I dont think I would quailify for chapter 7, right?

[Shelly3630]

Ok, I am going to visit an BK attorney on Monday. I have around 25,000 in cc debt. In just my name. Hubby is not going to file. I don't think that I would qualify for chapter 7 at all since we have a home that is paid for entirely. And we have a little bit of land with it as well. I am assuming that chapter 13 would be the way i would be forced into going. We make together around 70 grand a year. Any info would greatly be appriecated.

[LadyInTheRed]

You haven't provided enough information for anyone to tell you if you qualify for a 7. The first step is to pass the means test. You can get a good idea of whether you do by using the calculator at http://www.legalconsumer.com/bankruptcy/nolo/. Even if you pass the means test, the fact that you don't have a mortgage could mean a 7 would be dismissed for totality of circumstances, meaning you have enough disposable income to pay creditors in a Chap 13.

A separate question from whether you qualify is whether you would want to file a 7. I was reading your other thread. You'll lose assets in a chap 7, unless everything is in your husband's name. Make more sense to give up some assets than to file BK.

[Shelly3630]

Well our house is paid for but we do owe on some land. We financed the land to finish the house. Its like 700 a month. Its really our mortgage payment. Its in both our names. Other than that, my cc bills and some medical bills in my name, I did'nt think I will qualify for 7, but would be lose our home and land if I were to qualify? I will probably have to go with 13 I'm sure, but just thought I'd ask.

[keepsmiling]

Shelly, it's hard to answer without seeing the info from your original post Jan '10. You might want to repost that info here.

Believe me, I understand hesitation and if I daresay, stalling lol.... but have you spoken to any atty's yet at all?

I guess the question here is how does the land calculate into your homestead exemption- which I think is 20K in GA. So what is the total value of your homestead? I think you said you have 15 acres plus another 15?

Strikes me that a CH7 trustee might salivate over all that land and would be likely to take SOMETHING. Also, you mentioned that you couldn't afford much of anything, so how would you cover a 13 payment? Especially since you would probably have to pay something to cover the land you keep since it's an asset.

Has your dh given the possibility of selling some land any more thought? You got good advice in the last thread as this is almost surely the best solution to your problem.

[Shelly3630]

Ok, I do have an appointment tommorow with a bk attorney. I was pretty certain I would'nt be able to file for 7. The land itself is not going to be filed under bk. And selling it is not something he will do. Not an option at all. Only my ccards, and possibly some medical bills. ( About 30 grand, maybe) Thats all I am putting under the bk. My husband will not file. His credit is decent and he wants it to stay that way and so do I.

[momofthree]

If the land has your name on it, it will have to be listed as an asset on your bk petition, whether you want to or not.

[LadyInTheRed]

You also have to list all debts in your name, even if it is also in his name. You can't pick and choose.

If your husband is unwilling to face the reality that he can't have all those toys and land and cover living expenses, you have problems that BK won't resolve.

[jetsfan2010]

You also have to list all debts in your name, even if it is also in his name. You can't pick and choose.

If your husband is unwilling to face the reality that he can't have all those toys and land and cover living expenses, you have problems that BK won't resolve.

that sums it up. Your attorney will tell you this tomm as well. Any asset your name is on is fair game in the bk courts.

[momofthree]

So I went and re-read your thread from 1-2010. Back then you had $10k credit card debt and were making $3200 a month. In the last 18 months, your income has nearly doubled, but your debt load has as well. I have to agree with the others that there are spending issues with your dh that bk will not resolve. To quote Dave Ramsey, money doesn't solve money problems. You (or your dh) need a complete change in the mindset.

[Shelly3630]

Ok so If I file for chapter 13 I have to file bkr on everything that has my name on it. That does have me a little confused. I didnt think I would have to file everything undee bkr if I chose to pay for that. Also I want to thank you for all your help.

[keepsmiling]

You know, facing this reality is very hard. Dh and I went round and round in discussions on this for literally years. I knew we were living above our means and that one day the house of cards would crumble. He refused to believe it. It was only when I finally had to raid ds's account to stay afloat that reality finally hit and he was forced to see the truth. We had to drop the health insurance and stop paying the cc's. It was excruciating.... and frankly, still is.

Shelly, you are extraordinarily lucky to be in the situation of having real assets that can get you out of this situation before it's too late, with no real loss to your lifestyle- only gain from what we can see here. I hope that an attorney will be able to convince you and your hub before you get to the kind of tipping point we had to get to.

[Shelly3630]

Ok so I went to two different BK attornies and they were like 600-700 a month payment for 5 years. We can't afford that. So my dad who has a 800 credit score has offered to get a loan for me to try to settle the debt. It might work. It would be better for us. But I have read where if they see we have assests they may not settle. I might go in the morning and get my name of off my house and land. I'm not sure just how that will work.

[merime]

Hi there,
Let me know how the getting your name off the house goes. I was told in NC that having a quick deed done makes the house more vulnerable. Never understood that part. My husband did not want to do a quit deed , even though I really wanted to about 3 yrs ago BEFORE I WAS IN OVER MY HEAD. Anyway, I know how you feel. All the debt is mine. Together filing a chapter 13 looked like a really bad idea. My lawyer said i passed the means test , but I don't think I believed him. We have a $179,000 home , 2 cars that are 2 and 3 yrs old excellent condition, my husband has savings,( all in his name only now-I only keep a woodforest checking account with less than $50.00 in it), so I do not see how we could do a chapter 7. My husbands credit is still PERFECT and even though I know his being very cheap( I was given $100 a week for living expenses for 3 kids and self), i would not want my bad debt to haunt him. good luck to you, and keep me posted!!

[Pandora]

quit claiming will do nothing for you; it merely removes any interest you have in the property - it does NOT remove your responsibility to the loan papers you signed.

There is an entire sticky about quit claiming on the forums.

[Shelly3630]

There has never been a loan of my house and land. Paid in full. But I realize now this isn't going to work. Going to try to settle.