Overwhelmed

[shs157]

Forgive me if I'm not making sense. My husband took out $45k in personal loans to start his own business. I did not know this. He just informed me that he's totally broke, cannot pay the loans, and his business has failed. He wants to file bankruptcy. Our home is only in my name and should be OK. However, we have a joint savings account worth about $20k. All of that money comes from prior years tax returns. We're expecting another $8k this year in tax returns. We do not have much else. The condo we own is worth about $30k less than we owe, our cars are 10 years old, I don't have any jewelry, etc. All we have is our savings. Will I lose that account b/c it's in both our names? Will I lose half? Is there anything I can do to keep it? I have strong religious convictions and planned to send our daughter to a Catholic school next year. It's $4,000/year. Are they going to take our money and I cannot send her? I'm so scared.

[ValleYum]

Hi.

You chose a good place to come and share and learn. There is a lot of good information here for filers and for those who aren't filing but involved (as I read it, you aren't planning to file - do you work?).

I am sure you a running the full gamut of emotions right now. I am sure it was difficult for your husband to come and tell you this, too. Was the business that failed his only job or was it a sideline business?

There are exemptions in bankruptcy that allow the person(s) filing to keep some items for their 'Fresh Start'. Most bankruptcy attorneys will offer a free consultation - your hubby should schedule several and perhaps you can go with him so you can fully know the options available to him and how this will affect your family.

Federal bankruptcy exemptions are available in your state and if used may allow your hubby to exempt some cash - asking the attorneys about trying to keep your savings at the consultations should ease your mind about what will happen to the money - also ask them about school tuition for your daughter.

Learning about bankruptcy and my options made me less scared. I hope it is the same for you. {{{hugs}}}

[Drazil65]

Sorry you had to find out like this, I am sure you are in shock and a panic. I agree with the other poster, you BOTH need to go to a few free attorney consults with your situation. I say BOTH because this is a good lesson in life and your marriage for you, be much more involved in your husbands financial picture and make future decisions TOGETHER. You should get good answers at the consults and ease your mind a bit.

Have you already enrolled your daughter in the school yet for next year? Find out from the attorney if it is possible to perhaps pay for 1 or 2 years in advance, that way at least you know that she will be going to that school no mater what your financial future holds. Maybe this is the way to protect some of that money. Also, start reading theis forum inside and out and you will feel better as there is so much info here. Good luck!

[BankruptinNJ]

Forgive me if I'm not making sense. My husband took out $45k in personal loans to start his own business. I did not know this. He just informed me that he's totally broke, cannot pay the loans, and his business has failed. He wants to file bankruptcy. Our home is only in my name and should be OK. However, we have a joint savings account worth about $20k. All of that money comes from prior years tax returns. We're expecting another $8k this year in tax returns. We do not have much else. The condo we own is worth about $30k less than we owe, our cars are 10 years old, I don't have any jewelry, etc. All we have is our savings. Will I lose that account b/c it's in both our names? Will I lose half? Is there anything I can do to keep it? I have strong religious convictions and planned to send our daughter to a Catholic school next year. It's $4,000/year. Are they going to take our money and I cannot send her? I'm so scared.

I think you meant "refunds"?

Anyway, I'm so sorry. All of this must be such a shock. I do agree that you BOTH need to go to the FREE attorney consultations because this involves BOTH of you. You must tell your husband that you BOTH must be involved in financial decisions that concern your family. This is important. You are equal partners in a marriage.