Filing jointly

[Faithfullymovin]

I have a questions about if my DH and I should file jointly.

We are losing our home and plan on filing BK in the near future. With that said we want to include the house in the BK but do not know if we are going to file 7 or 13 yet (it depends on the means test).

With that said, my name is not on the mortgage loan, just my DH. I do not have alot of credit cards in my name either (just 2). So I was thinking that it might be better to save my credit and not file so we can purchase a house sooner.

Any advice?

[JRScott]

What state do you live in?

If you live in a communal property state it would be to your benefit to file jointly. If not then it might be better to file separately. If you tell me what state it is I can see if communal property state

[Faithfullymovin]

This is the tricky part, we just moved from Michigan to Georgia, but the house is in Michigan.

Thanks,

[JRScott]

Neither MI or GA are communal property states.

Might be good just to have them file, but its best to run the situation by a lawyer and see what he says, be sure there are no bumps. Most give free initial consults and I'd see 3-4.

Keep in mind though that you can't file for 120 days after moving.

In addition barring some state law or regulation you would have to use MI exemptions if you haven't lived in GA for at least 2 years.

[Minnymouth]

Often one spouse will have really good credit and the other doesn't. And in most cases only the one with the bad credit files. Since your name is no on the mortgage loan, and you are surrendering the home in BK, the lender cannot come after you for the balance if you don't file. Especially being in a non communal state.

This leaves you in position to keep you good credit rating for future use.

Check with a couple of attorneys about whether to use Michigan standards or Federal standards and which option is in your best interest.

Keep us posted....