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    Assets - married filing separately

    I am meeting with lawyer tomorrow and need to understand a few things, would appreciate any insight.

    Only I am filing (wife) as most of the debt is on CCs that are in my name only. 1st mortgage and car loan in my name only, 2nd mortgage in both our names. 401k loan in my name.

    Background: We live in Kansas in a suburb of Kansas City. We have been married 5 plus years and since getting married hubby has gone on disability and I was laid off for a year. Back at same company but making less, so we basically have made $30,000 less each year than when we got married totaling approximately $150,000. Yearly income was $120,000 now $90,000

    2nd mortagage=$30,000, 401k loan=$40,000 and cc debt $55,000

    Biggest question that I need to understand is regarding Ch7 vs Ch13 and assets.

    My husband has some sports memorabilia that he has sold to help pay down debt (his and mine) before we agreed that we were in over our heads...

    He has separate checking account and paypal account but in looking back over the last year, he has made transfers to the joint account from paypal and there have been debits to eBay. Last time was in June.
    Credits into joint account around $4,000
    Debits out of joint account around $3,000

    He still has some memorabilia left and would like to keep it as some is worth quite a bit. Just guessing but could be up to $10,000 total.

    Although we probably don't qualify for a CH7, but if we did, would his assets have to be included. This is stuff he's had since before we were married. Also, his monthly check goes to the houehold, but none of his proceeds from eBay do.

    I guess what I am trying to understand is even though I am the one that is filing, can they liquify his assets and is the income he makes outside what goes into the joint account included as monthly income on the schedules?

    Thanks again for any information.

    #2
    Well your not in a community property state based on where it says your from, that's good.

    As for his income there is a place to add in the amount of income he uses to help support the household on the means test. I was not a married filer so I hope one of the more knowledgeable in that area come back.

    401k loan is debt to yourself, I'm not sure that's dischargeable either . Maybe someone else knows.

    How much is your household monthly income?
    How much is the car payment?
    How much is the first mortgage payment?
    How much is the second mortgage payment?

    As for his sports memorabilia. Was it acquire during the marriage through the joint account?
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

    Comment


      #3
      How much is your household monthly income?
      $7500 gross, $4560 net (includes $800 per month on 401k loan thru paycheck withdrawals)
      How much is the car payment?
      $670
      How much is the first mortgage payment?
      $1600
      How much is the second mortgage payment?
      $420

      As for his sports memorabilia. Was it acquire during the marriage through the joint account?
      It was acquired before the marriage or from his proceeds on eBay, nothing from joint. He has made debits and credits into and out of joint but I can show that the money coming in either went to eBay for fees and payments or to credit cards with his name only

      Comment


        #4
        Well seems your car and house payments are within reason for your income.

        How many people in your household?

        I suspect you are over the median income unless your family is pretty large. On Oct 1st of this year the median income will increase for many filers though so it might be advantages to wait til after Oct 1st to file.

        Do you have any equity in the home?

        How about equity in the car?
        May 31st, 2007: Petition Filed by my lawyer
        July 2nd, 2007: 341 Meeting Held
        September 4th, 2007: Discharged and Closed.

        Comment


          #5
          How many people in your household?
          2

          I suspect you are over the median income unless your family is pretty large.
          Yes.

          Do you have any equity in the home?
          about $15,000

          How about equity in the car?
          only a year old, so no equity.

          Comment


            #6
            Okay looks like the home is not a problem in Kansas so long as you qualify for the homestead exemption.



            In fact Kansas exemptions seem pretty liberal for a Chapter 7 with the exception of a lack of a Wild Card.

            The credit card debt I see is what is hurting you the most, I'm assuming min payments around 1650 dollars a month and you can't possibly pay that.

            What you really need to do is probably see 3-4 lawyers in your area.

            Besides what I've asked here, you'll need your utility bills, insurance, taxes, food, clothing, charitable donations and other expeditures.

            Many lawyers will give an initial free consult.

            You know you'll fail the first part of the means test, but if you complete the rest of it you may qualify still for a Chapter 7.

            Do you have any debt that is nondischareable such as student loans, back taxes etc?

            You'd need to ask the lawyer about the 401k loan as well.

            If you go Chapter 13 your car is to new to cram down, though you might could strip the second mortgage from the house but I'm not sure. The problem is you'll be saddling yourself with some tough payments for the next 5 years.
            May 31st, 2007: Petition Filed by my lawyer
            July 2nd, 2007: 341 Meeting Held
            September 4th, 2007: Discharged and Closed.

            Comment


              #7
              Thanks for the info...wish me luck!

              Comment


                #8
                Good Luck
                May 31st, 2007: Petition Filed by my lawyer
                July 2nd, 2007: 341 Meeting Held
                September 4th, 2007: Discharged and Closed.

                Comment


                  #9
                  Ok, so met with the lawyer and he will do a means test and see if I qualify for a chapter 7, we make over the limit but we have high medical expenses. Anyways, I still want to understand, if I file chapter 7, would my husbands assets be subject to liquidation or just my assets? These are assets he purchased before our marriage. Thanks for any info

                  Comment

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