New here and have CC questions

[Lupita]

This is my first post so go easy on me! (I posted on the ch 7 forum and I think it was the wrong place)

I am going through divorce and we owe 85,000 in CC's alone. We own a townhome and my car that we still have loans on.

I want to take all the cc debt and file ch 7 and alone in exchange for hime giving me keeping the house and car.

I have 4 CC's that I believe are in my own name with my soon to be ex-husband as an authorized user. We also have 1 CC that is in his name with me as an authorized user.

I have two questions.

First, If I file on my own, will those credit cards affect his credit? Also, if I stop paying those cards will it screw up his credit?

Secondly, is it possible for the card in his name to be put in my name ( so the debt falls on me alone) as we are still married a this point?

If all this is going to destroy his credit, he may not agree and the kids and I will be without a home and car.

I haven't seen a atty yet as I can barely afford my divorce atty.

Thanks for any input. My head is spinning with all of this and I feel sick.

[StartingOver08]

You can remove him as an authorized user from your cards. He can not transfer the debt from his card to you. Do not think of a balance transfer or cash advance at this time as that will hurt your potential BK. There are specific time periods you would need to wait to file from the last BT or cash advance. Also, since you know you are going to file, making those sorts of transactions when you know you are insolvent could make that particular debt non-dischargeable.

He can pay off his card and close the account in order to protect his credit and that will not affect you. He can also continue to pay on his card and that will not affect your filing BK.

You can file alone or together, its up to you and your budget to determine what is best for your situation.

Are you currently on the deed for the house and the title for the car?
Do NOT do any transfers of assets (house/car etc) prior to filing. Speak to an attorney to get clarification of BK in your area. Most initial consultations with BK attorney's are free. Before you go, search the forums here so you can make the most of your free consultation.

Where are you located (state)?

[treehugger1]

I'll try to be gentle, but blunt.

It seems as if you want the best of all worlds. You want to attempt a chapter 7 bankruptcy and wind up with a house and car that is given to you. Either you are bankrupt or you are not. If you are bankrupt and file for bankruptcy, you will need to follow the rules. In terms of this possible scenario, you were probably correct posting to the BK 7 forum. But, keep in mind, that there is a give an take in BK. You can't be bankrupt and have assets given to you. You should meet with an attorney for an initial consult before you begin playing around with your assets.

[Lupita]

You can remove him as an authorized user from your cards. He can not transfer the debt from his card to you. Do not think of a balance transfer or cash advance at this time as that will hurt your potential BK. There are specific time periods you would need to wait to file from the last BT or cash advance. Also, since you know you are going to file, making those sorts of transactions when you know you are insolvent could make that particular debt non-dischargeable.

He can pay off his card and close the account in order to protect his credit and that will not affect you. He can also continue to pay on his card and that will not affect your filing BK.

You can file alone or together, its up to you and your budget to determine what is best for your situation.

Are you currently on the deed for the house and the title for the car?
Do NOT do any transfers of assets (house/car etc) prior to filing. Speak to an attorney to get clarification of BK in your area. Most initial consultations with BK attorney's are free. Before you go, search the forums here so you can make the most of your free consultation.

Where are you located (state)?

Thank you for your response!

First, let me say that due to minimum cc pymts, I barely have enough money left over to cover the morgage, car pmt, and basic necessities. We are maxed on the cc's, so there is no way we could even attempt BT's or cash advances.

Yes, we are joint tenants on the mortgage and he is the co-signer on the car pmt.

I'm spending as much time on here that I can with two young children, also I have already ordered the NOLO book.

We are in Illinois.

[Lupita]

I'll try to be gentle, but blunt.

It seems as if you want the best of all worlds. You want to attempt a chapter 7 bankruptcy and wind up with a house and car that is given to you. Either you are bankrupt or you are not. If you are bankrupt and file for bankruptcy, you will need to follow the rules. In terms of this possible scenario, you were probably correct posting to the BK 7 forum. But, keep in mind, that there is a give an take in BK. You can't be bankrupt and have assets given to you. You should meet with an attorney for an initial consult before you begin playing around with your assets.

Thank you also responding, I want to hear everything everyone has to say.

I don't see it as the best of both worlds. My soon to be ex and I are trying to work out a deal that works for both of us.

I agree to take on all the debt (85K) and file BK alone so that it doesn't affect his credit. In exchange, I keep the house and car and continue to make the pmts, for several reasons, we live in a good safe area and are in a good school district for the kids. I need the car to drive the kids to school and every where else since I will be the custodial parent.

Selling the house is next to impossible with this economy and we as parents feel that it's in the best interest for the kids to stay here.

I hope that clears it up a bit!