I look like I don't have any assets.

[ilikchikin]

Hi

I'm debating whether or not to file BK. I'm facing a possible judgment and was wondering which was worse, BK or judgment. There is also the possiblity of another lawsuit.

I have a question about the house and other assets. Here are the facts:

~I'm married but will file separately.
~With my husband's income, I'm $1000 over the median income.
~I have a car that is paid off but is just sitting in the driveway(it's a piece of junk), I drive the company car.
~The house we live in is in my Mother in-law's and husband's name.
~My husband and I have bad credit, we couldn't get a home loan so the loan is my Mother in-law's name.
~My husband and I make the mortgage payments.
~The only other asset I have is my wedding ring/ engagement ring.
~We have some high end electronics.
~We also have some very nice furniture that we bought at cost because we knew someone who worked at a furniture store. We paid half of the retail price.

Everything is a joint asset. Is that taken into consideration when you file? Can the house be touched?

[SinkingFast]

Filing BK separate is kinda like filing taxes separate.

Hubby's income will be included to start with then backed out later. So Hubby's income won't be a consideration of whether you're over or under the Median. From there, you'll have to figure your part of your monthly expenses.

An attny can best advise you about how to figure your portion of the household goods. But remember,......... It's not what you paid when you bought,......... It's what you would pay for like items. Where would you buy an 8 year old sofa?? Yard sales, garage sales, 2nd hand furniture stores.

We can help you better if you tell us your State. Some States allow for garnishment of wages, some don't.

As far as Judgements and Liens,......... Sounds like the only property you own that a Creditor could attach is your car. Before Creditors go after you, they check you out. They pull your Credit to see who you've been paying an how much. They check the Court House to see what property you own. They know before they start whether or not it's gonna be worth their legal fees to even come after you.

[ilikchikin]

Thanks for responding.

I live in Fl.

When the lawsuit was initiated that is exactly what I was thinking. I don't have anything. They either know something I don't know, which is very likely, or they just didn't do their homework.

My husband owns some deli's here in town. They aren't doing very well right now and all the bills are late. Every year we file our taxes the company always shows a loss. Also my husband doesn't take a huge salary, he underpays himself and he doesn't take bonuses. If the delis profit it goes towards their own bills.

I hope they didn't think they could tap into that.

The funny thing is my Father in-law hates the government. Everytime he gives me money, it's cash. I never deposit the money he gives me, I hide it.

[lrprn]

Welcome to BK Forum, ILC! Glad you found us!

I'm facing a possible judgment and was wondering which was worse, BK or judgment. There is also the possiblity of another lawsuit.

The right answer in your situation depends on your income vs your debts and living expenses and how everything plays out on the required Means Test.

Filing alone when married can be tricky. You have to research each debt to make sure the debt is truly just yours. Anything that is jointly owed, if you file, the creditors will come after your husband to pay the debt.

In most situations when bankruptcy is a real possibility, filing bankruptcy has the advantage of wiping out the debt for a fresh start. Judgments by multiple creditors sap your financial strength, and can go on for years and years. The state of Florida doesn't garnish the head of household's income. However, if you aren't the head of household, up to 25% of your wages can be garnished until the amount named in each judgment is paid off. Even if your non-secured creditors don't go for judgments, they will pile on increases in APR and late fees as you eventually aren't able to pay the full payment to the point your debt becomes essentially impossible to pay off. It's a downward spiral that often ends in bankruptcy anyway.

The best thing to do is make appointments with 3-4 bk lawyers in your area for free consultations. After meeting with them, you will have a good idea if filing bk is the right thing for you to do or not. now?

Everything is a joint asset.

Then when you file, your husband will be responsible for paying on those assets so you can keep them in the family.

Can the house be touched?

Because you live in Florida, no. If your name isn't on the deed or as a co-signer on the loan, it won't matter anyway because if that's the case, the house doesn't belong to you anyway.

Sorry to be so long-winded - hope this helps a little. Good luck - keep us posted on what you find out as you meet with lawyers, ok?