Couple of general questions PLEASE!!!

[Justme69]

Here is my situation:

Divorced, 18 yr old daughter still living with me, I do not own a home (live with friend since I cannot afford an apt.), and I am about to be hit with 1/2 of my ex husbands credit card debt in a judgment (he did not work for the 3 years we were married and ran up apporx $150,000.00 in credit card debt).

I have no assets. I do pay a monthly note on a vehicle. I cashed in what little bit of investments I had this month just to avoid my ex getting his hands on it. I know that once I am hit with this judgment and he starts garnishing my wages I will have to file for Chap. 7.

Questions:

How far back to does the court look? (ie: bank statements, investment statements (all have been cashed in), credit card purchases?)

Right now my friend's washer went out so I am going to help pay for 1/2 of that since I use it 1/2 of the time.....need to purchase a few things for me and my daughter (ie: clothing for work, etc.). Im worried about these being considered luxury purchases when they are clearly necessary.

If someone could give me some general information of what to do and not do, it would help releive some of the stress I am under. I worked for 8 years to save my money to invest and now I will end up losing it all because of my lazy ass, greedy ex husband!! I am not even sure when I can/should file...next year??? Thanks so much!!!!!

[Minnymouth]

First you need to sit down with an attorney and see what options are open to your situation. Lay all your cards on the table, be honest about it all.

You can file a Chapter 7 it sounds like unless you have a great deal of income that would force you into a Chapter 13.

Regarding your assets, you said you have none expect your auto. You mentioned a savings? If it is a large sum, then Trustee could go after that to pay the creditors unless you have enough exemptions to cover it.

You didn't say if the credit cards were jointly owned by you and your spouse.
You did mention you had a judgment that a garnishment was fixing to start.
Filing bankruptcy would stop this garnishment and possibly everything be discharged in bankruptcy.

Only a good bankruptcy attorney familar with divorce cases can answers most of your questions. The sooner you see one the better, and calmer your life will be.

Keep us posted.

[Justme69]

well

My ex husbands credit cards were in his name only, but since we live in a community property state, all charges he made during our 3 year marriage, I get to be responsible for 1/2 of them.

Now I have my own credit cards in my name and since the divorce they have gotton out of hand. I had to basically start over from scratch buying everything to furnish a house/apt. for my daughter and I....and yet I now find that I cannot afford an apt. and had to move in with a friend.

I have about $8,000.00 invested which I have cashed in and waiting for my check. I certainly did not want my ex getting his hands on this and I really dont want to lose it in bankruptcy since this is all I have to my name and it took me years to save this!!!

I do have a 401k through my job and one that I started personally years ago, but i have not had the money to invest in it (personal IRA) for the past year or so, so the money in that personal IRA is just sitting there earning interest. Will I lose either of these?

Basically all of the money I make per month goes to auto payment, ins payment and credit card payments. By the time I pay my bills at the 1st of the month and then again at the 15th of the month, Im lucky if I am left with $500.00 per month to live on (eat, personal items, etc.). I took the online means test and for my state I do pass and qualify for Chapter 7, but I am scared to lose my investment money that I cashed in, my retirement. What about charges to my credit cards...since I am left with very little money per month after bills.....I do have to use my cards for different things and Im worried that this will come back to bite me in bankruptcy, but I dont have much choice at the moment!!!

[JRScott]

Your 401k would be safe, as would the IRA I believe. Retirement income is generally safe in a bankruptcy.

Cashing out the 8k in investment income though and spending it now or putting it into the bank might cause some eyebrows. Keep receipts for what you pay with it, just in case it comes up.

Normal clothing expenses would be reasonable. Just don't go buy designer clothes and shoes etc.

From the sounds of it he would also be responsible for 1/2 the balances of your cards accrued while married. It sounds like your a good candidate.

You need 6 months of paystubs
tax returns for 2005, 2006, and 2007.
6 months of statements from bank


Set up some appointments with local bk attorneys

[justplaintired]

I also think if you used some of that money towards an attorney that would be acceptable. Which since attorney fees are high, it would be smart to meet with a few, 1st consultation would be free, find one you like and get that taken care of, it doesn't sound like you will have the money to file otherwise. Make sure you file on everything you had with your ex, don't assume he will pay a bill and not file on it because of that, wipe everything out, no matter what he ex says.

If you are going threw with this, which sounds like it would be in your best interest, you won't pay cards anymore, so don't charge anything. This should loosen up some income to help you. If you are keeping the car, keep paying.