Here's my story...

[Canneree]

I married a man in March. That same Jan.he had cashed out $180,000 in retirement accounts...he bought 'our' home with most of that money. The rest, however, was spent playing in casinos. (credit card cash withdrawels) As he never kept cash on hand.

My name is not on the house title papers...he wanted to qualify 'on his own'. (he had sterling credit at the time)
Two vehicles...His Jeep (1998) and the Buick Century he bought for me. Which is still not in my name...he can't 'give' it to me until it's paid off...5 years.

Recently he (not so willingly) signed the jeeps title off for me...as it was part of our pre-marital agreement...that I would have a car in my name!

Now his retirement money is gone, we live off his $7 an hour porter job (I'm in school fulltime on a pell grant)...the credit card is maxed out with an outrageous minimum payment, extremely overdue.

He's convinced chapter 7 is the answer...and wants to get it started now.
Can a trustee take that jeep as an 'asset' even though it's in my name?
(nothing's owed on the jeep...buick is financed with a 'they saw him coming' car loan)

Thank you
Canneree

[miss puff]

Hi and Welcome Canneree!

Chapter 7 may or may not be the answer. YOu may have to give just a little bit more information. If he put that much money down on the house, you might have enough equity in it that would not be exempt and a trustee might want to take it. How long ago did he transfer the title to your name? I don't know how a pre marital agreement goes with the trustee but if someone is transferring assets right before filing that can get your case dismissed. I am assuming that because he makes $7.00 per hour that he would fall under the median income for your state.

Retirement accounts are exempt in bankruptcy so it's too bad he cashed his all out. $180,000 seems like alot in a retirement account to me for a $7.00 hour job. Has he had to take a cut in pay?

I don't mean to sound nosy, just not sure which direction to steer you toward.

Also, how large is the CC balance? I personally wouldn't "get started" on a BK for only let's say a $10,000 CC with that much equity in the house and car title free and clear.

Again, welcome. Please update and keep us posted.

[HRx]

You have options! The first thing you two should consider doing is consulting with a few BK attornies to see what they advise.

Good Luck!

[SinkingFast]

I married a man in March. That same Jan.he had cashed out $180,000 in retirement accounts...he bought 'our' home with most of that money. The rest, however, was spent playing in casinos. (credit card cash withdrawels) As he never kept cash on hand.

Recently he (not so willingly) signed the jeeps title off for me...as it was part of our pre-marital agreement...that I would have a car in my name!

Now his retirement money is gone, we live off his $7 an hour porter job (I'm in school fulltime on a pell grant)...the credit card is maxed out with an outrageous minimum payment, extremely overdue.

He's convinced chapter 7 is the answer...and wants to get it started now.
Can a trustee take that jeep as an 'asset' even though it's in my name?
(nothing's owed on the jeep...buick is financed with a 'they saw him coming' car loan)

Thank you
Canneree

The first thing we need to know to help you is the State you live in.

Hubby can file alone, on his own, and not involve you in the BK. If he does that, the Jeep may not come into play. I say "may" based on when he transferred the title to you. BK Court looks at all property transfers that have occurred within the last year prior to filing. The Court can even go back further than that if they feel they have cause.

If your Hubby recently transferred the car into your name, it could have the appearance of a fraudulent transfer to the Court. Like your Hubby was trying to hide an asset from the Court. Your premarital agreement to have a car in your name,........... Was that an oral agreement or something put down in writing??

The house is a big concern here. How much did he pay? Does he own the home in full?? Or is there a loan on it??

Ch 7 is Liquidation BK. If your hubby has significant equity in the house, Hubby's attny may not be able to protect it all from the BK Court.

Depending your overall debt and the amount of equity in your house, BK may not even be the right thing for you to do. You might seek a refi of the house and use the equity to pay off the other outstanding debts.

[Canneree]

Thank you all for answering...We live in Arizona. We just bought the house in Feb. for $157k...$32k down, so I don't imagine we have much equity at all yet.
He had just signed the back of the title for me two days prior to his decision to file chapter 7. We only have one credit card with a balance of $9,000. But they were mostly cash withdrawls. That's the part I would think would raise eyebrows...? Again...thanks...this is a great forum.
Oh, and he worked in a power plant in wyoming for 30 years, invested in some IRA accounts that all cashed out when he turned 59...hence the $180k.
His monthly retirement check is around $1,100 a month, so he works to supplement that. (He likes to work, one of those people)