Advice please!!!!

[kelyho]

I recently disolved my business due to the stress level so as of now I am unemployed and cannot collect unemployment. I live in Texas and am married.

I owe about $40,000 in credit cards in my name only. Husband owes about the same in his name only. NO JOINT CARDS. We own a $140,000 house and 2 vehicles (one paid for and one we owe more than it is worth). Husband has the only source of income at about $70,000.

I have no cash or savings etc. We have separate checking accounts etc. (2nd marriages here...lol).

Am I eligible to file Chapter 7 and if so can I file and not him? I don't think in Texas they can touch our house, cars or personal belongings. I have NOTHING outside of these so I don't know what they could get. How would it affect him if I filed and not him.

Also, can you file in a different county than where you reside? None of my creditors are local. Our local paper prints BKs as a matter of public record every Monday. I really don't think it is anyone who subscribes to our local paper's business!!!!

Thanks in advance for any help you can provide!

[HHM]

Yes, you can file separetly from your husband. (Whether that is a good idea or not depends on whether TX is a community property state).

Bankruptcy is a Federal Action, so you have to file in the Federal District in which you reside.

Even in a Chapter 7, your Husbands income is a factor that may effect which chapter you ar eligible for and that has to be listed on your Schedules.

As for publication, you are out of luck, BK's are public record...

[kelyho]

Texas is a community property state. How does that affect things? My husband is about as maxed out as I am except he has income and can pay his bills even though is just paying the minimums on most.

If the District involves more than one county can I file in a surrounding county rather than my own?

[HHM]

Texas is a community property state. How does that affect things? My husband is about as maxed out as I am except he has income and can pay his bills even though is just paying the minimums on most.

If the District involves more than one county can I file in a surrounding county rather than my own?

You don't really file by county, you simply file in the Federal District Court in which you reside; you literally file at the Federal Court. Plus, you have to list your address, including county, on your schedule, so I am afraid you are out of luck.

Being in a community property state means that there is also community debt. If your creditors wanted to get tricky, they could try to go after your husband for the debt you discharged. (there are certain elements they would have to prove, and its not that common), but you should at least understand there is "some" risk the creditors will attempt to find recourse against your husband.

[kelyho]

I had all of these credit cards prior to the marriage. Does that make any difference? The debt was incurred during the marriage but the cards are in my name only and he is not listed on them.

[HHM]

I had all of these credit cards prior to the marriage. Does that make any difference? The debt was incurred during the marriage but the cards are in my name only and he is not listed on them.

Technically, if your husband benefited from the purchase, then yes, he could be liable. However, the burden of proof is on the Creditors, so its rare that this happens. I don't think you should let the mere risk keep you from taking action...you have to do something and seems like your options are fairly limited. You should probably speak to an attorney in your area.

[kelyho]

I am so overwhelmed!

I have heard something about establishing a trust and then transferring the debt to the trust. How does that work? And if I created ABC Trust and then the trust filed bankruptcy would it be listed as ABC Trust filing or Jane Doe rep. ABC Trust?

My family is pretty prominent in town and I REALLY don't want this in the paper. My town is not that large and "juicy news" travels fast!

[ks1488]

You may wish to visit the following free website...

(Link Removed By Todd) - Please No Advertising

This website provides complete bankruptcy information and services.

Best of luck to you!

[mark234]

Wow!

I can't believe that you and your husband racked up $80K in credit card debt!! Couldn't you live comfortably on your husbands $70K salary?

[robivi3]

It's easy to do. Especially if you are on higher salary because expectations are higher. In the early eighties when i made 8.49 per hour it was easy to stay out of debt. 70 k doesn't do much with a familiy in the big city.

[moneywoes]

I don't think anyone has room to ask why someone couldn't live on a particular salary. I can't believe someone would be rude enough to ask a question like that.

[robivi3]

The word Bankrupt comes from the Latin Banca Rota (Broken Bench). In Ancient times a trade guild member who defaulted on his debts had his bench and tools broken by the Guild (he gave them a bad name and likely they paid the debt to protect the Guild). He and his kin were then sold into slavery, not together, or he was taken before a magistrate and possibly put to death.

I can understand Marks question, seriously. I don't think he is out of line. We have to put everything in perspective. My Stepmother's Father, (I am 45, she would be75 now if she were alive) owned a Contstruction Company up to and through the Great Depression and on to the prosperous war years.

This man built most of the old buildings along Jefferson? ave. in Chicago. He built the first indoor public pool in America. He also was a major contractor at Oak Ridge and yes, as a child I met one of the men who first split the Atom, he stayed at our home.

She told me how he went Bankrupt three times from about 1930-41. All three times involved the onsite sale of all personal assets and the greatest public humiliation you could imagine. A generation before that you were arrested for your debt default and the key was to pay the debt. In early America you were indentured for seven years. In Ancient times you and your family were enslaved or your life was taken.

In perspective the question makes sense. I am making 75k in VERY secure job and went Bankrupt and to be honest the Trustee asked me that EXACT question, he will probably ask it at your meeting. It would be good to have good answer for him, it could make a difference in his disposition which is essential, he is partial to the creditors and wants your assets. I've learned to ask myself the same thing over and over.

In perspective BK's are a cakewalk today, a little rudeness doesn't hurt. Our lives are not taken, we are not enslaved, indentured or publicly humiliated (yes, mine made the local legal newspaper) so afew questions, i don't mind.

Best wishes for a succesful discharge, I know this is very trying and tiring, been there, done that. When we declared Chapter 7 our business defaulted on one very small local Company. Returning the leased equipment was humiliating. The owner was not kind, I suppose I can't blame him. He was from a third world Country and had a slightly different take on Bankruptcy though the law prevented him from going further than dirty looks. I hope that your case moves and closes quickly.

[drowningindebt]

I'm pretty sure this guy mark234 was just a one day troll trying to make himself feel bigger by putting others down. Look at his other two posts, they are of the same small-minded condescending nature. Looks like he's gone for now, thank goodness.

[robivi3]

The simple truth is 70k don't go far in the big city and I understand how you can get there and the STRESS of a business. I read alot of these posts that seem to be from small towns where people are talking about homes valued at 68k and salaries I hope i never have to see. In an Urban area 68k won't put a bucket on your head in a rainstorm. Here in Ft. Lauderdale they no longer build single family homes under 350k. NEARLY ALL homes built are zero lot line! No townhome is built for under 240k. Existing 30 year old 2 bedroom 1 or 1.5 bath homes in a good middle class mixed area like say Plantation or Sunrise start at around 250k. People in Miami (immigrants mostly) are existing on two meals and $8.00 per hour and if they are lucky an extra job.

Mark likely doesn't come from an urban center. However, his question is one that the trustee will ask. Remember the Trustee is an Attorney whose job is find any assets for the Creditors (hahahaha) and take a sweet fee for himself. I don't want to chastise Kelyho, I've been down this road and know how I got there but i would like to help her keep her perspective and also avoid the pitfalls of the Trustee. With a business he will be looking and listening. The best idea is to find an Attorney who is experienced and with whom you are very comfortable personalitywise. My Attorney gave some valuable personal insights as to the disposition of the Judge and Trustee. I regard that as of more value than if people find out. You will be surprised to find out that some people you thought were in great shape have also been down the BK highway.

I freely acknowledge my personal pitfall but lets be honest, these companies are fronting money when they clearly see that we are at the end of our rope, hoping to hang on. I'm sure Mark has his own problems, otherwise he wouldn't be looking into this forum.

My wishes are sincerely for a quick, favorable outcome. Kelyho, best wishes from a family that has been through it.

[mark234]

?!?

I've lived in Texas before, in Austin, and I made at that time (1999) about $70K. That is a good salary for TX. My rent was $850/month and I had no debt.

Now I live in Boston, I just bought a house for $550 and have a mortgage of close to $400K. I travel, have nice furniture, drive a nice car, and have a great fiancee. Otherwise no debt. Oh, and I'm making just over $100K now but save about 25% of my pay (401Ks are great by the way).

You guys shouldn't be declaring bankruptcy with salaries in the 70K region not even in the 60K region, especially you guys down south.

What do you buy to rack up $80K credit card debts? Why do you buy $30K to $40K cars and finance them almost 100% (or worse lease them)? Buy a civic or a used car and save your money. Live within your means, pay down your mortgages, don't buy fancy electronics, jewelry, expensive vacations or go drinking on the weekends. Spend your extra money on retirement savings and education for your kids. Focus on getting a better job. Live a responsible, prudent life and be mature with your money.