Going through divorce need advice about Bankruptcy 7 or 13

Date: Wed, 02/25/2009 - 09:06

Submitted by anonymous
on Wed, 02/25/2009 - 09:06

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Total Replies: 3

I really need some advice from the experts on this board. I have about $70,000 in credit card debt which is in my name and I am still married although about to get divorced. Can I file bankruptcy and whichone is better chapter 7 or 13. I do own my house jointly with my husband and am leasing a car so what happens is the slate wiped clean and does it appear on my credit report for several years. If I am still married can I file on my own and it wont impact my husbands credit. What happens with any refunds from IRS in future years. I am in NYC so if anyone has recommendations for any bankruptcy lawyers pls let me know. I am juswt trying to hold it togther for the kids and he left me with no money and I used the credit cards as our only way of survival and now I just need to start afresh.
One last thing would I better off settling than declaring bankruptcy.

Thanks.

Perveen

Hi perveen40, If you want to file bankruptcy, I would wait un

Hi perveen40,

If you want to file bankruptcy, I would wait until the divorce is final. During the divorce, the court will declare in detail what debt is yours, what is your spouse/ex's debt, and what is mutually split.

With Chapter 7, the slate is wiped clean (except for student loans), so you will get your refunds. Yes, bankruptcy stays on your credit report from 7 to 10 years. But you can turn your credit situation around by responsible use of credit and get your score back up in no time at all. My mother filed for Chapter 7 three years ago and just bought a house. She got a credit union, saved some money, and then borrowed against it - because she flat out refused to get another credit card.

Although you may not qualify for Chapter 7, you can still file Ch 13. The income guidelines are the the 6 months before you file.

I hope this info helps.

chrys

lrhall41

Submitted by Chrys Henderson on Wed, 02/25/2009 - 22:08

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if most of your debts are cc's, you could use a settlement progr

if most of your debts are cc's, you could use a settlement program or management program and avoid bk. unless of course you have secured loans too that you cant pay either. but if you can get rid of the cc debt can you afford the other payments?(secured loans)

lrhall41

Submitted by love_my_things on Thu, 02/26/2009 - 07:03

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Perveen...there are many issues to consider...after the divorce.

Perveen...there are many issues to consider...after the divorce...do you have a source of income - job? or is it child support and/or alimony? Whether you file for 7 or 13 based upon your income and is determined by the court. A 7 will stay on your credit report for 10 years...a 13 for 7 years. Both will ruin your credit until you rebuild it.

If you file a Chap 7, and it is discharged, you get to keep your IRS refunds...if you file Chap 13 and are paying 100% back to creditors, again, you get to keep your refund...if you are paying LESS than 100% in your 13 BK, then the trustee will take the refund to pay your creditors.

IMO...you would do well to talk with a BK attorney for their advice in your situation. Most offer a free consultation.

lrhall41

Submitted by desperatelyseekingsanity on Thu, 02/26/2009 - 07:16

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