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 Posted: Tue Oct 11, 2005 9:18 pm Subject: Payday/bankruptcy/married |
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My husband and I are in forclosure and close to loosing our one car. I filed chpt. 7 in 2000, he did not. He has one secured loan and 3 pay day loans. In order for us to file chpt. 13 he has to get a new job which he should have next week or so. My question is should he file chpt. 7 and I file chpt 13 separatly to get rid of more of the debt or should we just file 13 jointly?
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Ally P
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| Posted: Wed Oct 12, 2005 9:58 am Subject: |
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Ally, you have already filed chapter 7 in the year 2000. Do you want to file bankruptcy again? Your credit file will get completely tarnished if you do so.
Are you aware of the new bankruptcy laws changing on 17th October, 2005? I guess filing for bankruptcy will be really tough now. Consult your bankruptcy attorney if the process will get complete before the 17th.
As per the present bankruptcy laws, in chapter 13, you will still be required to pay the debt whereas most of the debt gets erased in chapter 7.
Consult your bankruptcy attorney if you still have this option available now.
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ben
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| Posted: Wed Oct 12, 2005 12:02 pm Subject: |
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chpt 13 is still available however i wanted to know if anyone feels that my husband should file chpt 7 to erase all of his debts and i file 13 to get out of forclosure.
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teal_butterfly_24
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| Posted: Wed Oct 12, 2005 12:07 pm Subject: |
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Since you both have separate credit identities, you can file any of the chapters depending upon your financial situation. Your credit file won't get linked to each other unless you co-sign the debt together.
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roxette
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| Posted: Mon Sep 22, 2008 4:04 pm Subject: if im married |
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does my wife if she does not want to file,will her income be involved.im not behind on anything but starting to feel the crunch
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gillespie
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| Posted: Mon Sep 22, 2008 6:20 pm Subject: |
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If she doesn't file with you, then her income will not be involved.
Consider this, though. If you have joint accounts, you file BK and she does not file, then she will become solely responsible for those debts. To that extent, they could sue her and garnish her wages. That would only be on accounts where you both were signers. As to your individual debts, they can't touch her after you file.
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DebtCruncher
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| Posted: Tue Sep 23, 2008 5:12 am Subject: |
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DC - if the poster files a Chapter 13, then the creditors can't go after the wifes income to pay the debt b/c Chap 13 is a repayment plan.
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desperatelyseekingsanity
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| Posted: Tue Sep 23, 2008 6:35 am Subject: |
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I guess I was assuming Chap 7 ... if it is a 13 then there is a stay against that debt while the plan is ongoing. However, in cases where the plan pays less than 100%, after the plan is over then they could come after co-debtors for the remaining balance.
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DebtCruncher
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| Posted: Tue Sep 23, 2008 10:36 am Subject: |
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I did not know that about post-plan, that they can go after the co-debtor. Interesting. So, they can't go after the original debtor post-plan, but they can go after the co-debtor?
Can you cite this rule? It doesn't seem fair. I recall reading something that a Chap 13 filing prevents the creditor from collecting on the debt, but did not see anything about post-plan. (Am interested in learning more.)
Thanks for your help!
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desperatelyseekingsanity
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| Posted: Tue Sep 23, 2008 6:02 pm Subject: |
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| Quote: | | I recall reading something that a Chap 13 filing prevents the creditor from collecting on the debt |
The "stay of collection" applies to the entire debt while a 13 is in place, but the "discharge" is only granted to the individual obligations of the person whoe filed the BK. After the BK is closed and the stay of collection ends, then any person not discharged (ie co-debtor) can be collected on. That is one of the main reasons a lender might require a co-signer when someone has weak credit who wouldn't normally qualify for a loan by themselves -- because they know if that person files BK then they can go after the co-x later on.
| Quote: | | Can you cite this rule? |
No. Quite simply, because there are no rules that say they cannot. A co-debtor has guaranteed that the debt would be paid-in-full. When one debtor becomes discharged by operation of law (bankruptcy), remaining co-debtors are still responsible for any balance due.
We have a general counsel who advises us in terms of complying with laws, and he assures me that when a BK is discharged, it's completely legal for us to go after any remaining co-debtors that weren't discharged. In turn, we have sued co-debtors under these circumstances and the judge has sided with us and granted judgment.
There are some ramifications. One of the main one's is whether the co-debtor actually received a benefit/proceeds of the loan. If a co-debtor has not received any portion of the loan, they may not be responsible after the primary account holder is discharged in a bankruptcy. In our business, that is why we make our loan proceeds payable to the co-debtor as well -- so that legally by endorsing the check, they have received a valuable consideration and will be collectible if either party files bankruptcy.
A bankruptcy attorney's website does basically mimic what I just said -- you can read it at @@http://www.bankruptcyhome.com/cosigners.htm@@
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DebtCruncher
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| Posted: Tue Sep 23, 2008 8:38 pm Subject: |
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I have filed a bk so I can say this, I would never put my co-signor in a position of financial mess because of my mistakes, which I do have a co-signor (my sister) on a private student loan which is paid every month on time so it doesn't ruin her credit.
Unfortunately with today's economy it is more and more common to have to declare bk because of our financial mess in this country. It is a no-win situation for everyone. I believe that nobody wants to have to declare bk it ruins your life for a time, however that is why there is bk is to let you put your life back in order.
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ladybug
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| Posted: Sun Sep 28, 2008 1:41 am Subject: |
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lady was it your medical problem or your husband business that made you file B.K.? your disability claims and non-ability to work a regular job surely had something to do with your B.k.? yes or no?
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| Posted: Mon Nov 24, 2008 7:58 am Subject: what is definition of married but living separate? |
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I need to file a chapter 7. I am married, but he is moving out after the holidays. Can I file for a Chapter 7 after he leaves? If so, will they only look at my income?
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mary1110
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| Posted: Mon Nov 24, 2008 6:27 pm Subject: |
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They only look at the income of the person that actually files. You don't have to wait for him to leave to file, just don't list him when you do.
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DebtCruncher
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