New Here...scared and have some questions...

[jsparkles]

Hello everyone,

I have been lurking here for a few weeks, and think it's about time I introduce myself. Never did I think I would be in the situation that I am in. I've been so stressed out, and wish I could just hide under my covers until it all goes away. But it won't, so it's about time to face everything.

My husband cosigned on a business loan a few years ago. Well, the business went under, the other cosigner went bankrupt, and we've been left with the burden of the loan. We've been building even more debt trying to make the monthly payments and have decided that we just can't do it anymore. So we are going to file for bankruptcy.

I have a few questions, if any of you might be able to help me....We are trying to figure out if my husband can just file, or if I must file also. The business loan is in his name only. We also have two credit cards. They were both taken out in his name, but I have a card under his account to use.

We want to keep our house. We owe 160,000 on it. We are taxed for the amount of 208,000, but I just had an appraisal done because I knew that was too high, and the appraisal came back at 180,000. The Utah homestead exemption amount is 20,000. So if the appraisal is used, the exemption of my husband alone covers the house without me having to use an exemption.

Do I need to file as well? We had one attorney tell us that if everything is in my husband's name, I don't need to file if we don't need my homestead exemption. We had another attorney tell us that in Utah, I am liable for my husband's debt so I would need to file as well. My credit score is 744, so it would be really nice if I didn't have to file. Then at least one of us will have good credit.

I'm just so confused about all this. We want to file this week, and I just don't even know where to turn. You all are so supportive of each other and it is so nice to see. We're not telling anybody about this, so I really don't have anyone else to talk to.

[drowning123]

First of all, welcome. I was in the same boat a little over a year ago and found this forum. They helped me through a very tough time in my life. The expert advisers will soon come along to answer all your questions, but I just wanted you to know that someone has read your post and will be here to support you.

[IamOld]

Welcome jsparkles! To be honest, I don't have answers to your questions, but before the day is done, you will have answers from wise people here!

Meanwhile, as drowning said, welcome, and best wishes....we are/were all scared...believe me!!!

[frogger]

We want to file this week, and I just don't even know where to turn. You all are so supportive of each other and it is so nice to see. We're not telling anybody about this, so I really don't have anyone else to talk to.

Whoa cowgirl!!! You don't want to file this week.

You need to start gathering up all of your financial records, start reading all of the sticky notes here and asking questions, and start interviewing bk attorneys once you have done that.

Take time to plan....

[jsparkles]

Thank you so much for your kind words. I do think we are ready to file...I hope. I have all of our financial statements gathered - bank statements, tax returns, pay stubs, property tax info, car info, etc. We are taking the credit counseling class tomorrow. We have met with three different bk attorneys and have a second appointment with one we felt comfortable with on Friday. He has been doing bk for 20 years and seems really knowledgeable and thorough. I may be missing something, but I feel ready to file! When we got the appraisal back on our house today, which showed that our equity is exactly what the homestead exemption is for one person, I just started to question whether I needed to file or not. I know that our attorney will answer these questions, I'm just getting ants in my pants and want to try to get some answers before Friday.

I'm sorry for the rambling. I'm not talking to any friends or family members about it, and my husband is out of town a lot with work. So I feel like I'm driving myself mad, at home all alone with these crazy thoughts running through my head. It's so nice to come here a have a soft place to land, and a place where people are supportive and not judgmental. I really appreciate it, and I hope to return the favor.

[lillymarlene]

Hi jsparkles, welcome. I filed last October, but for what it's worth, sometimes it takes a little time to get to that point. I retained my attorney (paid a 50 % deposit) in August and started giving him the requested paperwork. Then, probably since I have a small business it became somewhat complicated. I had to send him more documents and have a few more "telephone conferences." Then the first "draft" of my petition was not quite as I wanted, and another one had to be drafted. Your husband (and you if you file) most likely will be told to stop using credit cards, or accounts at least 90 days in advance of filing.

You probably also will want to take your time, to make sure everything is done right. But I know what you mean, sometimes it's good just to get the ball rolling. Good luck.