Joint Backruptcy (ch 13) or Divorce (ch 7)?

[emaretta]

Married, my husband and I make more than the median income for 2 people for our state (florida). So filing jointly will probably be a chapt 13 with a lot of dispoable income (once cc rates are reduced and bills are up-to-date).
If we were to get divorced, all of the unsecured debt is in my name, including 2 houses, and I make under the median income for 1 person. The only debt in my husband's name is his car loan he had before we got married.

Would it be better for us to get divorced and then I file by myself b/c on my income alone with all of our debts I can't afford hardly any of it and then I could do a ch 7? Our primary home we're upside down in, so would I still have to dump it in a ch 7?

thanks!

[BKTango]

You could also stay married and just you file a chapter 7 individually. If the majority of the family debt is in your name, there's no reason for your husband to file. I personally wouldn't divorce just to eek out a combined chapter 7 if there is no reason for him to have to file, unless there were other reasons for the divorce. Then that's a different story.

On that note, just because you are over the median does not mean you willend up in a chapter 13. According to your income yes, but it will come down to your expenses versus income. Once you think of everything expense your family has, down to the littlest of expenses, including those that you have been neglecting while paying on your unsecureds, you can compare that to your disposable. If it's a low amount or you are still negative you can possibly still get a chapter 7. But the majority of folks well over the median usually will have to file a 13.

Also the primary home, if you file a chapter 7 just because you are upside down does not mean you will lose the home. Sometimes it's best not to keep an upside down loan but still, that won't cause you to lose the home. It just means you have no equity. As long as you are current with the payments you more than likely could keep the home. This was my exact situation. The other home that is not your primary, you would probably have to give that one up. As far as your primary home, it would be up to the question of "Is it worth it to keep this home that's upside down?" Of course depending on how much you are upside down ways a lot on that question.

[emaretta]

Well, if we stay together in the same house, wouldn't his income have to be included in the household income? We met with an atty today but unfortunately the secretary didn't tell me to bring my past 6 months pays stubs, so we couldn't do the means test. He advised I file by myself since all the debt is in my name and if we stay together and need to take out a loan at least one of us will have a "clean" record so-to-speak.
So is there a way if I file separately to not include his income although we share the same house?

[SinkingFast]

Definitely gather your 6 month's pay stubs, your last 2-3 years' Income Taxes, regular monthly bills, CC statements, and such.

Take all that with you as you Consult with BK attnys. Chat with at least 3, maybe 4. Get a consensus opinion and get to meet several. Find one you're comfortable working with.

See what the attnys advise. Then work from there.

You can possibly file Ch 7 separate with no need to Divorce. Then you'd still have Hubby's good credit to rely upon.