Which Chapter to file

[bFackrell]

I'm consisting bankruptcy and I need help trying to figure out which Chapter to file or what other options I may have.

I live in Idaho, have four children, am currently unemployed and in the process of divorce. The divorce will likely be a 50/50 split and I will keep the primary home. I can work but I'm only about 5 months from completing a certification course that will greatly increase my chances of earning a decent salary. Even with a BS in Computer Science (but with little experience) I'm having difficulty finding work that will pay my debts and living expenses once my divorce is final. My spouse was providing sole support but does not have the income to pay for two households.

This is my debt situation:

1. Two mortgages
   --> Income rental balance = $170K (current value is $150K) Approx $200/month positive cash flow
   --> Primary home balance = $165K (just recently purchased w/VA $0 down)
2. Current tax bill
   --> Federal = $5K
   --> Two states = $6K
3. Student loan = $43K
4. Credit card = $18K
5. Credit card = $10K
6. Credit card = $5K
7. No vehicle loans
8. Upcoming layer expenses!

[tobee43]

it's difficult to figure out since you do not list your income. that will be an essential component in trying to figure out which way is the best course of action for you.

[bFackrell]

I guess one of my main questions is; do I go to work and accept a job that is half of what I need to live or continue on unemployment?

Also, if I file Chapter 7 will I be required to sell my primary home? How can I find out of my student loan will be forgiven?

[LadyInTheRed]

If you can get a job, you should get a job. Unemployment is limited and you should only use it for as long as you absoltely have to. You may need it again. If you can't find work that pays you enough to support yourself, you need to look at how to reduce your living expenses.

Since you just purchased your home with a zero down, I'm guessing you have no equity. So, you can keep your home as long as you can afford to make payments. But, one way to reduce your living expenses may be to rent instead.

Your student loans are not dischargeable in bankruptcy unless there is an undue hardship (usually a permanent disability that prevents you ever having the income to pay on the loans).

If you are unemployed, you probably qualify for a Chap 7. It may makes sense to wait until after your divorce to file. Also, if you will have better employment prospects after you finish your certificate, you may be able to avoid BK all together.

I suggest you make some appointments for free consultations with BK attorneys.

[kornellred]

Get the divorce out of the way before you even start thinking about bankruptcy. With four children, there are child support, possible day care, and custody issues which will determine what you can and cannot afford to do with respect to bankruptcy.

[bcohen]

Get the divorce out of the way before you even start thinking about bankruptcy. With four children, there are child support, possible day care, and custody issues which will determine what you can and cannot afford to do with respect to bankruptcy.

I disagree. If, for some reason, divorce is unavoidable--and most times it's not--then you are better off filing for bankruptcy jointly while you are still married. The reason is because once debts are assigned during a divorce proceeding, they are not dischargeable, at least not with regard to the ex. Thus, if you both discharge all of your debts before divorcing, the debts will remain discharged even if you subsequently split.

Also, if your husband cannot support 2 households, then a judge ordering him to pay X amount per month in alimony and child support won't magically make him able to support 2 households. If the judge proposes to take so much that he could not eat and live indoors, I doubt he will keep working and paying for long. Perhaps the two of you cannot afford to part ways.