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Old debts, new marriage

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    Old debts, new marriage

    .

    I incurred all my debts prior to my marriage.

    Having been laid off seven years ago with a decent nest egg I began investing in the real estate boom. I eventually built and used $88k in credit card debt used to help self-finance short-term investing projects. For five years I was living off of refinance proceeds and investing. I was also under the tutelage of a businessman mentor who was very promising and I was hopeful of landing some fantastic work. While on the hook with him I drew down on the last of my cards to pay the others trying to hold onto an excellent credit rating. All we needed was one contract, but the economy imploded and when he finally gave up his business my hopes collapsed, all cards went to collection as I retreated to my fiance's apartment to lick my wounds.

    I short sold my home last year, a year after we were married. We've filed taxes jointly this year and last. Other than that we've kept our financial lives completely distinct; no shared accounts, cards, etc. She is the sole earner ($70k) and I am back in school full time. I've been unable to find work having been away from my career for about seven years.

    My assets are a house full of furniture, my late model suv and her late model car that I registered to me for CA registration purposes. No cash.


    My questions:

    With the $88k in debts sure to become judgments I want to file BK, but what are the entanglements, if any, with my wife now that we've filed jointly?

    Is her income today a hindrance on my declaring insolvency from before, or is my current status of unemployed full time student the sole consideration for debt repayment ability?

    What would be my most advantageous strategy to take if I need to restructure anything to qualify for a BK? For instance, I understand shifting assets to her is a red flag, but it's really her car, and I'd hate to give up one as a superfluous asset of mine when it's not.

    Thank you.
    Last edited by BKF; 04-27-2010, 09:43 AM.

    #2
    I assume you're talking about file income tax returns jointly. That has no bearing on who's money is who's, her income will be considered even if you file your bk separately. I don't have much info because we filed jointly, but I would suggest a free consult with a couple attorneys in your area. They can give you a pretty accurate game plan without obligation.
    attorney consult and decided to file, 02/15/2010
    no-asset Chapter 7 filed, 03/11/2010
    341, 05/10/2010
    discharged, 07/13/2010

    Comment


      #3
      Thank you. Yes, I was referring to filing our taxes jointly and fixed the wording above.

      I'm shopping atty's now, but would love to get community input in the meantime.

      Just for clarification, you're saying her current income is a consideration though I'm filing separately, yes?

      Comment


        #4
        Yes, her income is included. Somehow they figure expenses differently than filing bk jointly. There are allowances on how much you can claim that she contributes, or something like that. Someone here who's filed separately can answer better than I.

        With the right attorney doing the calculations I'm betting most single filers have no issue. GL!
        attorney consult and decided to file, 02/15/2010
        no-asset Chapter 7 filed, 03/11/2010
        341, 05/10/2010
        discharged, 07/13/2010

        Comment

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