just getting started

[Guest]

Hello all,
I've been reading this board for a few days now. BK feels kinda inevitable for us sometime next year so I'm trying to prepare/get ready. I just have a couple questions right now.

1. Is there a general guideline how this would work: we are not legally married but have a house (in foreclosure up for short sale) together and a car (payments current) together and a child. I assume we would both file but could not file together? Does that mean we would have to pay the attorney twice?

2. The house is in Illinois, but we moved to Nevada this past spring/summer. Would we file in Illinois then? And does that mean we'll need to afford plane tickets to go back multiple times?

3. Because of moving my income will be 20k less starting this month and he is now self employeed. Do we need to wait 6 months to a year to file in order to have the new income be considered?

Thanks everyone

[Drazil65]

Welcome, read all the items here that you poosibly can, go ahead and ask alot of questions, get your ducks in a row and breathe! You are in good company with good people, you are right in preplanning and what one person cannot answer another will. You will be smarter by the end of this process and life will be better. Good Luck!

[keepmine]

Yes, you'll need to file separately and likely will incur 2 legal fees.
You file where you spent the greater part of the previous 180 days so, Nv. would be where you file.
THe means test is just part one. You need to fill out schedules I and J to see if you have enough monthly disposable income to fund a Chapter 13.

http://www.legalconsumer.com/bankruptcy/means-test/index.php

Fill this out and see where you stand. Your income may not make any difference.
Most bk lawyers give a free or lowcost initial consultation. Speak with a few and see what they suggest.

[Guest]

Thank you!
oh, 180 days? Thats good! I don't know why I was thinking it would be a year or 2. I'm partially frightened and partially just want to get going and be done with it. Buying the house was the stupidest thing I've ever done financially.

[LadyInTheRed]

Thank you!
oh, 180 days? Thats good! I don't know why I was thinking it would be a year or 2. I'm partially frightened and partially just want to get going and be done with it. Buying the house was the stupidest thing I've ever done financially.

As keepmine says, it's where you've lived the greater part of 180 days. So, you only have to live in Nevada for 91 days in order to file there.

The 2 years you are thinking about has to do with which state's exemptions you use. If you have resided in your current state for more than 91 days but less than two years, you must use the exemptions of the state where you lived for the better part of the 180-day period immediately prior to the two-year period preceding your filing. So, it sounds like you will need to use Illinois exemptions, assuming Illinois law doesn't limit the use of exemptions to current residents.

[buzzstpoint]

I dont know the circumstances of your home purchase. But the bank could be partially at fault.

When we bought our house, we found one we liked and went to the bank.. Denied even though we would be able to pay the loan.. The banker said he didn't want us House rich and cash poor. Gave us a number for use to work with.

But hope you have a good financial recovery.