period is done before his creditor can come after me? Needless to say (yet I'll say it anyways haha) I am seething mad right now. I currently only drive a motor scooter but had wanted to buy a car soon and when the housing market was better maybe ever get rid of our house and move. If I have to BK then that idea may be shot and I have to spend all that time on paperwork to file for something that I personally don't need (which makes me feel like abusing the system for some reason).
There was a thread I saw of someone married who filed individually but no indication if the creditors ever did go after the spouse.
I mainly posted wondering about creditors coming after non-filing spouses in CP states. But now I am all worked up with worry about what his spending since he left is going to do to me and why I didn't just file when he left! Darn that hindsight!
Comment