Georgia BK experience anyone?

[toomuch]

I am reading everything I can on this board. I am going to be filing BK soon. I am filing a 7. Although my husband makes more than the median for Ga, we still don't have money leftover after he gets paid. We are always behind on something.
If, by chance he could qualify for a Chapter 7, is it a given that we lose our house? Cars not paid for?

My fear is this. If he files a 13, for one thing he is going to go into worse depression than he already is. I honestly don't think he will give up his bike or truck that he is making payments on. He is not "on board" with me in trying to fix our finances and a 5 year plan to him is like lifetime. I can not make him see it any other way. He owes 51,000 in cc debt in his name alone. I don't know what the payback plan would be for him, but I'm wondering if it would be best to just make a deal with the cc companies or do debt consolidation instead of filing. Any thoughts on that? If he misses a payment on the plan, then it's dismissed and we'd have to pay back the debts anyway.

I have consulted one lawyer who says I'm definitely eligible for a 7. The house is in hubby's name only, with me on the deed.

I am now getting together all of our financial info for consults with BK lawyers in a couple of weeks. I want to have everything in front of them so they can give me the best advice possible.

Until then, I am obsessed with this. Is it a given that if he files a 7, we lose our house?

I realize you can not tell me what to do, and trust me, I am reading so much that my brain is trying to shut down. I thank God everyday for finding this forum.

Sorry so long, and thanks.

Toomuch

[BKTango]

Hmm I am a wee bit confused. Are you and your husband filing together or seperately?

However to answer your question, depending on how much over the states median income your husband is will depend on if he even gets to do a CH7. If he's barely over then it will come down to a income verses expenses situation.
IF he is allowed a CH7 you MUST be current on the home mortgage, car loan, bike loan etc. in order to keep them. But it also comes down to how much equity is in your home and the vehicle exemptions allowed. If you fall under the exemptions and are current you are okay. If not, then CH13 would be a better choice if you do not want to surrender those.

By personal experience and my personal experience alone I can tell you, I have spent a little more than a year in a debt management/settlement program. Creditors aren't so willing to work with people nowadays, a few years back they would, now not so much. Now after only being able to settle out 2 very small accounts and spending too much money to the company I am in BK anyway, which was what I was trying to avoid. I've wasted a whole year, when I should have just filed and been done with it. With your husband having that amount of cc debt in his name alone, I assume you may have some as well? You might want to sit down and think long and hard about how to best go about getting yourselves out of this hole and reconstruct your lives and learn from it. Either way you go, best of luck to you both.

[toomuch]

Hmm I am a wee bit confused. Are you and your husband filing together or seperately?

However to answer your question, depending on how much over the states median income your husband is will depend on if he even gets to do a CH7. If he's barely over then it will come down to a income verses expenses situation.
IF he is allowed a CH7 you MUST be current on the home mortgage, car loan, bike loan etc. in order to keep them. But it also comes down to how much equity is in your home and the vehicle exemptions allowed. If you fall under the exemptions and are current you are okay. If not, then CH13 would be a better choice if you do not want to surrender those.

By personal experience and my personal experience alone I can tell you, I have spent a little more than a year in a debt management/settlement program. Creditors aren't so willing to work with people nowadays, a few years back they would, now not so much. Now after only being able to settle out 2 very small accounts and spending too much money to the company I am in BK anyway, which was what I was trying to avoid. I've wasted a whole year, when I should have just filed and been done with it. With your husband having that amount of cc debt in his name alone, I assume you may have some as well? You might want to sit down and think long and hard about how to best go about getting yourselves out of this hole and reconstruct your lives and learn from it. Either way you go, best of luck to you both.

Yes, Tango, I am filing a Chapter 7 and turning in my car. I have about 60k in cc debt in my name. Due to health issues, I am not working.

He has his own debt.....all debts are in separate names. Total of 110k in unsecured, plus the bike, his truck, my car and most importantly the house.

Everyone keeps telling him he will lose the house in a Chapter 7, in Ga.

We will be seeing several lawyers about this, but it's 2 weeks away and I am just reading this board and gathering info.

I don't know how much equity we have in the house.....maybe 11,000 or so as we have only been in it for 3 and a half years.

[BKTango]

Gotcha, my husband and I were the same with the cc's and cars all were seperate the only thing we owned together was the house, but we filed together because in some instances you can double the exemptions by filing jointly.

Check the "Exemptions" forum if you haven't, or you can look up Georgia bk exemptions, they allow $10,000 real or personal property exemption (this would be your equity), double that if you file together. Some states allow you to use federal or state exemptions. Question the lawyers about all of this.

Here is a great link for some reading for you.
www.georgiabankruptcyblog.com/archives/cat-consumer-bankruptcy-guide.html

It gives specifics on your exemptions following state exemptions, and quite abit about Georgia bankruptcy. Remember with those exemptions if you file joint, you would be allowed to double them. Filing seperate you cannot.

Just be sure to make yourself knowledgable of everything you can, that way when you go for you consultations you already have a heads up and will absorb and understand the information given to you much better.

[hansky]

He has his own debt.....all debts are in separate names. Total of 110k in unsecured, plus the bike, his truck, my car and most importantly the house.

Everyone keeps telling him he will lose the house in a Chapter 7, in Ga.

We will be seeing several lawyers about this, but it's 2 weeks away and I am just reading this board and gathering info.

I don't know how much equity we have in the house.....maybe 11,000 or so as we have only been in it for 3 and a half years.

One thing I missed. In an earlier post, you said "The house is in hubby's name only, with me on the deed." If you are on the deed, then the house is also in your name. Did you mean the loan is only in his name, and both of you are on the title?

As for keeping the house in a Chapter 7, it depends on how far behind you are, and how long it will take to catch up. You'll certainly need to make your monthly payment, and you'll probably have to catch up missed payments pretty quickly (perhaps 2-3 months after filing). The lender may accept a partial lump sum, then extra per month. It all comes down to making a deal the lender will accept, as there is less ability to force a creditor to take a deal in a 7.

While it is good to research research, you may find that a lawyer can can answer most of your questions pretty quickly. There is a lot of bad advice and misinformation out there, and if you get good advice you'll be able to plan better.

[hansky]

It gives specifics on your exemptions following state exemptions, and quite abit about Georgia bankruptcy. Remember with those exemptions if you file joint, you would be allowed to double them. Filing seperate you cannot.

While that is true, keep in mind that filing searately would entitle both debtors to the full exemptions. For example, if two debtors owned a house jointly, with $50,000 equity, they both would exempt (in GA) $10,000 of their half of the equity.

Practically speaking, if a husband and wife are both filing, it would be the reare case where they need to file seperately. One example would be where they were separated and living apart.

[BKTango]

Toomuch are you and your husband behind on your mortgage? If so then yes you will need to catch up rather quickly, or file a CH13. Make sure this is all discussed at your consultations. Like I said in my previous post as long as you are current with the loans (secured) and fall under the exemption allowed and used on said item or property then it will be safe in a CH7.

I am still unsure why you and your husband are filing seperately. Perhaps at your consultations you can discuss this with the attorney and see if it is indeed the best route to go.

Keep us posted on how things are going!

[Grace]

Although my husband makes more than the median for Ga, we still don't have money leftover after he gets paid. We are always behind on something.

Why are you always behind? Generally that means:
- You took out too much debt.
- You now earn less than you did when you incurred the debt.
- You have no idea where you're spending your money.

My fear is this. If he files a 13, for one thing he is going to go into worse depression than he already is.

Get him into counseling.
[QUOTE=toomuch;77159]I honestly don't think he will give up his bike or truck that he is making payments on.[QUOTE]
No problem. Tell him he needs to keep making the payments. Then he can keep the bike and the truck. He also needs to keep making payments on all the other debt he has so he won't have to file bankruptcy. If he can do that, he can keep the bike and truck. If he can't, he has to give up something. It's simple. Either make the payments or forfeit the assets.

He owes 51,000 in cc debt in his name alone.

If he doesn't want to lose his assets or file bankruptcy, tell him to find a way to pay off the $51,000 in debt. A second job? Cutting expenses? No magic involved.

[toomuch]

Gotcha, my husband and I were the same with the cc's and cars all were seperate the only thing we owned together was the house, but we filed together because in some instances you can double the exemptions by filing jointly.

Check the "Exemptions" forum if you haven't, or you can look up Georgia bk exemptions, they allow $10,000 real or personal property exemption (this would be your equity), double that if you file together. Some states allow you to use federal or state exemptions. Question the lawyers about all of this.

Here is a great link for some reading for you.
www.georgiabankruptcyblog.com/archives/cat-consumer-bankruptcy-guide.html

It gives specifics on your exemptions following state exemptions, and quite abit about Georgia bankruptcy. Remember with those exemptions if you file joint, you would be allowed to double them. Filing seperate you cannot.

Just be sure to make yourself knowledgable of everything you can, that way when you go for you consultations you already have a heads up and will absorb and understand the information given to you much better.

Thank you Tango. That is an excellent site about Ga BK. I have read parts of it and I'm starting to have hope.......but not counting my chickens....

[toomuch]

Toomuch are you and your husband behind on your mortgage? If so then yes you will need to catch up rather quickly, or file a CH13. Make sure this is all discussed at your consultations. Like I said in my previous post as long as you are current with the loans (secured) and fall under the exemption allowed and used on said item or property then it will be safe in a CH7.

I am still unsure why you and your husband are filing seperately. Perhaps at your consultations you can discuss this with the attorney and see if it is indeed the best route to go.

Keep us posted on how things are going!

No, we have never been behind on our mortgage payments with this house or our last. The loan is in his name and I'm on the deed....50/50.

The lawyer I consulted with said depending on the Means Test, which I had no pay stubs of his to give her at the time, I would definitely file a Chapter 7 since I have no job and 61K in cc debt plus the car.

If it is possible for him to file a 7, then I suppose we would file together.

Like I said, I am going to consult several lawyers as I have one shot at this and want it done right. As someone suggested, read, read and read some more.

[toomuch]

[QUOTE=Grace;77228]Why are you always behind? Generally that means:
- You took out too much debt.
- You now earn less than you did when you incurred the debt.
- You have no idea where you're spending your money.

Get him into counseling.
[QUOTE=toomuch;77159]I honestly don't think he will give up his bike or truck that he is making payments on.

No problem. Tell him he needs to keep making the payments. Then he can keep the bike and the truck. He also needs to keep making payments on all the other debt he has so he won't have to file bankruptcy. If he can do that, he can keep the bike and truck. If he can't, he has to give up something. It's simple. Either make the payments or forfeit the assets.

If he doesn't want to lose his assets or file bankruptcy, tell him to find a way to pay off the $51,000 in debt. A second job? Cutting expenses? No magic involved.

Sorry, not sure how to multi quote.
When we bought this house 3 and a half years ago, it was twice the mortgage as our last one. We had it covered because hubby was working mega overtime and I had a thriving business. We had no problems with paying all of our bills on time.

Then the overtime came to a screeching halt. Believe me, I have learned never bank on overtime.

At the same time, the cc companies kept sending us offers we couldn't refuse, upping the credit limit and we just lived the life.

Then I was dx with congestive heart failure. I already had a heart attack at 39 (we are both 52 now). I had a cleaning business with 5 employees, but always had to stay on top of them. I worked my butt off right along with them. I tried to keep up but had so many crash and burn days that I have had to stop. I gave up all of the commercial accounts and have just kept two private houses, which are simple ones. That's all I can handle. I can no longer pay my bills.

I can't rob Peter to pay Paul any longer. After stopping the cc payments, we are still living on the edge. That's why I am turning in my car. I didn't buy one single Christmas present this year.

As for what you said about hubby and no magic involved.....well, earlier this evening I told him just that. It turned into a screaming match and I told him I will file for myself, take my cats and live in an efficiency if I have to. The house, living with his crap is not worth the stress. I do need his medical insurance but that's it.

I'm not looking for sympathy. I made my bed and I'll lay in it. I am just so emotionally drained, more so over hubby's attitude and lack of moral support than the bk itself.

He is a depressed person, has an addictive personality and is an only, spoiled rotten child. It's true that opposites attract
As far as counseling (for depression), he doesn't have time. I do though.