Need Help with Ch13

[BKINVA]

This will be probably be a long post - your input is greatly appreciated. Here's my situation...Almost 5 years ago I moved in with my boyfriend, we committed our love for a life time and simultaneously joined our income into one joint account. He refinanced his home and I was added by a gift deed and signed all the loan docs (did not qualify). We now own a the home together. 1 year later we obtained a $56k equity loan and paid off credit cards and continued upgrading our home. We purchased vehicles where we co-signed for each other. Unsecured credit cards remained separate. Credit card debt is grossly unmanageable now. A quick glance in the review mirror is a snapshot of 2 individuals (recently divorced after 20+ year marriages) that moved in together and unconsciously tried to re-create the life that was previously lost, got caught up in the false rising home value and continued to spend until one day we realized we were out of control and couldn't afford to pay all the debt that the credit card companies believed we qualified for and we knew better but didn't behave responsibly - emotional spending. When we hit the finance wall, we also hit the relationship wall. We both are going to file BK and split. The problem is that he qualifies for CH7 and my gross income exceeds the median income limits so it's CH13 for me. I had a consultation with a BK attorney this week and he suggested I wait a few months to file due to high overtime at work during the past 6 mos - try to reduce my gross income so my payment plan won't be based on past OT earnings. I do not want to keep the house, I'm going to move out. My attorney said to surrender my interest in the 1st and 2nd when I file. My boyfriend has his attorney appt. on 12/16 and would like to keep the house (his home for 17 years) and his vehicle, dump the 2nd (home value barely secures the first of 160k) and his unsecured credit card debt under CH7 - The question here is, as the co-borrower on the home and 2nd, under CH13 can I be removed from the Mortgage under CH13 or will it be included in my payment plan? He doesn't qualify to refinance to remove me from title and I don't know any other way. I have been sick to my stomach for weeks, I don't know any other way at 51 yrs old to get my life back. We will live together until we both can afford to put a roof over our head and eat. I'm scared to death. Thank you for listening to me...

[reener]

first, what State are you in

second, when you say you were gift deeded onto the mortgage but you didn't qualify for loan, can you explain...

second loan is secured by the home so it cant be dumped, as far as I know

and how is your relationship?? how long could you live with him in the home?

[Flamingo]

You guys were both on the rebound after divorces and just didn't see it all coming and happening and were enjoying the moment. However, that horrid fact of reality always creeps into the picture somewhere and rudely slaps you in the face. You were all just living beyond your means and maybe saw it but lived in denial.

Many people in this economy are living together and holding off on divorces and splits. You guys should come to some sort of agreement to at least help each other out until you get all this straightened out and back on your feet. Maybe if you get beyond the finances you will find you still have a relationship. Best of luck to you both.

[BKINVA]

Thanks for replying. I live in Virginia. The Deed I have states "This Deed of Gift" when he refinanced it was a type of conveyance where it went from him to the both of us. The loan officer said I could be added and didn't have to qualify since I was a Fiance (at the time I was). Wells Fargo included me with all loan docs but didn't qualify me. I'm not on any of the docs such as the application or anything, just a co-borrower name. Weird huh? This is really confusing since we are not married, he's filing CH7 and I'm filing CH13 - he wants the house, I don't. Our relationship was deteriorating prior to the over spending - yes we were in denial. I can stay as long as I need to, we get along very well and still are close. But through this process much may be damaged. We were unable to find an attorney that would represent us both, so we have to obtain separate attorneys and we hope we have made good selections. The life challenges I think are straight uphill from here. I truly hope BK really does give us a fresh start...if Senate Bill 3690 passes, it could really help, but until then I'm afraid of the outcome

[relief13035]

You can't do a lien strip on a 2nd in Chapter 7 - believe me I tried!