Question [NYC] Help planning a BK7 ?

[boklos]

I’m asking for help planning the bk

I have student loans (deferred, and cc debts ~40k) when in college in 2015.
Couldn’t get a job with my degree, worked in sales for 3.5 years, then in 2018, got sick with multiple surgeries till now.
Wife has good credit, working in custody bank, relied on her income while using paying her own ccs, for those 3 years at home.
Due to a mold problem at home, had to use CCs to purchase almost everything new, and moved to Brooklyn, with higher rent.
Now cannot afford making minimum payments for ccs.

Contemplating filing JOINT bk7:

Her ccs are not all maxed(70%), total credit ~35k/50k
When do we file? when do we stop using/ paying ccs?
How many months of bank statements do we need to provide?
Would closing a bank account be red flag? (how long does it need to stay closed not to be so?)
Could her job (finance custody bank) be affected with bk filing?
She has a car (paid) on her name we put for sale for $5,000 when we moved to NYC, would selling it for cash be an issue? Does waiting 6 months before filing clear it?

thanks

[bcohen]

My advice is to not declare bankruptcy at this time--either individually for yourself, or jointly as a couple. It sounds like your problem is due to protracted unemployment, and bankruptcy will not solve that. You are not in a community property state, so your wife is not liable for your debts. As long as you remain unemployed, you are essentially collections-proof. You didn't mention any pending lawsuits or other collection actions which would be stopped by declaring bankruptcy.

Also, your student loan debt presumably makes up the bulk of your "approximately $40k" in debts, and at this time, student loan debt is extremely difficult to discharge. However, there is tremendous appetite in Congress to change the law, and make it easier for debtors such as yourself to discharge this type of debt in bankruptcy. Therefore, waiting to file could be very advantageous--especially if you are able to discharge debts in the future, which would not be discharged under current law.

The best course of action would be for you to quit paying anything toward any debts which are solely in your name, and instead focus your household income toward keeping your wife's debts in good standing. She can continue to use her credit cards for routine household purchases, and should continue to make the monthly payments.

If and when you become gainfully employed again, then you can decide if bankruptcy makes sense, or if you should hold off for some reason. Also, in response to your other questions, the fact that you closed a bank account and sold an un-needed car will not be a problem if you ultimately declare bankruptcy. As long as the money has already been spent on living expenses, the trustee isn't going to probe further.

[dontlook]

I began my paper work. Yay