Info about Chp 7

[Divorcechaha]

My spouse and I are filing for divorce after 7 years of trying to make it work. We both have accumulated alot of cc debit separately (rough 25k each). The only debit we have together is our home which he will quick claim to me. I am thinking of filing a chapter 7 after my divorce is final because he is against doing it together. Once the divorce is final I will owe 119k left on the house and my cc's are 25k. My car is paid off so that's a plus. I'm not really concern about not having the ability to get anything on credit after the bankruptcy because I really don't need anything. I have a car, a home and once this debit is cleared I'll actually have some money. It just will be extremely tight and I don't want to drown in bills. My concern is that with my minimum debt I won't be able file since obviously I'm setting it up after getting a divorce and not before. Is it likely I will be granted the chapter 7 and how do I go about getting started. Any information is greatly appreciated.

Signed,
Dancing 2 Divorce

[leonel9]

It's unclear to me where you are in the divorce process. If you have not yet filed, I would get your divorce attorney (are you being represented by different attorneys?) to consult with your bankruptcy attorney (do you have one yet?).

On the divorce side, you'll want to make sure you don't do anything that will go against your divorce agreement.
On the bankruptcy side, you want to ensure your debts will be dischargeable and that the trustee will not have a new asset to go after as a result of your divorce.

[Divorcechaha]

Thank you for your reply. I have a divorce attorney and will be meeting to sign the divorce decree next week. I do not as of yet have a bankruptcy attorney, I am more so gathering information and trying to figure out if it is plausible to do so after getting a divorce. I guess speaking with a attorney might be the best next move.

[leonel9]

Usually you can get an initial consultation for free. One reason you may want to do that now is because if you own the house 100% post-divorce, you may end up with more equity than you can exempt. In the case of a Chapter 7 case, you will need to either negotiate with the trustee for the value of the non-exempt equity, or sell the house. Without a lot more details it will be hard to provide good advice.

But really, the best advice will come from an attorney who is able to fully understand the circumstances of your situation, the exemptions in your state, and the unique aspects about your court/trustee.

[rjmwx81]

In some states, you might be liable for your spouse's debts even if they're not technically "in your name." The divorce decree is just an agreement between you and your spouse, the creditors aren't bound by it, so even if your soon-to-be-ex agrees to pay certain debts, the creditors may still consider you "on the hook" for them. A good bankruptcy attorney will help you work out those potential entanglements.

[bcohen]

It may be better for you to file for bankruptcy together with your husband, while you are still married, thus discharging all of your debts. That way, you won't have to worry about apportioning debt in your divorce.