jss001
New
Reged: 05/12/08
Posts: 15
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Separated in late 2007. Have been fighting out custody/visitation issues in court since then and finally got that resolved a few weeks ago in a JCC ruling -- thank God! STBX was pissed and ended up quiting her job and secretly filing for Ch 7 bankruptcy 1 week later -- presumably so I would get stuck with 100% of the marital debt. Live in CA so I'm subject to some pretty screwed up "Community Property" laws. Nice!!! Fortunately, I found out last week and am scrambling around figuring out what to do now. Atty has told me that we can file a Motion to Lift Stay with the bankruptcy court and then proceed with a MSA that will include a provision that a) either spouse is "held harmless" in the event of default on debt or b) msa debts are non-dischargeable. Problem is she would NEVER sign an agreement with these provisions now that we know her intent.
If her bankruptcy petition goes through I'm screwed -- make too much to file for Ch 7 myself -- Ch 13 monthly payment of $1200+ (all her debt) for 5 years would bury me alive. Already struggling to pay attorney bills, $1k month in child support, my bills, housing, etc.
Spoke with one bankruptcy atty that told me to quit my job and then file for 7 in 6 months. Sounds like a pretty stupid option given that I've been on my job for 10+ years, have benefits, support myself/my son on this income, etc.
If anyone has any experience/knowledge of what to do in this situation please let me know.
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jbar
Platinum
Reged: 12/16/06
Posts: 977
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I guess you mean that you make more than the median income for a family of your size, and therefore don't qualify for ch. 7 even if you end up deeper in the red at the end of every month, after paying all of your bills and debts.
You shouldn't have to quit your job altogether, but only reduce your income enough to not exceed the maximum income allowed. You should then be able to file for ch. 7 and get any non-secured debts discharged up to the point that you have no more than $100 left at the end of the month, after paying your living expenses and secured loans off. If you would still be in a bind after this, then you can either reduce your living costs, sell any equity you may have in items bought thru secured loans, or allow the lender to reclaim his "security" on these items. Remember, although a car and a house are generally bought thru secured loans, once you get the bankruptcy they (one of each) are exempt from seizure, even though the debt is not discharged.
Disclaimer: Not legal advice
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What will I lose
Platinum
Reged: 05/21/07
Posts: 705
Loc: PA
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any chance of running up a ton more debt then waiting and making good payments for a while so you can say it wasnt fraud? that way you are so far under they have to ch 7 you?
obviously an insane idea but thankfully i got in under the old law and i really appreciated that i did. Good luck
i dont agree with that atty to quit your job. thats nuts
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call me WWIL...PA resident 39 year old , married 11 years, together 12...splitting in 13th year.
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allthumbs
Platinum
Reged: 07/12/07
Posts: 360
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" Problem is she would NEVER sign an agreement with these provisions now that we know her intent."
________________________________________________________________
Not her decision if a court rules it. IMO, I'd enter an ex parte motion with family court asking the court to:
1) decide who is to continue to pay the marital debts
2) impute income to the stbx since she voluntarily quit
3) ensure that the debt payer gets full credit in the property settlement for paying the other party's share of the community debt. It is an Epstein/Watts issue, in a way.
Bankruptcy doesn't happen overnight. Sure, the moment you file, you get relief from creditors harrassment, but the court still has to approve the bankruptcy. You maybe able to file a motion/protest with the bankruptcy court as well, as a co-signer to many of your stbx's notes.
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