Can I sell Condo, then file Chapter 7?

[soxfan]

I am in the middle of a fairly complicated situation (I guess we all are) and I am really racking my brain. Keeping it as short and simple as possible.
My STBXW were trying to file bankruptcy jointly prior to divorce. Per divorce judge we were taking too long and has forced us to move foward with divorce. One option is to file serperately after divorce. We have anywhere from $40,000-$60,000 equity in Condo. We are about 4 months behind in mortgage, but not in foreclosure, in fact waitng on decision from bank on loan modification.
I would like to put condo on market today. Say it sells real low and we get $35,000 clear after closing. We split the procedes. Will I still be able to file Chapter 7 a few months down the road? Combined we have about $50,000 in unsecured debt.

My dilemma is whether to try and pay on the mortgage, let it go to foreclosure, quick sale or....I don't have money to keep up let alone catch up.
Would all the procedes from sale have to go towards debt, or can I use it to start my new life. i.e. find a place to live with security deposit in hand, and then file chapter 7 after I get settled?

Thanks for listening.

[AngelinaCatHub]

It depends on how long you will be to filing. Also you must spend it only on exempt stuff. Also, if you are setting up a way to keep monies and not pay debt, this "could" cast aspersions of fraud and the look back can be more than a year. Both the condo (potentially) and the cash it MAY bring in, are assets.

You best be represented, and then get that matter settled in your mind even before divorce. 'Hub

[StartingOver08]

You can sell your condo before your divorce and BK. Make sure it is an arms length transaction to a 3rd party for market value. Keep a record of the sale (the HUD-1) and comparable sales in the community/condo building.

You also are allowed to use the money to find a rental and pay the deposits to get into the rental. When you complete the divorce you can file BK if you still need to file after the sale and the divorce.

For the best results with your situation, work out your budget to see which way will work best for you and your STBXW. You will need to know your exemptions if you are filing as a single person or filing jointly before the divorce. Look at this link for your exemptions: www.legalconsumer.com

[soxfan]

Thanks for the info. The sale would definitely be an arms length buyer. My intent is truly for survival purposes only. I have literally told co-workers to keep any nice cardboard boxes they have. No I don't think things are that dire, but getting closer as expect my STBXW will be given an overly sweet deal as she is on SSD, and we were married for 20 years. Not good for me here in CT.

It is entirely possible that we will be in foreclosure status before we ever get a chance to sell on open market.

If that happens, am I allowed to file bk after foreclosure?

We do have a bk attorney, and at least I will be meeting with him soon, I think it will be nice to be armed with some knowledge from you fine people.

Thanks

[frogger]

You can sell your condo before your divorce and BK. Make sure it is an arms length transaction to a 3rd party for market value.

Make sure that you heed this advice. Otherwise, you could have problems.

[soxfan]

I will heed it. The buyer-if there is one will be 100% legit. Heck the buyer may be the bank.

All I am looking for is a fresh clean start and enough money needed to move to an apartment. That's it. I can eat ramen noodles everynight. Of course if the divorce judgement doesn't totally break me I would like to have cable and Internet since I will never go out.

[AngelinaCatHub]

I will heed it. The buyer-if there is one will be 100% legit. Heck the buyer may be the bank.

All I am looking for is a fresh clean start and enough money needed to move to an apartment. That's it. I can eat ramen noodles everynight. Of course if the divorce judgement doesn't totally break me I would like to have cable and Internet since I will never go out.

Cheer up, my man. Things will get better. Do you have children by this person? A settlement should not be too much problem if no children. If you have not done wrong, alimony should not be a problem. That is up to you and her. I would hope it would be an amiable closure.

My first childhood wife and mother to my two children were married for 23. We grew apart in our life development. I believe in one marriage but things do happen. My wife, Mrs. and I are forever. Much better matched.

Let time go by. Don't look, the right one will come when it is time. I am still friends with my Ex. She is a good woman.

I also am pretty friendly with Mrs. LOL. 'Hub

[soxfan]

Thanks Hub
Glad to hear things have worked out well for you.
"If you have not done wrong..."
Well-I have taken a few rides to see my future Mrs. Right. Nothing outlandish, but there were a few rent-a-car and cheap hotel expenditures that have shown up on my bank statement. Not ever more than a few hundred dollars total, but those were months I did not make any contrbutions to the mortgage. We were already behind, and this mess was mostly caused by her spending non-stop.

How wrong do you think that is? How wrong will the Judge think that is?

[soxfan]

PS-We have no children.

[StartingOver08]

You spent funds from your bank account and not on a credit card?
Then you are ok. Its the people charging up to the last minute that have issues.

[soxfan]

A bit of an update:
Divorce final
ex got a good alimony deal as I expected
the condo will be on the market within the next week
looks like loan mod application kept us out of foreclosure
I am hoping it sells quickly, and we each get $20,000 after mortgages and condo fees are paid

what do you think the odds are of being able to use the $20,000 as either downpayment on a real small home, or use it for renting an apartment and providing proof the money was spent on fresh start, not anything considered to be for personal gain or vacation or car or jewelry...?