Debt Consolidation Forums Bankruptcy Chapter 7 and Chapter 13 forums

Divorce or no divorce for bankrupty Chapter 13

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My wife and I have about $40000 in unsecured debt, we are at a point where we need to file bankruptcy and have been told that by a credit counselor. The problem is my wife owns half of her grandmothers home and we've been told that the courts would take the house. Her grandmother still lives in the house. Is it possible for me to file bankruptcy on my own without her on it? We've even talked about possibly getting divorced so that I could file bankruptcy and she would not lose her grandmothers home. We are desperate at this point. If anyone could give me some help with this it would be very appreciated. Also, we might want to give up one of our cars in the bankruptcy, would we owe the difference if we do or would that be discharged with the bankruptcy?

In case of chapter 13 bankruptcy no one takes away a house, owned by a single person or jointly.

In a Chapter 13 bankruptcy, you don't have to hand over any of your assets to discharge your debts, but you must utilize your income to pay off your debts over the due course of time ???????? it????????s usually three to five years, depending on the amount of your debts and your income.

For a quick overview on Bankruptcy, please go through the article: -
"Avoid Bankruptcy - Myths, Reality and Alternatives"

From your post it seems to me that you are overlapping Chapter 7 bankruptcy with Chapter 13.

Sub: #1 posted on Wed, 07/30/2008 - 12:20

phoenix phoenix
(Posts: 1445 | Credits: 275.44)

Actually, that may not be the case - Since the home is not lived in by the debtors, it may be considered an investmenet property, and not protected.

Sub: #2 posted on Wed, 07/30/2008 - 21:01

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

So even if I file by myself, would I have to include my wife's assets? If we were divorced, how would it affect her? We live in Louisiana which is a community property state so I don't know how this would work here. Also, what about giving up the car? Would we have to pay the difference after it was auctioned like you do when you surrender a vehicle? Thanks for answering my questions.

Sub: #3 posted on Wed, 07/30/2008 - 23:28


I'd speak to a lawyer about the house to be sure.

As far as the car goes, in a Chapter 7 you would not be responsible for the deliquency balance on the car once it's sold.

Sub: #4 posted on Thu, 07/31/2008 - 01:04

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

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