looking for some quick advice....

[4inga]

Filing bankruptcy never entered my head until about 2 weeks ago when I realized my cc debt had almost doubled in the past 5 months. My husband started a new job just as we were majorly upgrading into a new house and while using them here and there to get by until he started producing (commission only) groceries, utilities, school, etc. I am so nautious when I saw that final number. I have no idea.

Anyway, with this looming bankruptcy change I suddenly freaked. I saw an attorney today and am more confused. I do not work- and most of the debt (36k)is in my name so I only was going to file. The only thing we share joint is my car. The attorney advised me not to file, and go through cccs. He said that by filing a ch. 7 would hurt my husband. It wouldn't change his score but it would be noted on his report that "co-debtor" had filed and they just see bankruptcy and freaked. Of course I don't want to do anything to hurt his credit as it's perfect and would be the only way could remain half normal going through something like this. Anyone have any suggestions? I have no assets either. Just a joint bank account.

thanks-

[StaciMM]

Is your husband's name on the credit accounts? If not, I don't understand how a BK could impact his credit. If you & him were to apply for something together, it would impact that appliction decision. (Other than the car loan may be notated 'included in bankruptcy' on his report.)

I am impressed though-I've heard a lot of cases where the attorney advised people to 'try for a 7' when their income & expenses didn't call for it.

[4inga]

My husband's name is not on any of my credit cards. The house is in his name only (would a quitclaim deed with me at closing change anything?), and my car is in both of our names. Has anyone filed seperately in a non-community state? Can you tell me if that has affected you? Also- what will happen to any cc's I have that have no balance but are still open?

I also wander how a ch. 7 can or will affect any utilities in my name or car/life/health/homeowner insurance rates?


Thanks-

[HHM]

When you are married, you really can't file bankruptcy without affecting your spouse. I don't care what state you live in, a married couple is viewed as a single entity under the law, unless you take fairly drastic steps to keep your debts and liabilities seperate (i.e. filing papers with your county recorder) everything you own and your debts you acquired during marriage are both of yours.

Depending on your husbands income, CCC's may not be a bad way to go. Also, depending on the state you live in, even if the credit cards are in your name, if the debt was incurred while you were married, your husband is equally liable for that debt, so you filing on your own won't really help matters.

Do you work?

Incidentlly, why would you make such a huge financial committment to a new, more expensive house if your husband is moving jobs?

[4inga]

We are in GA so my debt is not his debt. And um, really bad choices. At the time the debt seemed manageable. We had already sold our house and contracted on a new one and then he got an awesome opportunity that he had been waiting for. Just bad timing.

[HHM]

We are in GA so my debt is not his debt. And um, really bad choices. At the time the debt seemed manageable. We had already sold our house and contracted on a new one and then he got an awesome opportunity that he had been waiting for. Just bad timing.

Umm, even if GA is not a communty property state, any debt incurred while married to which your spouse received a benefit makes him liable on the debt. However, as a practical matter, credit card companies do not often pursue co-debtor spouses as establishing the liability is often more costly.

I figured as much about the house and job...hopefully it works out. I think once your spouse starts producing, you will be able to pull yourself out of this debt without having to file BK.

[Charmony]

[HHM]

Honestly, its the first I have heard or seen of a credit report entry of "co-debtor filed Bankruptcy". One spouses bankruptcy should not effect the credit of the non-filing spouse, but it may or may not effect the spouses liability on a joint debt.

[4inga]

I have a few other questions:

1-If my husband and I share joint bank accounts at the same bank one of the cc's I am discharging is at, should we move those now prior to filing? Or can I just remove myself? The attorney told me they would most definitely seize those accounts and good luck suing....

2-Regarding our bank accounts, my husband is commission only so we do have money in our accounts because we have to project 3-4months down the road for living expenses. How much am I allowed to have cash? The attorney told me individually $5000 each, is that accurate?

3-When doing the paperwork it ask to list all your household goods. To what extent do you do that? And how do you do that when you have a spouse and are not filing jointly?

4- I keep reading in the archives about this $600 payment to creditors over the past 3 months, but it's not on my sheet?

5-Going back to the question about hurting my spouses credit regarding the joint loan on my car- if we reaffirm the loan, would that "co-debtor included in bankruptcy" go away on his credit report? Would it be listed as included on mine?

6-We have one other cc that is shared jointly that has a $0 balance that we never closed- what would happen to that one through the bankruptcy?

7- I have charged in the past 90 days on my cc's. About 2/3 of that was food, gas, utilities, etc. Will that create a problem? The total amount charged was about $7000.

8- We also get a large tax return back every year- varies from yr to yr based on his commission, mileage, etc but how will that hurt or help us or nothing at all?


Thanks if you made it this far.