I can not file

[Kansas]

I have been laid off from my job.

I have $45,000.00 in CC debt. I have not paid on them in several months. Chase, CITI.

I have 2 houses. One I live in and 1 is a rental property that is not rentalable do to some repairs that it needs. It is worth about $20,000 less then what I owe on it. If I file Chap 7 and include this house the bank will go after my ex to collect the difference. Since the divorce decree states that I am responsible for paying the mortgage she will sue me for the difference. Which would be after I filed. I can not file chap 13 because I do not have enough income to make a payment plan. I am making both mortgage payments. I talked to a really good atty who explained this to me.

My questions are:
Do I answer the CC calls?
Do I wait until the CC will accept a smaller pay off?
Will the CC companies sue me?

[2manybills]

I can tell you my experience only. We have just filed Chap. 7. It has been more than 60 days from my last payments. After 30 days, I received a letter from Chase agreeing to accept less to pay off account. Last week I received a letter from Citi (my largest account) and they agreed to accept $29K instead of $45K to pay it off now. That was in less than 60 days. So I would say they are willing to settle with you.

[kenshirley]

If you don't answer the calls they will call relatives and anyone you listed as references trying to find you.
Have you talked to an attorney yet? You may still qualify for chapter 7.
They will sue you but this process will take months and if you are out of work and they know it they would rather not do that.

[jadams]

I really think you should consult a BK attorney.

Her defense would be the divorce decree, your liability should be discharged in the BK filing.

I don't see how she could then sue for a liability that was discharged.

[DebtEnder]

The divorce was done pre-bankruptcy. It's a dead duck once you file chapter 7.

Just because someone tries to come after you after you file it does not matter. The debt, or money they want is for a 'contract' that you signed for BEFORE bankruptcy. The time they decide to try to enforce the contract does not matter as far as your liability for it post filing.

It's why when filing it best to list EVERY possible debt you may have out there, regardless of how trivial it might seem as it gives you 100% protection from civil debt issues. Excluding child support/domestic support, recent taxs, and student loans.

A former house you both lived in is not a domestic support issue.

[JRScott]

Did you take a copy of the divorce decree with you?

Depending on state laws how it is written could impact what happens. What your lawyer told you in this consult could be true but not necessarily.

Alimony and Child Support are non dischargeable.

However property settlement is a separate issue. Since neither of you owned the property outright it is possible that there might be a way to discharge it. Also if she never files a claim with the court then after discharge/close she's out of recourse unless she can prove fraud.

I'd get a copy of that divorce decree and see 3-4 more lawyers in your area to see what they think. Make sure they look over it and see what they say about that property. If they concur with what the first told you then you know where you stand otherwise having fresh eyes might see fresh ideas.

[Kansas]

I will consult more attys. The divorce decree plainly states that I am responsible for all costs associated with the property. Thank you for the advise.

[Amy26]

Well it may state that you are responsible for all costs associated with it...but then if you take that responsibility and file... it should alleviate it. They can't get blood from a turnip. Course this is just my non legal opinion here!

Does she live in the house and you're supposed to pay for it? I thought usually in divorces one party assumes ownership of the house or they sell it off... we didn't have any property in my divorce so I have no knowledge about that stuff.

[slam22]

I will consult more attys. The divorce decree plainly states that I am responsible for all costs associated with the property.

That may well be but if her name is still on the mortgage and you recieve a discharge in Chapter 7 they can/will go after her for the deficiency regardless of what the divorce decree says. If her name is still on the mortgage then she remains liable.

[Kansas]

That may well be but if her name is still on the mortgage and you recieve a discharge in Chapter 7 they can/will go after her for the deficiency regardless of what the divorce decree says. If her name is still on the mortgage then she remains liable.

The atty that I talked to said exactly this. Then she can turn around and take me to court and I would still be liable.

The property is empty due to extensive repairs needed.

[falken]

Can you file a chapter 13? Debts arising from property settlements in divorce or separation proceedings are dischargable in a 13.

In can be discharged in a 7 also if it would harm you more than your ex-spose (11 USC 523(a)(15) ).

[whipster1]

Just put her as a creditor.

[inacorner]

I've got a similar issue, but without the whole tangling up thing of actual marriage.

The attorney I talked with said to put my ex down as a creditor since both of us have some interest (even in name) in the property. This way she couldn't come suing me after the back goes after her for the liability.

Possibly something to ask an attorney for you situation.

[Lovesgirl]

help from CCCS

if you can't file bk, you could send your credit cards to a CCCS agency and do a DMP plan, I had that same amount of debt and after 3 years am down to $16,000, make sure it is a reputable one, I use CCCS of Denver, CO.

[Never_Again]

There has been some erroneous advice here...

You filing for bankruptcy discharges your portion of the liability to the bank. It does NOT discharge your liability under a seperate court order, such as a divorce decree. If you are not paying per the decree, you are in contempt of court. Not a good place to be.

That said, you need to consult with a skilled bankruptcy lawyer. It sounds like you already have. If so, their advice would be correct. I don't know about including the ex as a creditor.

Sorry, but bankruptcy does not necessarily wipe everything away.