Unable to file Chapter 7 or 13 � Code 523.815

[2LiveSimple]

I live in Maryland anyone know whether its 25% of earnings or disposable income...I really have a no win situtation..my job will let me go when they find out I file BK or they will let me go when they find out I am in arrears. Anyway is it of disposable in maryland..would they make me sell all my furniture, not much might I add..our style is late Target the only real asset i have is my 97 dodge caravan..its paid for. thats our only car. thoughts?

[no_it_all]

Garnishment is the LESSER of either 25 percent of your net pay or what your state statutes mandate. The exception is Child Support which they can grab to the tune of 50 percent (again, of your net pay). Be advised that net pay is gross income minus federal and state taxes and any other MANDATORY deductions.

[no_it_all]

BTW, the code cited has to do with a spouse as a creditor. In other words, if you owe your wife a million bucks, you cannot go BK and have it wiped. Can't go BK with kids either, (think parent cleaning out child-star's bank account and then claiming BK).

If divorced people couldn't go BK, the BK rate would drop by about half!

[U2ForNow]

Ok well I just got a second opinion and it is the same outcome. Because I agreed to be responsible for my debt, in my divorce decree, I can not file for Chapter 7. This law forces people to file for Chapter 13. However, because of the amount I owe, I am not allowed to file chapter 13 either. The attorney recommended I look into Chapter 11.

The code cited is not just for money owed to a spouse. I owe my ex-wife nothing, have no child support, etc. This is strictly judgment debt and a few credit cards.

I am going to look into Chapter 11 but I hear it is very expensive. Things do not look too good.

[keepmine]

Are you in a community property state?

[U2ForNow]

I think so...

Are you in a community property state?

I live in Arizona now. I was in Florida and Florida is a community property state. Why do you ask?

[keepmine]

Fl is not a community property state but, Az is.
The reason I ask is, in a CP state if the debt was incured during the marriage, the ex spouse may be liable even if the debt was totally in your name.
I'm just confused as to why you can't file on debt that was just in your name. What is the reasoning they give? It has to be more than the divorce decree because as a previous poster mentioned, many people file regardless of what the divorce decree says and hang the ex with debt.

[U2ForNow]

[keepmine]

Realistically, you can't pay it even if you don't file bk and she'll be stuck with it.
Talk with her about filing bk as well.

[U2ForNow]

Stuck

Realistically, you can't pay it even if you don't file bk and she'll be stuck with it.
Talk with her about filing bk as well.

She won't be stuck with it and she would never agree to file anyway.

[keepmine]

OK, I'm way confused. You can't pay-are you saying the creditors have no recourse against her?

[U2ForNow]

Without getting into a ton of details two things prevent this as far as I can tell.

1. She never incurred any of this debt, and the divorce decree clearly states that I am to be held responsible and in the event I file for bankruptcy I will hold her harmless.
2. She has dual citizenship and would just leave the country. With the amount of money she has from the divorce she could live the rest of her life overseas and not have to work.

It just is not an option. The creditors have no recourse against her.

[no_it_all]

<snip> Because I agreed to be responsible for my debt, in my divorce decree, I can not file for Chapter 7. <snip>

Well, that may be true for you. But for the other six-hundred thousand filers last year that were divorced and responsible for their own debts it wasn't a problem. You are making it sound like the reason you cannot file Chapter 7 is <only> because you claim responsibilty for your own debts in the decree. That is simply not true. There are obviously many factors that you haven't shared. BTW of the millions of people that went BK in 2003 there were about 940 that went Chapter 11. Of those, maybe ten or twelve were individual debtors. The others were businesses. My <guess> is since that your debt was incurred over business deals, that is why Chapter 11 was suggested.

Sooo.. What really went on???

[U2ForNow]

I gave it to you straight.

Well, that may be true for you. But for the other six-hundred thousand filers last year that were divorced and responsible for their own debts it wasn't a problem. You are making it sound like the reason you cannot file Chapter 7 is <only> because you claim responsibilty for your own debts in the decree. That is simply not true. There are obviously many factors that you haven't shared. BTW of the millions of people that went BK in 2003 there were about 940 that went Chapter 11. Of those, maybe ten or twelve were individual debtors. The others were businesses. My <guess> is since that your debt was incurred over business deals, that is why Chapter 11 was suggested.

Sooo.. What really went on???

[anonymuse]

Sorry to repeat this, but have you tried posting over here:

http://community.lawyers.com/messageboards/list.asp