AHHH Help

[tsmith05081982]

Ok.. well long story short my wife and I are separating... She has quit her job.. which was the only source of income we had and she has moved back to MS with her mother.. And i am still her in AL atleast until the 341 meeting.. Then i will be moving back in with the parents also..

My question is we are only reaffirming one debt.. A car loan of 242 a month which is in my name and a friend of mines name... He pays the loan.. Do i face any problems seeing how she left her job and moved home.. Also can i close our joint checking and open my own. or is that best to wait till after the 341 meeting.. It is in 2 weeks...

Thanks.. Very nervous...

[lrprn]

My question is we are only reaffirming one debt.. A car loan of 242 a month which is in my name and a friend of mines name... He pays the loan.. Do i face any problems seeing how she left her job and moved home.. Also can i close our joint checking and open my own. or is that best to wait till after the 341 meeting.. It is in 2 weeks...

A couple of questions for you first, tsmith...

- Are you and newly separated wife filing together or are you planning to file alone?
- Are you hoping to file Ch 7?
- Is your wife listed as a co-signer on the car loan? Is her name on the title?
- You mentioned all your income is through your wife...what is your income? Are you currently employed?
- You mentioned your friend is making all the car payments. Is his/her name on the loan? On the title?
- What state are you in?

If you can answer these, that will help us help you better.

[tsmith05081982]

Hey..
We just separated yesterday... we are filing together.. Not planning divorce or anything
Yes we filed for CH 7
No she is not on the loan i am reaffirming.. The car loans that she is on we are surrendering.
I lost my job that was why we filed.. no i am not employed.. my wife was employed here in AL but just left her job to move home with her mom..
My friends name is on the loan and the title..
I am in AL.

[lrprn]

Hey..We just separated yesterday... we are filing together.. Not planning divorce or anything

So sorry to hear you two are living apart, tsmith. Hope everything works out all right.

My friends name is on the loan and the title.

Is your name on the loan and/or title as well? If it isn't, then you don't own the car and don't have to list it as an asset. You also don't have to worry about a reaffirmation agreement either. The trustee can't take what isn't yours. You also can't list the car payment on your expenses either.

Of course, if your name is on the car loan as a co-signer, you will have to list it as a debt when you file and can include the car payment on your expenses. And if your name is on the title as a co-owner, then you will have to list it as an asset which can make your half vulnerable if you can't protect your half with exemptions.

If you do have to list the car when you file, Alabama has no specific car exemption but does allow $3000 as a wild card exemption that can be used to protect the car - http://www.bankruptcyinformation.com/AL_exemp.htm

How much is what's owed on the loan compared to the true current market value of the car (the equity)? Is it more than $3,000?

[tsmith05081982]

Yeah..the loan is in my name and his name... We owe way more than the car is worth... We owe like 12000 and it is worth like 8000 .He doesnt know i even filed BK.. It wont affect his credit will it.. Will it show BK on his report since he is not filing...

What about the wife thing do you see any problems with that... We are still married and she doesnt have another residence still using mine.. She is just not staying there...

Also can i close our joint cking before the 311 meeting that is in 2 weeks.. or should i just wait??

Thanks yall are very helpful here

[lrprn]

He doesnt know i even filed BK.. It wont affect his credit will it.. Will it show BK on his report since he is not filing...

Your friend is going find out you filed any day now because as an "interested party", I believe he'll receive a notice in the mail from the bankruptcy court that you filed. The notices are probably in the mail now. If you want to keep him as your friend, get on the phone or go over and tell him tomorrow.

You are filing, not your friend. It shouldn't show up on the loan tradeline on his credit report, but mistakes do happen. Make sure he checks all three of his credit reports for several months after you file and dispute any rating that is IIB or charged off immediately.

Since you and your friend are co-signers on the loan, your friend will be held responsible for the entire loan if you don't make the payments after filing.

What about the wife thing do you see any problems with that... We are still married and she doesnt have another residence still using mine.. She is just not staying there...

Since you and your wife plan on filing jointly, how much income from all sources during the last six calendar months did your wife make? How much income did you make from all sources the last six calendar months before losing your job? Do you two have children? Just want to see if combined, your incomes are still below the Alabama median income for your family size so you easily qualify for Ch 7.

Also can i close our joint cking before the 311 meeting that is in 2 weeks.. or should i just wait??

It would be better to drop the joint account down to $5 and open a new account at a different bank if your current one is listed as a creditor for an overdraft account or bank-sponsored credit card for either one of you.

Trustees look at recently closed accounts with some suspicion during bankruptcy, although since you've already filed, it probably doesn't matter. (Of course, assuming it's ok with your wife if you shut the joint account down....better make sure of that first - she may have written checks against it that haven't cleared yet.)

[tsmith05081982]

Well for 3 of the past 6 months i havent worked.. and we were way below the average income for CH 7... I will prolly leave the accts as is just to be on the safe side till the 311 meeting is over... With me not working do you think it is going to be an issue for us to reaffirm with no income...i wouldnt think so since it is also in another persons name that is not involved in the BK... I was actually his co-signer.i know the attorney already got the papers to get it done..

[lrprn]

With me not working do you think it is going to be an issue for us to reaffirm with no income...i wouldnt think so since it is also in another persons name that is not involved in the BK... I was actually his co-signer.i know the attorney already got the papers to get it done..

You may run into some problems getting a reaffirmation signed since you have no income. You mentioned a lawyer - have you retained one? Has your lawyer already agreed to approve your reaffirmation agreement? (The current bankruptcy law requires your lawyer to guarantee you understand the reaffirmation agreement and can afford it.)

If you are filing without a lawyer (pro se), then the judge will have to approve your reaffirmation. In that situation the court is not likely to approve a reaffirmation if you have no income.

Since you said you co-signed the loan for your friend, I'm curious why you want to reaffirm it? With no income, if you reaffirm this loan and then miss payments and default, you will ruin your fresh start after bankruptcy.

[tsmith05081982]

Yea ... I have a lawyer.. they have the reaffirmation agreements.. They called me last week...They offered to let me keep one CC but i didnt want it... Those things are evil... LOL I was thinking i had to reaffirm it to keep the car.... I didnt want him to loose the car...

[tsmith05081982]

Also... are they gonna ask about her job?? that she doesnt have anymore?? Should i call my lawyer and tell him about her quitting her job?? Or just leave it as it is??

[jbr12]

Your best option is to just call your lawyer and tell him everything. He is the one that knows your case well enough to answer all of these questions and give you the best advice possible for your situation.