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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am married but my spouse & I have separate bills. The only

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I am married but my spouse & I have separate bills. The only thing we have together is our home - it is joint. I need to declare bankruptcy for all my debts. Will I be able to do this in my name only & it not effect him or our home.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

If you file a Bankruptcy on your own - without your husband - that will not affect your husband's credit or show up on your husband's credit report.

cfortunato :

However, whether or not your Bankruptcy can affect your home depends on how much - if any - equity your home has.

cfortunato :

To help determine this, please answer the following:

cfortunato :

1) What is the current market value of your home? (How much can your home sell for right now?)

cfortunato :

2) What is the balance on the mortgage(s) for your home?

Customer:

appraisal $230,000.00

Customer:

appraised $230,000.00 in 2010 - balance $198,000.00 - refinanced in 2011

cfortunato :
cfortunato :

Thank you for your response.


 

cfortunato :

Since your home has less than $43,250 equity (current market value minus the balance on the mortgage), filing a Bankruptcy will not affect your home either.

cfortunato :
cfortunato :

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

cfortunato :

Thank you.


 

cfortunato and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.

If I ask another question, will I be charged again? It's concerning same situation but different area.

You can ask another question without being charged again.
Customer: replied 5 years ago.
If I do the bankruptcy will my employer know?
No - your employer will not be notified of your Bankruptcy filing. (Additionally, it is against the law for an employer to discriminate against an employee because the employee has filed a Bankruptcy.)
Customer: replied 5 years ago.
One more question & this will satisfy my question & I'll leave you alone. If divorce is looming for me should I take the bankruptcy before the divorce. We have a prenup so all I would get from divorce is equity in home because it was bought after marriage. I need the 1/2 equity to live on my own.I don't know what is legal. Take bankruptcy before divorce so I can keep my equity if we divorce. Financially I cannot continue with my debts & live on my own w/out bankruptcy or something.
Given the information you provided, you would probably be better off filing a Bankruptcy before your divorce. This is because the Bankruptcy court will be able to take your home's equity if you sell your home before you file a Bankrutpcy - as the applicable homestead exemption does not apply to the proceeds from the sale of your home.
Customer: replied 5 years ago.
My spouse will be keeping the home. I would receive 1/2 equity. So it would be better to go ahead with the bankruptcy before the divorce is filed - am I understanding this right. He knows he has to pay me 1/2 the equity in the home at the time of divorce.
Once you are no longer living in the home, you will not longer be entitled to the homestead exemption, and the money you are paid for your share of the home's equity could be taken by the Bankruptcy court.
Given this scenario, it does make sense to file a Bankruptcy before your divorce.
Customer: replied 5 years ago.
Thank you for your help. It is greatly appreciated. This will end our session.
You're welcome!