Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law

Here is my situation I was divorced a couple years ago,

Customer Question
Here is my situation: I was...
Here is my situation:

I was divorced a couple years ago, wife got the house and the mortgage, and the second mortgage in the divorce. I just finally have discovered the mortgage and the second mortgage still have my name on them and they will not be removed. My name is XXXXX XXXXX house. So I now have about $500,000 of debt on my name with no asset to offset it at all.

Also, my exwife just did a mortgage modification because she can barely afford the payments. She has no intention of selling the house soon and when she does, it probably will not sell for enough to cover the mortgage and 2nd mortgage. There is a possibility she will end up filing for bankruptcy at some point.

Besides that I have:
minimal assets
Personal loan debt around $10,000

I also and the gaurantor of a small business credit card account with about $13000 of debt on it. That business is on the verge of bankruptcy.

So, I am thinking perhaps I should file Chapter 7. My goal would be get my name off the 2 enormous mortgage loans - since at any point my ex wife may file for bankrupcy plus these beasts make it impossible for me to ever get a loan for anything. I would hope to also clear the personal loan debt and remove my liabiity fromthe business credit card debts.

I have a solid job and same employer for past 11 years.
I would probably be interested in buying a house in perhaps 2 years.

What do you think? Is Chapter 7 a decent option for me?
Submitted: 6 years ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 5 minutes by:
8/7/2011
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
Hi JACustomer,
Chapter 7 Bankruptcy is an excellent option for anyone who is struggling to pay their bills, or who cannot pay their debts, and who does qualify to file.
To help determine this:
1) How many are currently in your household?
2) What is your gross monthly income?
3) Do you have to pay child support or alimony? If yes, how much do you have to pay per month?
Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
1) I live with my girlfriend. She pays me for rent. But I think my household is still 1 right?
2) Gross monthly pay: About $5300
3) I pay $400 month in child support
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

Assuming your girlfriend contributes at least $369 to the household (you have a household of 2), you earn too much money to file a Chapter 7, where you would be able to have all debts discharged without having to pay anything.

However, you should be able to have your debts discharged by filing a Chapter 13 Bankruptcy - where you would have to pay all disposable income (gross income minus allowable expenses) to the Bankruptcy court for 5 years. At the end of the 5 years, the balance of your debts - including the mortgages - can be discharged.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

 

Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
Since my girlfriend counts as a member of the household, does that mean her income also must be considered in the Means test so I can file bankruptcy?
Customer reply replied 6 years ago
Also, I just double checked my income numbers. My Gross income is actually more like: $4100/mo
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

1) What is your girlfriend's gross monthly income?

2) How much of her income does she contribute to the household (rent, food, utilities, etc.)?

Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
1) My girlfriend makes $1590 per month
2) She pays $460 rent and utilities, and $400 a month for food so total $860/mo
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
Given the information you provided, you can gross up to $4,391 per month, and be able to file a Chapter 7 Bankruptcy. So - yes - you do qualify to file.
Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
Great- it is an option. I suppose that is inherently part of my question.

But the question I really need answered from an expert:
Is Chapter 7 a decent choice for me? Is it a good idea based on my circumstances? I now know I can do it, but should I do it? What is your expert opinion?
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

I answered that question in the very beginning (my first sentence in my first reply), but here it is again, and in more detail: I think Bankruptcy is an excellent option and a great idea for anyone in your financial position. With a Bankruptcy, you can start over, and live a life without the stress of wondering what the mortgage companies are going to do.

If you do not file, and if your ex-wife stops paying the mortgages, the mortgage companies can get judgments against you. Those judgments can be used to garnish your wages and bank accounts, and to place liens on any property you own.

It is true that your credit score will decrease substantially once you file, but if you have no more negative credit activity, your credit score will start to improve in approximately one year after you file. Additionally, you will be able to get credit again (if you want) in about one year after you file, and you should be able to get a mortgage for a house in about 1 - 2 years after you file.

cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
cfortunato and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Customer reply replied 6 years ago
Thanks. Your first answer seemed just like a standard cookie cutter reply- I wasn't even sure you read my particular details. All you said was:

"Chapter 7 Bankruptcy is an excellent option for anyone who is struggling to pay their bills, or who cannot pay their debts, and who does qualify to file."

I think you have now given me more detail specific to my unique situation. Thanks!
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
You're welcome! And thank you for accepting my answer!
Ask Your Own Bankruptcy Law Question
Ask cfortunato Your Own Question
cfortunato
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
8,023 Satisfied Customers
Experience: Bankruptcy professor.

cfortunato is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I have the same question. I had a Chapter 7 bankruptcy 13
I have the same question. I had a Chapter 7 bankruptcy 13 years ago. I have not seen on my credit report for the last 6 years. The SBA question says have you ever had a bankruptcy? Is it fair to say n… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,287 satisfied customers
Can credit card debt be listed on schedule j under other
can credit card debt be listed on schedule j under other question 21 … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,372 satisfied customers
What happens i file chapter 7 bankruptcy and judge denies my
Second opinion] What happens i file chapter 7 bankruptcy and judge denies my reaffirmation agreement...will they repo my car or will the co signer be able to keep it… read more
DrakeLAW
DrakeLAW
Juris Doctorate
978 satisfied customers
I am probably going to need to file a Chapter 7 bankruptcy
I am probably going to need to file a Chapter 7 bankruptcy in Minnesota because Geico is suing me for $100K for personal injures sustained by someone else that was involved in an accident. I am fighti… read more
DrakeLAW
DrakeLAW
Juris Doctorate
978 satisfied customers
I have a chapter 7 in process in las vegas, nv. I have a
I have a chapter 7 in process in las vegas, nv. I have a court date set for a reaffirmation agreement for my mortgage. I would like to change my court date to a more current date. What motion with the… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,356 satisfied customers
I filled chapter 7 and discharged a mortgage with Wells
I filled chapter 7 and discharged a mortgage with Wells Fargo in 2009. I did not reaffirm the mortgage but I continued making payments for these eight years. I requested a payoff from Wells Fargo and … read more
DrakeLAW
DrakeLAW
Juris Doctorate
978 satisfied customers
I have filed a chapter 7 back in June of this year.. today I
I have filed a chapter 7 back in June of this year.. today I got into an accident to which the other party was at fault.. i has to go to the hospital... if I am … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,869 satisfied customers
Interested in information concerning personal chapter 7
interested in information concerning personal chapter 7 bankruptcy as a member of a 50/50 LLC … read more
DrakeLAW
DrakeLAW
Juris Doctorate
978 satisfied customers
Regarding my chapter 7 ProSe on the Reaffirmation $2000
Regarding my chapter 7 ProSe on the Reaffirmation $2000 behind on payments, $6000 equity in car Obviously, we don't want to be Repo'd with all that equity.My husband went to the reaff hearing today an… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Regarding my chapter 7 Reaffirmation hearing tomorrow,
Regarding my chapter 7 Reaffirmation hearing tomorrow, husband is going without me. $2000 behind on payments, 6000 equity in car. When I try to talk to the people at "ascension capital" who do Cap1's … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,356 satisfied customers
BANKRUPTCY: A debtor wants to file a personal Chapter 7
BANKRUPTCY: A debtor wants to file a personal Chapter 7 bankruptcy and owns a small business. They are filing mostly consumer debts. Can the Debtor continue to run their small business and generate in… read more
LegalGems
LegalGems
Juris Doctorate
10,698 satisfied customers
My questions center around Chapter 7 bankruptcy. We have
My questions center around Chapter 7 bankruptcy. We have consulted with local attorneys, and want to verify the information we have received. We live in California, and have a household of 3 people (m… read more
socrateaser
socrateaser
1,031 satisfied customers
This is a Chapter 7 question. The Debtor was unemployed for
This is a Chapter 7 question. The Debtor was unemployed for 4 of the last 6 months, having worked the last 2 months. Her currently monthly income amount is above the local median, but averaged over th… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
My parents filed chapter 7 bankruptcy. They received a
My parents filed chapter 7 bankruptcy. They received a letter back from the attorney they hired and the letter stated, "they are over the limit on the allowable exemptions for a chapter 7".What does t… read more
Ray
Ray
Lawyer
Doctoral Degree
30,865 satisfied customers
I have substantial credit card debt, and i am currently
I have substantial credit card debt, and i am currently unable to make the monthly payments.… read more
Ray
Ray
Lawyer
Doctoral Degree
30,865 satisfied customers
Can I rent to own a home in Tennessee with chapter 7 and
Can I rent to own a home in Tennessee with chapter 7 and chapter 13 bankruptcy on my credit?… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
How do I find out if I qualify for chapter 7 BK Assets 2000
How do I find out if I qualify for chapter 7 BK Assets 2000 Med Bill Debt 22k Tax Debt 12K ( over 3 years old I have been making payments) Card Debt 9K Collections 7K Income SSec 1611 per month… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,356 satisfied customers
Filed chapter 7 and received discharge, massachusetts dept
filed chapter 7 and received discharge, massachusetts dept of revenue seizing assets and not honoring discharge. how do we make them stop, remove liens and return seized money? … read more
Amadeo Rivera
Amadeo Rivera
JD
82 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x