Need Chapter 7/Divorce Advice!

[2Bshinyandnew]

I was told since we both have a separate residence, we would have to file separately. When reviewing the means test I have three income options:

married - filing jointly
married - not filing jointly - same household
married - not filing jointly - separate household

This appears to be true if I were not filing jointly. The paralegal asked several questions and I provided her the information on both myself and my wife. However, I wouldn't think our filing status would be any different than our federal tax filing status - Married filing jointly (or Married filing separately).

Both of us filing jointly would certainly change the means test as our combined average income would be below the NC minimum. There's certainly no fair way to evaluate my financial situation without looking at her's. I am paying rent, mortgage, EFT's for credit cards. Her income is essentially paying for gas, groceries, and utilities. We still share a joint checking account. I have worked pretty hard in to talking her in considering filing. I was disappointed to hear that we couldn't file jointly. This eliminates options for us.

If it works out best to file 1 petition for both of you, if file married-filing jointly-same household is the filing option works out best for you, that is what you use. Just because Married-filing jointly-separated is nto a choice, I'm not sure that automatically means you can't file a joint petition at all. Let us know what happens.

[superruss]

I was told since we both have a separate residence, we would have to file separately. When reviewing the means test I have three income options:

married - filing jointly
married - not filing jointly - same household
married - not filing jointly - separate household

This appears to be true if I were not filing jointly. The paralegal asked several questions and I provided her the information on both myself and my wife. However, I wouldn't think our filing status would be any different than our federal tax filing status - Married filing jointly (or Married filing separately).

Both of us filing jointly would certainly change the means test as our combined average income would be below the NC minimum. There's certainly no fair way to evaluate my financial situation without looking at her's. I am paying rent, mortgage, EFT's for credit cards. Her income is essentially paying for gas, groceries, and utilities. We still share a joint checking account. I have worked pretty hard in to talking her in considering filing. I was disappointed to hear that we couldn't file jointly. This eliminates options for us.

[keepmine]

Stop paying the mortgage now if you intend to surrender the home. Foreclosure takes months. She won't be homeless anytime soon.
As someone pointed out earlier-you need to start worrying about yourself and not an ex. In this economic climate, it's gotta be every man for himself. Cut her loose.

[2Bshinyandnew]

since we live in separate households, I (we) will have to file separately.

Not to further muddy the waters, but you do not have to file separately. The BK attorney should look at your situation and advise which scenario will benefit your situation.

My husband and I have been separated for 2/1/2 years. We saw 3 attorney's together for consults. One said he wouldn't represent us both since we were separated and advice he gave may benefit one of us more than the other, or be detrimental to one and not the other. The other 2 were fine representing us both, if that was how we wanted to go about it. Go figure. Every situation is unique, and ours was downright strange.

For us, in our circumstances filing separately allowed us both the keep as much property as possible. On the surface that sounds weird because as couple you can usually double your exemptions and only pay one attorney/filing fee. We had some unusual deed titling issues. Your situation may be different though, so I would get a few opinions. I tell you, when my husband told me he was filing and including the joint debt, I about had a hissy I came around, eventually, though.

[superruss]

Thanks for the replies. I have an appointment next week with a BK attorney. My wife will attend, although, since we live in separate households, I (we) will have to file separately.

I did the means test tonight using legalconsumer.com. I'm sure I have missed some expense deductions but nothing major. Currently, I don't pass the means test due to past income. However, if I continue drawing unemployment benefits or make no more than I'm drawing, I should be able to file at the end of May simply due to being below NC's $3088 Median Income.

The credit union also called me today and offered to lower my primary mortgage ARM to 4.25% for 2 years (currently 6.25%), rebalance my loan, and defer 2 months of payments bringing me current. I estimate that this will reduce my mortgage payment by about $100. This sounds great, however, it is only temporary and it doesn't change the negative equity I have on an aging home that needs repairs. I still feel that surrendering the house is the best option.

This first meeting should be interesting. If nothing else, I can plan out the next 4 months and how to handle the bills. At this point, I am not planning on keeping the house and will remain in my townhouse. I suppose we can continue to pay the mortgage through April to avoid foreclosure. This will allow my wife to stay there while giving her more time to find a place to live. I have stopped paying my other non-secured bills.

[Help!]

Please clarify. Half of what? I have acquired most of the debt during this marriage and there are no assests. She won't file although she probably should.

I guess my biggest concern right now is my eligibility to file due to my past income. This will determine when I can file and what to do in the meantime with my creditors, auto and home.

If you don't have kids, your previous 6 month income puts you above median, right? You want to avoid filing Ch. 7 above median if you can avoid it. If you live in a community property state, it doesn't matter who acquired the debt - you can both be held responsible.

[TEW]

Please clarify. Half of what? I have acquired most of the debt during this marriage and there are no assests. She won't file although she probably should.

I guess my biggest concern right now is my eligibility to file due to my past income. This will determine when I can file and what to do in the meantime with my creditors, auto and home.

do you have any joint debt ?
when you can file may depend on your last 6 month income.

[superruss]

Please clarify. Half of what? I have acquired most of the debt during this marriage and there are no assests. She won't file although she probably should.

I guess my biggest concern right now is my eligibility to file due to my past income. This will determine when I can file and what to do in the meantime with my creditors, auto and home.

[TEW]

JMHO file before the divorce and see of you can get your wife to file jointly If she does not she may be able to have you pay her half as part of the divorce. Then you would be responsible for debt you had discharged.

[superruss]

Should I complete the Statement of Current Monthly Income and Means Test Calculation to see when I should file? Will it make any difference to my credit bureau if I allow my home to forclose and my car go back prior to filing?

[FijiTime]

If she's going to stay an EX then maybe you should focus on your own issues and not worry about what making your situation better does to her. Sorry, I don't want to sound like a jerk about it. It's human nature to still care for someone that you've been married to, but you've got to worry about yourself first!

You might look into getting yourself removed from the shared accounts. When I split most of my lenders were more than happy to break our accounts apart. They may want to qualify her alone for the accounts when you're removed but that shouldn't be your issue.

[superruss]

I've been thinking about the median requirements. I was making $4500/month up to this week. My income has declined from the $70K's over the last year. Now, a career change and further drop in income inevitable.

My wife on the other hand, has only been making slightly more than minimum wage. In either case, it's not good. I have been paying for two households during this separation. All the while my income decreased up to the point of my layoff.

If I filed prior to our divorce, wouldn't I have to include her income in determining our financial status? There's no way it can be viewed favorably. We could barely pay our bills when we lived together with more income.

[Help!]

I'm sorry you're going through all of this at once. The only thing I have to say is that I think you're doing the right thing filing BK, but since your income is on its way down I would wait to file. I get the sense your past income would have been over the median, so maybe it makes sense to tackle the divorce first and file BK afterward. If it were me, I'd let go of the house and ALL other debt. That way when you emerge from BK you'll only have to worry about cash flow to take care of yourself, not to meet debt obligations. It's very good that you're here and planning ahead. Hang in there!

[JRScott]

I sent you a message for the lawyer

[JRScott]

She'll take a hit on the joint accounts probably, however after your bk they won't be joint accounts she'll be the only account holder.