Need advice on Chapter 7

[Hause]

Does anyone know from their experience, if the 90 day rule applies to payment of monthly rent,and car note, utilities. Does this 90 day rule mean to stop paying the electric, car, and landlord even though they are not included in the chapter 7 debt of creditors?

Also, what about car notes, and leases as me being the secondary cosigner on a contract, will the bankruptcy affect the other party. Note: These contracts are with live in girlfriend.

Lastly, can a spouse legally be a girlfriend, or partner?

Thanks in advance.

jess

[momofthree]

The 90-day rule does not apply to necessary living expenses or monthly payments on secured loans. Rent, utilities, food, car payment, insurance, etc are all allowable expenses and will not be affected by the 90-day rule.

A spouse is only legally a spouse if you are married and the documents were recorded at the courthouse. A girlfriend or partner would be treated as a roommate in the bk process if you're living together. If you're both filing, you'd need to file separate cases, or get legally married prior to filing.

[Hause]

Finally. Thanks for the clarity. Also, I am filing alone. I didn't want to get her caught up in the legal process, if that could be avoided. Momo.., do you know how the banks handle joint auto loans with the secondary cosigner going into a Bk7? Does the contract default, or does it just remain, and 100% responsibility go to the primary signer? What's your take on this?

[AngelinaCat]

Hi Hause, welcome to the forum. To answer your question about the co-signed loan: If one party to the co-signed loan files BK, and the other party doesn't file, the loan becomes 100% the responsibility of that non-filing party.

[Hause]

Thanks for the quick responses, and info. You guys are great. So, I will be filing in May.

[despritfreya]

Hause,

Nothing for me to add to the great responses already given except. . .

To the extent your significant other contributes to your living expenses, that contribution must be included in your 6 month Current Monthly Income analysis.

Des.

[AngelinaCat]

Sort of...

Des, I now have a question regarding the two co-signers for a car loan:

If BOTH parties file BK, do both parties end up discharging the debt, and the lien holder ends up 'eating' it?

Albacore44 is having a similar situation trying to help his 85 year old MIL, who cosigned for a motorcycle for a nephew who is getting ready to file....

http://www.bkforum.com/showthread.php?75890-Collection-question

Thanks for your patience!

[despritfreya]

Des, I now have a question regarding the two co-signers for a car loan: If BOTH parties file BK, do both parties end up discharging the debt, and the lien holder ends up 'eating' it?Albacore44 is having a similar situation trying to help his 85 year old MIL, who cosigned for a motorcycle for a nephew who is getting ready to file....

Cat,

I really do not have anything to add to the other thread as the concepts and concerns were well addressed. If both borrowers file bk the debt is discharged and the creditor is out of luck but for repoing its collateral if payments are not made. As it pertains to the other thread, MIL better make sure the annuities are exempt before she takes the plunge. . . and if they are exempt maybe she is judgment proof and does not need to file.

Des.

[df04527]

I was the primary on an auto loan, dd was co signer (my credit was better for a better rate but her vehicle) financed at a credit union. She filed bk, did not affect me whatsoever.