I might need to file

[silvercert]

Hello,
I am in the military and have gotten an assignment to a location where the jobs for spouses are not that great. Im currently in Phoenix AZ and combined with my wife we make 89K a year net. So my story is this.... Our house value has dropped like Brittney Spears parenting skills, so foreclosure is our only option. Mortgage is 1700 a month and our vehicles total 1300 a month and about 1220 in unsecured debt. To me with our income know we have no problem paying our bills and always have extra left over. but in a few months we will go from 7200 a month income to about 2900. Working for my wife at the new location is not worth it because the jobs do not pay well and with two kids she would be working for daycare. My question is can i file now for CH7 sine everything is in my name and use my income only or will i have to wait till she is not working? Im really concerned and trying to figure things out before i see a lawyer.

[CindyLou]

Hi Sivercert,

Unfortunately for you, Arizona is a community property state. In order to file now you will probably need to include both incomes, plus she would need to file too or your creditors can come after her for your debts.

What state are you moving to?

[silvercert]

Hi Sivercert,



What state are you moving to?

texas. but by then she will not be working. Will i have to wait 90 days to file after moving there..

[JRScott]

Since AZ is a community property state you'd both need to file. You don't need to rush it though. You would need to live in TX for 2 years before you could use TX exemptions.

You might could attempt a short sell on the house or try putting it on the market and see if you can sell it.

You might also attempt to trade down on the vehicles to reduce payments.

Good Luck

[danaf]

I would do everything possible to hold out on filing since you are moving to Texas. The good thing about Texas is they have they are the most liberal for debtors. Once you are living & working there - creditors cannot garnish your wages. So even if your home in AZ forecloses, even if there are judgements against you - you can still wait the 2 years before filing in order to take advantage of TX exemptions. Or if you don't want to wait the full 2 yrs, you can wait out until the 6 month lookback shows your median income under for 4 people and then file (after you are in TX for 91 days). If you choose to go the route of filing sooner than 2 yrs, you'd have to use AZ exemptions.

[FreshLikeADaisy]

texas. but by then she will not be working. Will i have to wait 90 days to file after moving there..

91, to be exact. And then you file using either federal exemptions, or the exemptions of the state you lived in two years ago, whichever you are eligible for.

The alternative, if you don't feel like waiting out the 91 days, is to file in the district you came from; in other words, move to Texas but travel to Arizona to file before 91 days is up. However, I don't see this benefiting you at all, because of the whole community property thing and how it might affect your filing... seems like that might be tricky.

Have you spoken with a bk atty yet? Most offer free consultations, and you could got to 2 or 3 just to see what your options are and when it might be good for you to file, pre- or post-move to Texas.

Good luck to you and your family!!!