Just recently got married...help!

[Brookamy]

Hey there. I'm seriously looking into filing bankruptcy. I have over 30,000 of unsecured debt. I own my own house and car and work full time. I just got married. We have not combined checking accounts, etc yet. He has no part of my unsecured debt. Can I just file for bankruptcy alone? Will it hurt his credit score? What about purchasing a home in the future....can we just do it based on his credit or will I hurt the process if I do declare bankruptcy? Will I have to count his income when taking the test to see if I can get chapter 7 or 13?

[JRScott]

We need really more information:

First what state are you from?

What is your net income?

You say you own a home, what is your equity in the home?

What is the equity in your vehicle?

Whether you would want to file singly or not would be determined if your state is a community property state. If its a community property state you might both have to file to expunge the debt.

It would affect your ability to get an FHA loan for 2 years. However it might be possible to get one in just his name before that.

You would count his income in the means test. But then what he doesn't devote to the household gets backed back out from my understanding.

[Brookamy]

I'm from Minnesota.

My net income per month is $2600 a month.

I would guess I might have $10,000 equity in my house. My mortage is $1220.

I have car but owe more than it is worth I'm sure. My payment for the car is $400.

I pay $1100 in credit card/unsecured debt a month...sometimes using credit cards to pay each other....

$200 in daycare (which will be done in Septmeber)
$120 in student loans
$70 for car insurance
$200 in gas
I also pay basic utilities, etc....

I just looked up Minnesota in regards to being a community property state and this is what I found....."No, in matters of marital property it is an equitable distribution state"

I also have a daughter who I share custody of with my ex-husband.

My husband brings home about $2000 a month. He has a truck loan of $425 a month. He also has some credit card debt and a couple of loans. He has a side job that pays cash and he makes between 5-8 hundred a month doing that.

Any idea if I would qualify for chapter 7 or 13?

[Brookamy]

It looks like the median income for a family of three (i can count my daughter right? I have her during the week and my ex has her on the weekends) is $68,737. I'm thinking that we would be under that....the median is based on net income right?


Edited to add: When I talked to a paralegal today, I found out the median income is actually a little over $70,000.

[Phillymanhere]

No, the median state figures (the means test) is based on gross income.

[Brookamy]

If it is gross....then me and DH would be over.....

Can I just count me and my daughter?

[Brookamy]

Two persons....counting me and my daugther (right?) would be $58,705. Since my DH doesn't have to file with me since we are a community property state right?

[Phillymanhere]

You are getting a little ahead of yourself. I know you're stressed, but you can slow down a little here.

The median income is just ONE way to qualify for chapter 7. There are plenty of people on this board who have incomes above the median and filed successfully for a chapter 7.

You can go through old threads looking for "means test" or "above the median" and find plenty of threads. FYI: these people qualify on the second part of the means test: do you have less than $100 to $160 left over at the end of the month after you pay your "reasonable" expenses. You can do a search for Schedule J and find threads on reasonable expenses.

There is also chapter 13, which you may want to read about. That requires 3 to 5 years of payments, but they are intended to be "reasonable" payments. They are usually much lower than what you could negotiate on your own.

Others may also weigh in. But slow down and read up on past posts.

[Flamingo]

Do you receive child support for your child from your ex-husband? Who claims the child on their taxes? If your ex-husband does and you share joint custody, get some legal advice. Your present husband's income is considered household income under a Chapter 13. I suggest getting an appointment for a consultation with a BK attorney to get a better handle on your situation.

[Brookamy]

Thanks for the advice! I'm just soooooo stressed out.

Yes, I am usually negative after I pay my bills for the month. Ugh.

We don't pay child support since our time with her is pretty equal (he does take her sometimes during the week). We take turns claiming her on our taxes. He gets the odd years, and I get the even years.

I'm definitley going to meet with a BK lawyer!

[Flamingo]

Thanks for the advice! I'm just soooooo stressed out.

Yes, I am usually negative after I pay my bills for the month. Ugh.

We don't pay child support since our time with her is pretty equal (he does take her sometimes during the week). We take turns claiming her on our taxes. He gets the odd years, and I get the even years.

I'm definitley going to meet with a BK lawyer!

Since you take turns claiming her on your taxes, you may have an issue in having her as a dependent to file bankruptcy. Do you have a child support agreement stating that? Hopefully you do. Most people think something like that doesn't matter until something like this occurs.

There is absolutely no reason to be stressed out. Just do the following which will give you all the information you need to make an informed decision as to what you will need to do. Look in your phone book for right now and call and make an appointment with a BK attorney in your state. Take with you a complete listing of all bills, monthly payments, recent pay stubs, a listing of any other source of income (i.e., your present husband), a listing of all your assets (checking/savings accounts, 401(k) account, stocks, bonds, house, etc., etc.) and copies of your most recent federal and state tax returns. If you have an agreement as to your daughter with your ex-husband as to her support and dependency claim status, take a copy of that with you also. From that the attorney will tell you what you can and cannot do and what Chapter you will be able to file under the requirements and exemptions of your state.

[Brookamy]

Thanks!!!

Yeah, it is in our divorce decree that we will take turns claiming her every other year for our taxes.

[Phillymanhere]

Just a quick addendum: when I mentioned the need to not have much money left over at the end of the month, that is without your currrent credit card payments, without any debts you want to discharge through bankruptcy.

Now, you may panic and think, "Oh no, I'll have more than $100-$160 left over if I don't have credit card payments." .... But here's the thing: many people filing for bk omit other expenses that they have: car repairs, clothes/shoes, medical bills, eyeglasses/contacts/parking ... mainly we tend not to think about those things we SHOULD be regularly spending money on, but don't because we're always stretching and straining and making big payments at the last minute ... One example: I had over $2,000 in car repair costs last year. That works out to about $200 a month in expenses.

So do the research and schedule 4 or 5 visits (free) to lawyers for consultations.

[Brookamy]

I called and have two free initial appts set up....one on the 10th and on on the 16th. I'm nervous but feel good that I'm making some progress.

I broke down somepayments....this is not including my husbands income....

I make $2600.00 a month.

Basic Bills:
1220.00 mortgage
400.00 car
16.00 life insurance
220.00 daycare
120.00 school loan
50.00 college fund for daughter
50.00 sewer, water, garbage
70.00 car insurance
90.00 electricity
100.00 cable/internet
90.00 natural gas
200.00 gas
250.00 groceries
EQUALS: $2934.00

Credit Bards/Unsecured Loan (per month, minimum payments):
$479.00 Bank of America
$200.00 US Bank
$200.00 Discover
$25.00 Chase
$30.00 Sears
$10.00 Maurices
$50.00 Old Navy
$50.00 Home Depot
EQUALS: $1314.00

So I owe $4248.00 per month and make $2600.00.

I do get expense checks for milage claims from work which help ($500 a month or so). My husband brings home around $2000.00 a month. He also has a side job that pays him cash...he makes between 5-8 hundred a month doing that) He has a truck payment of $425.00. His own truck insurance, a couple of loans, our cell phone bill, his own credit card debt (maybe $2,000) and pays atleast $400.00 a month in gas.

I just want to

[southernbelle]

Try this site. This is an online Means test that will at least give you some direction. It kinda helped me to determine what kind of disposable income I would have left at the end of the month.

http://www.legalconsumer.com/

I have a quick question. Earlier JRScott mentioned the fact that the community property status would not determine if they filed jointly or not, but is not correct to assume that unless the debt was incurred jointly, her new husband has no legal obligation to pay it community property or not?

I was curious because I remember reading where husband and wife were married but one of them had business debts and only one was required to file (both incomes and expenses were used for the Means test), but overall isn't it the person with the obligation to repay the debt the person that is required to file?

That might save his credit so that they could recover from her filing. Just curious.

Also you might want to check this site out. There is a lot of great general info.

http://www.moranlaw.net/

Please speak with several atty's in your area asap so that you can get some guidance and some peace of mind. Just my opinions, good luck.