In a mess in Georgia.

[inthecrapper]

Hello all. I've read a ton of good information on this forum and done some searching. but I haven't run across my issue.

Business Facts
I live in GA which is a non community property state.
I am a Real Estate developer/builder and have over 50 million $ in business loans that I have on personal gaurantees on (all the loans have others as guarantors as well).
I had a high income until 2007. I have lost money since 2007 (big money).
As of now the banks are letting my partners and I forebear interest, but they are starting to tighten the noose.
Other than the banks, all other business creditors are paid in full.

Personal Facts
My wife and I have been seperated since 06-2008.
We still live under the same roof.
We have no unpaid bills.
The only debt we have is the mortgage which is paid to date. There is significant equity in the house.
The wife wants to get a divorce. She will alllow me to live in the house with her and the kids until I get on my feet.
She opposed me investing all our money in the real estate deals 5 years ago. I assured her she would get her half of the money back.
I have lost the money.
She said she will take the house (I put it in her name 2 years ago but I make the payments) and a piece of raw land with no debt (I put it in her name 2 years ago) and a large tax refund we have coming (joint return).

I am going to be forced to BK by my bankers sooner or later. I have no personal assets (my car is in the business). My wife will get everything in the divorce. She does not work and she has stated she will not seek support.

Should I BK before or after my divorce? Will the TT come after my wife for the assets she has. Keep in mind I lost her half of our money and with the house, land and tax refund she will get about 20% of it back. She is not going to ask for spousal support and the kids are stepkids to me (just an fyi on the kids, their dad pays child support).

The only debt I have to disharge is businees debt (large secured bank loans).

Thanks for the help.

[keepmine]

This is not a routine run of the mill bk and you better get some good legal help fast.
First off, is the property transfers and you're still making payments on something you don't own. If the transfers left you insolvent, you may have creditors using your states fraudulent transfer act that may have a lookback period of more than 2 years.
Secondly is timing the divorce.

http://doney.net/bkcode/11usc0541.htm

[lrprn]

Given the circumstances you describe here, it's likely best to divorce first, then file bankruptcy to remove the legal marital ties well before filing, even with GA not being a community property state. Divorce and bankruptcy laws make uneasy bedfellows. In some states, the statutes can even be in direct conflict with each other.

Of course, with the complexity of your financial situation, you absolutely need to discuss everything with several very experienced GA bk attorneys in your area who have filed a considerable number of complex personal business cases similar to yours before making a decision about the divorce timing. Set up those appointments now.

Also if I were you, I would also meet with several experienced divorce attorneys now to get their opinions about the best timing for the divorce as well.

It sounds like your life has really fallen apart in the last few years. I'm sorry that's happened to you, but you are doing the right thing to find out what the best options are for you and for your wife and children.

[bulletproof77]

I am currently going through a divorce, a Chapter 7 BK and foreclosure of my home...(yes, I know, the 3 Horseman of the Apocalypse)...Legally, it makes NO difference to the BK Court as long as you file jointly. If filing as a single person, of course it only affects you, however any distribution of assets has to approved by the BK court. In other words divorce first, then BK. At least that's what happened in my case and it worked out OK. Someday I just might learn to actually like living in an apartment.......

[JoeBankrupt33]

In your case, I would definitely divorce before bk.

In my case, both my wife and I have a pile of debt, and because of the separation, we have no way to cover it. So, we decided to file bk jointly, wipe out all debt (except for my student loans), then get divorced. We don't have any assets to save, so this was the right decision for us.

[inthecrapper]

I appreciate the information. My wife is worried that when/if I BK the trustee will come after the assets she gets in the divorce.