New with a question about an Asset I Own

[HHM]

Crazy thought, but wouldn't the OP be able to sell the cabin voluntarily before filing, then use 100% of the funds to proportionatley pay the debts they have without raising any questions. In a small town environment like this, she may be able to find someone willing to buy it, and sell it back at say 35-40k two years after discharge. That way during the bk there would be documentation to show that the selling of the cabin was for the purpose of paying creditors, and would be unlikely to be undone.

Anyone know if that might work for the OP?

Yeah, but it all ends up being a wash anyway. Since the OP is already above the median, odds are, she will have to file chapter 13 anyway. So selling the property, doing a 60 month payment plan, and then rebuying the property, would probably be more costly.

You CAN sell assets before a BK and you CAN sell assets to insiders, but you have to receive market value for asset. But doing so makes your BK case complicated and expensive because trustees invariably look into these transactions. Also, when you do sell assets, it begs the question as to what the person did with the cash they received. In the big picture, it is usually better to hang on to the assets and do a chapter 13.

[danaf]

for the OP - Is this cabin very far from where your husband works?

the thing about a 13 is if you make more $ in the future, then your ch 13 payments will go up. you'll be stuck paying for 5 yrs.

If you sold your house and was able to live in this cabin, then you could claim it as your home.

And if your husband were to work less ot, would he be able to fall under the median.

Far stretch but.....just ideas if this cabin is so high priority to you.

I'd also look into downsizing cars to keep things more affordable.

[inhocknow]

Its my understanding that if your husband has all of the debt in his name, and you are only a cosigner, that only he needs to file for Bankruptcy. His part of the asset is 1/2 or $15,000.
He will need to buy that portion back if the trustee allows it. I hope this helps.