Is BK right for me?
Ultimately, I know that only I will know if it is right of wrong for me, but if I could bounce some questions off you all, I'd really appreciate it.
I am going to be divorced. I make quite a bit more money than my soon to be ex, and I've assumed all this time that I would be taking on most of the marital debt.
I am upside down in my home by about 20K, and owe 5K in back property taxes. I am current on my mortgage, which is $1400/month at 8.5% interest. We have 2 vehicles that we are paying on, each is worth about 8K less than what is owed. He is paying his, and I am paying mine. The vehicle payment he is making is the only contribution he is making towards the marital debt (we live in a community property state).
I have been offered a job in which I will be making about $5500/year less than what I make now, and soon it will be difficult to continue to pay my bills as they stand now. I would like to get out of this house, it has way too many bad memories, it is too much for me to keep up, and it is very disheartening to realize that I am a long way from ever seeing any equity - I feel like I'm throwing good money after bad. Other than the home and back property taxes, there isn't really anything more that I could or would go BK on, except an unsecured personal loan of $17K which is also marital debt.
If I did go BK, and did not want to keep the house, would I have to pay the difference in what the house will get at auction? Is it better to file BK before or after the divorce? Is there anyway to protect the SS benefits that I receive for my children, or will that money have to go towards the repayment?
Thanks!
I am going to be divorced. I make quite a bit more money than my soon to be ex, and I've assumed all this time that I would be taking on most of the marital debt.
I am upside down in my home by about 20K, and owe 5K in back property taxes. I am current on my mortgage, which is $1400/month at 8.5% interest. We have 2 vehicles that we are paying on, each is worth about 8K less than what is owed. He is paying his, and I am paying mine. The vehicle payment he is making is the only contribution he is making towards the marital debt (we live in a community property state).
I have been offered a job in which I will be making about $5500/year less than what I make now, and soon it will be difficult to continue to pay my bills as they stand now. I would like to get out of this house, it has way too many bad memories, it is too much for me to keep up, and it is very disheartening to realize that I am a long way from ever seeing any equity - I feel like I'm throwing good money after bad. Other than the home and back property taxes, there isn't really anything more that I could or would go BK on, except an unsecured personal loan of $17K which is also marital debt.
If I did go BK, and did not want to keep the house, would I have to pay the difference in what the house will get at auction? Is it better to file BK before or after the divorce? Is there anyway to protect the SS benefits that I receive for my children, or will that money have to go towards the repayment?
Thanks!
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