Where do I start?

[Aces45]

I’m married, community property state. 60 K in CC debt in my name only. Trying to file a 13 in my name only.

I keep hitting a wall. My home burned down last year. My new home is in my H’s name only because he has excellent credit and I don’t. We are getting a large sum of money for the equity in our home.

I’ve spoken with 2 attorneys. One told me that equity money is definitely not protected. The other told me he needs to speak with one of the partners at the firm because he thinks it is. One told me my new home won’t be protected because my name isn’t on it, the other told me it is.

either way, both say I would be in a 100% repayment because of my H’s income.

should I just take my lump sum payment and try to negotiate with my creditors? I honestly think I’m close to being sued. I’m starting to get letters in the mail. One is specifically talking about negotiating.

How would I even go about negotiating? Would they give me something in writing before I pay showing that the debt would then be paid in full?

This is a complete mess. If I had put my name on the new house it would definitely be protected but our interest rate would probably have doubled.

[justbroke]

Welcome to BKForum.

You really need to speak with attorneys in Texas regarding the impact of any homestead exemption, but it looks like you have or will apply the homestead exemption to the "new" home. The $$$ from the equity from the fire is likely exposed in a bankruptcy because you didn't apply it to a new homestead, or had done so within the time period to obtain a replacement home.

Additionally, a Chapter 13 will likely yield a 100%. plan because you stated that (a) you have that $$$ from the insurance proceeds not applied to a new homestead, and (b) your husbands income is significant. There is no way to get around the spousal income issue unless that spouse has a lot of debt that eats up ALL, or at least a significant part, of their income.

I can't explain how to negotiate. Many creditors will check your assets to see if they want to negotiate. You have $$$ sitting in a bank that's likely unprotected. I don't see why they'd negotiate anything significant but a modest discount on the debt. You will pay taxes on all forgiven amounts at the ordinary tax rate.

I'd first get to a place where you have an attorney who is consistent and knows the law for Texas, especially around exemptions and what's protected. Or, go into a 100% plan if that makes sense.

[Aces45]

The first attorney is talking like I can’t even file a 100% repayment 13 because of this money.

I still haven’t heard back from the second attorney.

[justbroke]

That's a first for me... that you can't file a Chapter 13 bankruptcy if you can afford to pay back your creditors. The only bankruptcy which has that restriction is a Chapter 7 bankruptcy. The real question: if you could afford to pay all unsecured creditors 100% today, do you have another reason to file? Such as protecting another asset or assets, deal with impending lawsuit(s), or something else where you need to protect assets.

Will a Chapter 13 Trustee complain? Maybe.

Will your Chapter 13 plan payment be high? Very likely. You will need to pay to your creditors at least the value of the non-exempt property (and cash) over the life of the plan. A high payment is therefore likely. A high DMI, based on your non-debtor spouse may make the monthly payment really high.

I would shop around for some more attorneys in your area that specialize in Chapter 13s. Some attorney office love to stick to just Chapter 7 cases. Find one that is great a representing debtors in Chapter 13s.