Chapter 13 by wife that is not on the loan??

[Bankrupt]

Hello ladies and gentlemen,
I would like to apologize ahead of time for my long-winded thread. I tried to give as much info as I thought necessary to better understand my sit uation. I would appreciate any suggestions and advice.

My situation is as follows:

• I currently own 2 houses that are in foreclosure.
• My secure debt is over 1 mil so I do not qualify for Chapter 13.
• I filed Chapter 7 on the 21 of March on my own.
• Primary residence Deed of Trust is a Joint Tenancy with my wife(all done in escrow) when my loan was acquired, however the bank specifically excluded my wife from the loan because of a previous(2001) Chapter 7 bankruptcy. The paperwork does not state this it just omits her from any of the loan paperwork. When she signed the Deed of Trust in escrow there was a note showing that she is a "NON-OBLIGATED SIGNER".
• Second house was purchased as a "married man as his sole and separate property" and is stated so on the Deed of Trust, again I am the only one on the loan.
• I recently consulted an attorney who suggested getting my Chapter 7 dismissed and then filing a Chapter 13 on my wife's name. He said the fact that she is not on either of the loans, with the second house being my sole and separate property, will put her under the threshold of the secured debt celling.

My questions:

1. Does my wife have protected interest in our primary home since she is on the Deed of Trust but not on the Loan.
2. Does she have any obligation towards this loan since she was excluded from the loan application.
3. Does my wife have any obligation toward the property purchased as a "married man as his sole and separate property". She is also not on this loan.
4. Does the attorney's strategy make sense.
5. Is a $4000.00 charge for a Chapter 13 reasonable in Orange County CA.

Thank you again for any help.

Regards,
Bankrupt

[lrprn]

Welcome to BK Forum, bankrupt - glad you found us!

You have a challenging situation, so I'm glad to see that you consulted a bk lawyer. Just wondering why you decided to file pro se (without a lawyer) in the first place? You really need sound legal advice with these high-value assets involved.

If I were you, I would make appointments for free consultations with several more bk-specialty attorneys with experience dealing with high-value assets in your area as soon as possible. Don't take the word of one lawyer when you have so much at stake.

California has a unique bankruptcy exemption structure - http://www.bankruptcyinformation.com/CA_exemp.htm , and with a pro se, previously filed Ch 7 currently on the books that may have to be converted to a Ch 13, the $4000 fee doesn't seem unreasonable. Still, meet with several more lawyers before deciding what is the best thing to do in your unique situation.

Good luck to you - hope everything works out. Keep us posted on what you find out, ok?