Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.
Your ex-husband's Bankruptcy will not affect your credit, and will not appear on your credit report - it can only affect his credit.
Whether or not his Bankruptcy will affect your living arrangement will depend on how much, if any, equity the property you live in has.
How much equity does your home have? (Equity = current market value minus the balance on the mortgage.)
Do you see my question about the home's equity?
The house I currently live in has a mortgage balance of $25,000.00; it was purchased 8 years ago for $65,000.00 and estimated worth around $70,000.00 or so; currently on the market for $85,000.00. The other house under rent to own contract has about $4K to $6K return; it was purchased by my ex and I for $154,000.00; balance due is now in the mid $130K range. Tenant has been living there for over 1-1/2 years; she pays the rent to own organization and they pay the mortgage under our name. I had signed the contract with them solely, as my ex wanted nothing to do with it then...the agreement states they would pay off the bal due on the mortgage which it was at that time...and am understanding that the residual amount would be paid to us. Ex now wants to get $$ before filing bankruptcy...he is in a big rush....the irony in all of this is he couldn't even get a $200.00 loan when I met him...and my inheritance received from my father's estate paid the down payment of the rent to own and a year's worth of mortgage!!
Thank you for your response.
Since the house you are living in has so much equity, it will be taken and sold by the Bankruptcy trustee.
If your ex-husband files a Bankruptcy.
OMG...is there anything I can do? My divorce agreement shows that he waives all rights to the property and only wants a $10,000.00 stake in the property...
Your ex-husband's will be able to apply a $5,000 exemption to his $10,000 share of the house. You will be given the opportunity to pay the $5,000 to prevent the trustee from selling the house.
Does that mean he gets to put $5K into his pocket or would it be payable to the trustee? I certainly have lost ALOT of monies by this man's hand. And now, based on his filing, need to pay an attorney to protect myself; should have paid for one at time of divorce, but I trusted he was honest and upfront in his dealings...we have been apart for two years know and tired of dealing with him...guess it is my (and Uncle Same's) responsibility to pay for his new lifestyle...deemed 100% disabled by VA, collecting SS....new bride he met online from another country and child #6 due any day...(our son is #5; turning 12 in a few weeks)...waited 40 years to have a child with a "man" like that...what was I thinking!!! Happy Valentine's Day....LOL
Yes - if he files a Bankruptcy, he will be allowed to keep $5,000 out of his $10,000 share of the property. The remaining $5,000 will go to the Bankruptcy trustee.
Boy, how to bag on debt and still profit....gotta love it!!! He charged tractors, motorcycles, vacations and designer clothes...sold all of it and had a friend hold onto the money in their accounts...in a few years he can set his new wife up in business and purchase a home with a VA loan....and be completely debt free! Poor taxpayers (and ex wife) never knew what hit 'em. He makes more "income" now per month than he ever did working!!! Thanks for the advise :)
If he makes more than a certain amount per month, he may not be able to file a Chapter 7 Bankruptcy. There is a limit to the amount of income a Bankruptcy filer can have.
Good to know! I know he is getting close to $1500.00 or more per month in VA disability benefits, plus another $1k for SS. I am chasing his paper trail because he may also be collecting unemployment and Supplemental Nutrition Assistance (ebt) and the new baby will "entitle" him to $300.00 more from SS dependent benefits and increased dependent stipend from the VA.