My wife and I have decided to file Chapter 7. I purchased the NOLO Book a few hours ago and have been reading non-stop. We live in NC which is a "Tenancy by the entirety" state, meaning if I file alone, they can't touch our home no matter how much equity we have. I don't think we have very much equity but could be due to our proximity to the lake and what the houses have sold for in the last year. I have big $$ secured debt about to be repo'ed (truck repod last week) but very little CC debt. She has loads of CC debt...over $60k all un-secured but no other debt. The crazy question: If I file and am successfully discharged (or even before I'm discharged), can she then file herself?
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Last edited by rancej; 10-18-2006, 10:06 PM. -
If they can't touch your house because of the Florida house exemptions , how come you don't just file together? You didn't say why you wanted to file seperatly... -
If you file seperately, you'll just have 2 sets of attny's and filing fees. Attnys charge the same whether you file solo or joint. And the filing is the same. That's a chunk of change you'd save if you just file together, jointly.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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First...what do you want to accomplish by filing bankruptcy in the first place, i.e. what do you want to have happen with the truck.
Second, there is almost no benefit to a married couple filing separately. Also note, federal law now preempts state law when it comes to the home equity exemption...Federal law caps how much of an exemption you get.
Third...the exemption rules don't change because you file separately, you will receive the exact same protection if you file together as you would if you filed separately.Comment
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Are all exemption limits listed for state per couple or per person? Our state allows $3000 for all of our household goods, (which is enough for us) but technically are we allowed $6,000? (being $3,000 for each)Comment
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The answer is, it depends...
Some states allow doubling up, some don't. And some states allow doubling for certain exemptions, but not in others. For example, you may be allowed to double up on the automobile exemption, but not on the housing exemption. It just depends on your state law...and sometimes that answer is not even contianed in the exemption statute.
Don't quote me...but I think the default rule is that you are allowed to double up unless the exemption states otherwise.Comment
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Well, I am not sure how well tested the Tenancy by the entireity is under the new law since the new law is barely a year old...so you are probably treading in nearly uncharted waters. However, whether tenancy by the entirety works for you depends on the nature of the debts, if any of the debts you intend to throw into bankruptcy are or could concievably be joint debts, then tenancy by the entirety is of no use. You might furhter have a problem in so far as part of the federal homestead exemption preempts state law...under the old system, bankruptcy law would defer to state law on property issue, but now that federal law partially preempts state law with regard to the homestead, you may run into problems.Thank you all for your thoughtful replies. To answer your questions: I'm afraid we have too much equity in this house or enough that they would take it. According to the NOLO book, They can't touch a house in a "Tenancy by the entirety" State. They view the home as the property of the marriage, as long as only one of us is filing.
Although you are probably going to be ok, you should make sure you get an attorney that will understand the ins and outs.Comment
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I live in NC and this is a tennant by the entirety state. HOWEVER.... you and your wife must be listed on title that way or it is a no go. I am filing tomorrow and owned my home prior to mariage. After marriage I refinanced the home and my wife signed some stuff, but... she was never added to the deed. So, I am not protected in that regard. Are you???Comment
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