New to the board - A few questions...

[Mixelplick]

First, I'd like to say that after reading through this board over the past few weeks, that it has been extremely helpful in reviewing my own situation. It's nice to see people helping each other out! My situation, and questions:

My wife, 3 children, and I have lived in Florida for the past few years, prior to that, we moved around, due to job reasons. My wife does not work, and we rely on my income alone (84k). We have a house with two mortgages, and it has been a struggle to keep up with all my debt. Quite honestly, I have made a rash of poor financial decisions over the years, and have been living beyond my means to maintain our lifestyle. 4 months ago, I was laid off from my job, and, with little time to spare, took a similar job in Georgia (212 miles away) in order to continue providing. With that, I picked up Georgia state taxes, as well as a 5k paycut. Money was tight before this. I thought that I would be there short term, until I was able to find something close to home. Despite my efforts, I have been unable to do so. I have now been apart from my family for four months, going back and forth on weekends, as my wife is not crazy about moving to this area, especially if it is short term. I spoke to an attorney about my situation, and he stated that because of my income, chapter 13 is my only option. He made it seem like a breeze, and I felt like there was some relief in sight. I began studying up, however, and had several concerns:

1. I went back to school, to finish my degree. Additionally, I took student loans over excess, to subsidize my bills. I have 2 classes left, and a student loan dispersment in a few weeks. This is my last dispersement prior to graduation. Is that looked at as income, even though it is a loan?
2. I have two vehicles that I've paid on for over 2.5 yrs. However, I do not think that my older car will make it though a 5 year plan. My wife is able to get a new vehicle in her name, but I would have to make the payment. How is that looked by the trustee.
3. Although my residence is in Florida, will they have issue because I work in Georgia?
4. My Georgia job has had my in temporary living for 4 months. Although it is appreciated, they have been "grossing it up", and adding it to my check as income, while paying a chunk as taxes, to offset my liability. I signed an agreement that, if I left prior to 1 year, I'd have to pay back a pro rated portion of the relocation. First, could the relo money be included in the bankruptcy. Second, although it is not income I see, would they still count that against me when setting up my plan? When it is all said and done, it will probably add 30k to my income, although my taxes paid in is rather large, as well.
5. If I surrender my house, do I have to leave right away? Does it go through foreclosure, and are we released from the deficit? I have been trying to sell my home for the past 3 months, with no success.
6. My wife is not filing with me. All debts, including the house, are mine. How does this factor in with assets and exemptions?
7. Thanks for the help!

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[lrprn]

I took student loans over excess, to subsidize my bills. I have...a student loan dispersment in a few weeks. ... Is that looked at as income, even though it is a loan?

No. Student loans are just that - non-secured loans which unfortunately by law cannot be discharged in bankruptcy except in very unusual circumstances.

I have two vehicles that I've paid on for over 2.5 yrs. However, I do not think that my older car will make it though a 5 year plan. My wife is able to get a new vehicle in her name, but I would have to make the payment. How is that looked by the trustee.

If you are headed into Ch 13, most trustees understand the need to replace an old vehicle before filing. Whose names do you plan to put on the title - both of yours or just your wife? Whatever loan amount and APR you get for the new vehicle you will live with until the car is paid off in full. The trustee may look more kindly on a solid, reliable "new to you" used car than a brand new one purchased right before filing.

Although my residence is in Florida, will they have issue because I work in Georgia?

It won't matter. I live in the state we filed in and work across the state line in another state. This won't be a problem.

My Georgia job has had my in temporary living for 4 months. First, could the relo money be included in the bankruptcy. Second, although it is not income I see, would they still count that against me when setting up my plan?

You are going to need expert legal advice about this situation. The problem is that your employer is adding the extra to your paycheck making it look like income. It may be considered similar to a bonus rather than more like per diem payments. An experienced bankruptcy lawyer who knows how your bk district and trustees have treated situations like this in the past can sort this out for you.

If I surrender my house, do I have to leave right away? Does it go through foreclosure, and are we released from the deficit?

If you surrender the house as a part of your bankruptcy, then the lender will send a formal request to the bk court to release them from the automatic stay so they can foreclose. See here for some details about foreclosures in Florida - http://www.realtytrac.com/foreclosur...rState=Florida . This is what happens when bankruptcy is not involved, but some of the events will still take place in bankruptcy as well.

My wife is not filing with me. All debts, including the house, are mine. How does this factor in with assets and exemptions?

Since Florida is not a community property state, then as long as your wife is not listed as a co-signer or co-owner on any of your secured or non-secured debts, and the deed to your home and titles on your cars have only your name listed, you should be ok to file solo. Your wife's income will still be included with yours on the Means Test, but any part of it that isn't used to support the household will be backed out later in the forms.

Just curious....you don't have to answer if you don't want to....but why isn't your wife going to file with you?

Welcome to BK Forum - glad you are finding our little oasis of bankruptcy happiness helpful! Keep asking questions - we'll help as much as we can!

[Mixelplick]

Thanks lrprn! To answer your question...

...I am the sole bread winner in the family. My wife quit working about 8 years ago, when my daughter and youngest son were born. She has stayed at him, and worked hard at getting the little ones off on the right foot, so to speak. She filed chapter 7 about 6 years ago, and has decent credit right now, although nothing to write home about. She has no income, and is not a co-signer on any of my things. I did not see the need for her to file, as I wanted to try and preserve her credit, if possible. Is there a benefit to having her file that I don't see?

[lrprn]

Is there a benefit to having her file that I don't see?

No, not under the circumstances that you describe. As long as your wife's name is not included on any of your debts, titles or deeds, you are fine to file alone. Keep us posted on what you decide to do and what you find out from your lawyer interviews. Hang in there!