Ch 13 ?

[whtsamada]

I have creditors threatening to sue and I'm concerned that filing ch. 13 may be the only way that I can prevent a judgement and a lien on my house. My question is how does ch 13 work when only one person in the marriage needs to file? My dh does not have any debt. All of my debt is from before we were married. The home is in both our names. We live in TX.

Thanks.

[lrprn]

I have creditors threatening to sue and I'm concerned that filing ch. 13 may be the only way that I can prevent a judgement and a lien on my house. My question is how does ch 13 work when only one person in the marriage needs to file? My dh does not have any debt. All of my debt is from before we were married. The home is in both our names. We live in TX.

Yes, one person in a marriage can file Ch 13. However, you live in Texas which is a community property state - that can complicate things. It's good that all your debt is from before you are married - that means you could file Ch 13 alone and not saddle your husband with the portion of the debt you could wipe out in Ch 13.

We need to have a little more information to help you sort out what your options might be.

If you look back the last six calendar months, how much income from all sources did you make? How much income from all sources has your husband made? Do you have children or other adults living with you? Besides your house, do you have other assets you want to protect (cars, other property, etc)? Have you filed bankruptcy before, and if you have, which chapter and when? Have you talked to any local bankruptcy lawyers yet?

Glad you found us, whysamada - we'll help you sort things out as much as we can. Welcome!

[whtsamada]

details

Thanks for the quick response. Let me try to answer your questions.

Last 6 months income for me - $21,000
Dh - $25,000

We are expecting a child in October.

We both have cars that are financed.

Neither of us have ever filed bankruptcy before, and I haven't spoken with a lawyer yet.

I went through credit counseling about 3 years ago and at that time they told me they didn't really have any advice other than get a 2nd job. I tried doing one of those debt management programs about two years ago. I was sending in huge monthly payments and they weren't even making a dent in the balances. I tried to work out something with individual creditors, but they always wanted unreasonable payment plans. I just felt like I was sending more and more money, but with interest and fees I was getting deeper and deeper in the hole.

I haven't received any paperwork from the courts yet, but I know that one of my creditors (a credit union visa) has filed papers with the courthouse already. I just don't know what to do. I'm very stressed.

[SinkingFast]

You don't say how many children you have. But if you claim 1 child,............ You're way under the Median for a Household of 2 in Texas. $48,849/year. You could possibly be looking at filing a Ch 7.

Have you tried the Means Test Calculator to see where you might possibly land??

http://www.legalconsumer.com/means-t...ator/index.php

Just plug in your info and see what result you get. Might help you with screening attnys as you Consult around.

[lrprn]

Last 6 months income for me - $21,000 Dh - $25,000 We are expecting a child in October.

If your combined last six months income is $46K, then your combined annual income is $92,000 which is WAY above the median income for a 2-person family in Texas. (You can't count the baby as a family member until it's born.) If there aren't any other children or adults living in your household, then you are very likely looking at a Ch 13 filing, not a Chapter 7.

Your experiences with debt management are very similar to members here that have tried it. Usually by the time we try these programs to avoid bankruptcy, it's just too late.

I haven't received any paperwork from the courts yet, but I know that one of my creditors (a credit union visa) has filed papers with the courthouse already.

Credit unions are notorious for moving quickly to get garnishments and liens against you. When you file, this will stop any court action by your credit union unless they already have received a judgment. Since in Texas your wages can't be garnished, the only action they could take against you would be to get a lien against property. If that happens (and I'm not sure that a credit card can get a lien against property anyway), then you just list the judgment in your bankruptcy and then after the bankruptcy closes, you file a claim with the court to wipe it out

Since it looks like you are headed down the Ch 13 route, it's best to wait until after the baby arrives if you can so that you can include the baby's costs in your filing.

You need to start interviewing 3-4 bankruptcy lawyers in your area - most give free initial consultations. Trying to file a Ch 13 case by yourself without a lawyer, especially with a potential judgment involved, is a very, very bad idea.

Hang in there - keep asking questions - we'll help you as much as we can!

[lrprn]

You're way under the Median for a Household of 2 in Texas. $48,849/year.

SF, the income figures that the OP gave us are for just six months. $46,000 for six months gives them an annual income of $92,000 which is well above the median for Texas for a family of 2 or 3. We're so used to seeing annual incomes....this one was easy to overlook.

[whtsamada]

Thanks for the info guys! I knew I wouldn't qualify for chapter 7. I'm kicking myself for not taking care of this 3 years ago when I would have. I just kept thinking I would be able to catch up eventually.


lrprn - Where could I find out whether or not they could even get a lien for unsecured debt? I've tried googling, but the stuff that comes up doesn't seem to answer the question. I'm not sure if there is a site where info like this can be found.

[lrprn]

Where could I find out whether or not they could even get a lien for unsecured debt?

Visit the courthouse where the creditor may have filed the case. If it's out of state, contact them by phone. Ask if a case has been filed recently listing you as the defendant and your creditor as the plantiff.

Since you haven't been notified as yet, there may be no case to find. If all this creditor did was threaten you that they were going to file a case, it may have been just that....only a threat.

[SinkingFast]

SF, the income figures that the OP gave us are for just six months. $46,000 for six months gives them an annual income of $92,000 which is well above the median for Texas for a family of 2 or 3. We're so used to seeing annual incomes....this one was easy to overlook.

I was thinking if the OP filed solo.

$21K x 2 = $42,000

If there are more children in the Household and the Poster claims 1 child for BK purposes, then she's below the Median for a Household of 2.

Filing alone with 1 dependent, the OP may be able to do a Ch 7. But you are right, Lrprn. They cannot file a Ch 7, Joint, with their combined incomes.