Bankrupcty - The great Unknown

[photojourno]

I will be looking for an attorney in the area this upcoming week, but I felt like registering to these forums would be really helpful and it also prompted this note, hoping others have gone through something somewhat similar:

- Currently separated, 2 kids (6 & 2yo)
- Was working for wife's family biz, but whaddayaknow I was laid off when I moved out.
- Me and my wife are cosigners on the home, which we are still paying (been there only 3 years).
- I have my own little photography business (City License), which has spent me a lot of money, and never really produced enough to lift itself out of the ground.

I have more debt than I could remotely pay, given the fact that I am still unemployed and that even if I got a job, it would not be the same salary as it was five months ago (when I got laid off).

Approx 15k in one Ccard
Approx 8k in another Ccard
I have a 5k Overdraft line of credit through my business Acct
I have three retail store ccards (each for 3k) that have max'd out.
I have one Monthly car payment (downgraded for a less gas consuming vehicle 3 months ago).

Because I am separated I am paying for my own apartment rent as well.

I do want to pay off as many things as I can, but right now the scenario is grim, which is a stark understatement of the situation.

Here are some things that have been troubling me lately (Just sharing, if you have insights do post, otherwise these will be discussed with a lawyer soon).

- Will my filing for bankruptcy cause the home I currently co-own with my wife to be foreclosed on?

- Will I lose my vehicle for sure?

- What happens with assets that I do own?... Most of them are small things, like a $200 guitar, a $200 bass, a $500 drum set, and probably $5000 in Photographic equipment (Cameras, lenses, accessories) realistically $3k if I sold it. Are all those liquidated?

I am in the hiring process for a local county position, but even then the salary vs the payments would exceed 50% of my income. And as I move towards a divorce (alimony, etc), things could get even more complicated.

A part of me thinks a Ch 13 would be best at this point, for how little I have researched.

Anyhow, recently separated, unemployed, going towards divorce and bankruptcy, feels a lot like a colonoscopy procedure with a two by four or something.

Just gotta take it step by step, and hope the clothes on my body do not become liquidable assets.

--MJ

[Flamingo]

First, welcome aboard and second, since your situation is giong to be a bit more complicated than the average BK inasmuch as you are now separated and I am assuming going to file for divorce, there are going to be lots of issues since the property (and credit cards?) are in joint names. I would highly suggest at this point to talk to an experienced BK attorney to advise you as to the property situation and what you may or may not need to do prior to filing.

It's not going to be easy and may be one of the worst things you will have to go through since it is coupled with a separation/divorce - but do get good legal advice to protect yourself, your finances and assets.

[Phillymanhere]

Yeah, you need to get to some lawyers. Schedule initial consultations with 4 or 5 of them. These are usually free. You can do a search of this forum for suggestions on how to find a good lawyer. Visit 4 or 5 and hear their various responses to your situation, figure out who you trust, who seems sharp, who seems thorough, who you connect with ... and hire them.

The good news is you don't have to give up everything in filing bk. So those little items you put down. You can probably save those. As for the house, that's beyond my knowledge as I'm not a homeowner. I do know this varies by state. Different states have different exemptions. Florida exempts all houses from what I can remember. But other states are not like that. This is for a chapter 7.

For chapter 13, as I understand it, people can save a lot more assets, including houses.

Visit the attorneys; that's the best way to get informed about the law in your area and how it pertains to your situation. You'll feel better after doing so; you'll feel more informed and probably less shamed.

[JRScott]

I would recommend talking to a divorce lawyer and a bankruptcy lawyer. Perhaps a few.

I would stop paying on all the credit cards now. From the sound of it you can't afford to pay them anyway.

As for what you can save need to know what State you are in.

It might be advisable to get the divorce first so that you settle who owes what first then filed bankruptcy. I'd talk to some lawyers though.

[AngelinaCatHub]

You stated you have two children. Are you the custodian? JRScott is right, this complicates things as child support cannot be bk-ed. About alimony, in this day and time it is not often given as both spouses generally have to work (to pay income taxes). How “friendly” are you with your wife. Can you sit down and civilly talk about such things as does she want the house or purchase your half of it? Or sell and split? You own half that house unless a Judge interferes. Since you worked for your in-laws, it stands to reason you would have been laid off. Can you get Unemployment? Keep yourself tuned in to this forum if nothing more than to ‘air’ and get moral support. You have a tough row to hoe. ‘Hub

[stressin]

I just wanted to agree with those who have said to start seeing attorneys. I saw two, and decided to retain the second one. With all the questions I had swirling around in my head it was a HUGE help to talk to someone who knew her stuff and could answer all of these specific questions for me. I am working on my paperwork and preparing to file in the next 2-4 weeks. My attorney was very reassuring and knowledgeable, and I feel much calmer after retaining her.