Debt and Bankruptcy
Bankruptcy Law
Foreclosure

If you are planning to file Chapter 7 bankruptcy but your spouse is not does that affect their ability to purchase a home or vehicle?

192021

Top Answer
User Avatar
Wiki User
Answered
2005-11-11 03:21:02
2005-11-11 03:21:02

If I'm right a married couple have to file together if the assets are listed together. Not just one can file and not the other. Check with a lawyer and not what others say when it comes to legal matters as this. The bankruptcy laws have changed now. Actually, my lawyer said that I can file seperately since we are reaffirming our current mortgage, and I'm only filing on my credit card debt. What I need to know is if it's OK for my husband to get a mortgage on his own, w/o use of my credit or our joint assets. A spouse can file for BK w/o the other being included. However if there are joint debts or if the married couple live in a CP state the non-filing spouse can be held liable for the repayment of such. In regards to the non-filing spouse being affected by the BK, it should not have any impact with the exception of mutual assets such as checking and/or savings accounts. Any credit application she makes in her name using her own income/assets will not be affected by her husband's bankruptcy. Thank you, Macky. Just wanted to make sure that there are no restrictions on the non-filing spouse, and that the filing spouse won't "get in trouble". From your response and other answers to a similar question, it sounds like this shouldn't be a problem for either spouse.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0

Related Questions


A bankruptcy has nothing to do with your ability to marry. You can marry at any time.

You can file bankruptcy together or individually when you are separated. What happens in your separation could affect your ability to file Chapter 7 and you may have to file Chapter 13 instead.

Believe it or not, the ploy is called a Chapter 20! A so-called "Chapter 20" bankruptcy is the process filing of a "Chapter 7" bankruptcy to discharge unsecured debts, followed by a "Chapter 13" bankruptcy to allow the debtor to catch up on mortgage payments. The 2005 Bankruptcy Reform Act attempts to limit "Chapter 20" bankruptcies by imposing limits on the filing of successive bankruptcies. Under current bankrupcy law a Chapter 13 bankruptcy may be filed only once every two years, and three years must pass after the filing of a Chapter 7 bankruptcy before a Chapter 13 filing. Some debtors attempt to circumvent this restriction by filing for Chapter 13 protection while the Chapter 7 petition is still pending. That option is not available in all courts. In a "Chapter 20" bankruptcy, debtors should be aware that missing even one mortgage payment after filing the initial "Chapter 7" petition may cost them their ability to save their home in a subsequent "Chapter 13" filing.

Income has little to no determination on one's ability to file for bankruptcy. It's the debt to income ratio that most bankruptcy courts look for. Consult a bankruptcy attorney; there may be other options that will not impact your credit as harshly as bankruptcy.

If you have a mountain of debt that will force you to file for bankruptcy, there are two types of protection that you can file for with the bankruptcy courts. The first kind of bankruptcy protection is called chapter 7 bankruptcy. Under chapter 7 bankruptcy, your assets will be liquidated and the proceeds from the sales will go towards paying off your debts. Most remaining debts will then be discharged by the courts. The second kind of bankruptcy that you can file for is called chapter 13 bankruptcy. Chapter 13 bankruptcy is more closely related to debt consolidation in that your debts are reorganized and a payment plan is set up between you and your creditors. Chapter 13 bankruptcy is sometimes called a working man's bankruptcy because one of the requirements of filing for the protection is having a job with a steady income. In a chapter 13 bankruptcy filing, you and your lawyer will devise a payment repayment plan that explains to the courts how you will handle your creditors. Most payment plans allow you to make payments for a period between 30 and 60 months after the initial filing. According to current bankruptcy laws, the debtor must prove to the courts that he will be able to carry out the plan for the duration of the time period. Current chapter 13 bankruptcy laws give judges the ability to factor in your living expenses while repaying your debt. However, federal standards are in place that makes it difficult for judges to customize expenditures on a case to case basis. Chapter 13 bankruptcy can also be a punishment for those that have file for chapter 7 bankruptcy fraudulently. Many people prefer to file for chapter 7 bankruptcy because they will not have to repay most of their debts. However, not everyone qualifies for this kind of protection. In order to qualify for chapter 7 bankruptcy, a person must make no more than $167 over the median income of the state. If the courts find out that a person does violate this requirement, the chapter 7 protection can be revoked and changed to chapter 13. Most people that file for chapter 13 bankruptcy will also be required to attend classes that will teach them about money management and personal finance. If you fail to attend the classes or do not pass, your bankruptcy may be revoked, which will erase any protection that you were granted from your creditors. The laws surrounding chapter 13 bankruptcy are quite complex. Should you ever have to file for bankruptcy, hire a bankruptcy attorney who can guide you through the process. Even though your finances may be tight, hiring a bankruptcy lawyer can save you time and make sure that your interests are protected in the wake of your looming bankruptcy.

Winning a lawsuit will have no impact on your ability to file for Chapter 7 bankruptcy. If you are a judgment creditor, the judgment might become an asset of the bankruptcy estate and the bankruptcy trust might choose to sell the judgment or enforce the judgment for the benefit of your creditors.. if someone files bankruptcy on as credit card does that a third party has charged on and the debt is cleared dose the third party continue paying for a debt that is no longer there

There is not a set figure that bankruptcy courts are looking for when reviewing bankruptcy applications. Rather, they employ what is known as a "means test" in which is the first step in the application process. This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim.

In almost every state, bankruptcy will stay on your record for 7-10 years. This is something to consider when filing because this can have a major effect on your ability to get a house, car, etc in the future.

They are basically the same. Insolvency describes a situation where the debtor is unable to meet his/her obligations. Bankruptcy is a legal maneover in which an insolvent debtor seeks relief. There are two types of individual bankruptcy. Chapter 7 is a "fresh start" in which all debt is forgiven. Chapter 13 is a plan in which debt is settled on the debtors ability to pay (and may be only a fraction of the debt owed).

AFAIK, Social Security has no impact on your ability to file bankruptcy. In fact, Social Security is excluded from the "means test", so unless you have substantial other income you should be able to file Chapter 7.

You will need to file a new Chapter 13 bankruptcy, propose a new Chapter 13 repayment palnt and demonstrated to the Court's satisfaction that you have the ability to pay the plan payments.

Thier actions, or lack, do not effect your ability to file for bankruptcy.

Your chances of getting approval to pay off a chapter 13 bankruptcy plan after 47 months is good. The court will review all information including the ability to pay off the plan.

Just like people, sometimes a corporation accrues more debt than it actually has the ability to pay back. When this occurs, a corporation sometimes declares bankruptcy. However, corporations do not always use the same kinds of bankruptcy that individuals use. The two most common corporate bankruptcy filings are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7, which can also be used by individuals, is for businesses that are giving up entirely. If a company declares Chapter 7 bankruptcy, that company will cease operations immediately. At that point, legal ownership of the company is transferred to the bankruptcy court. When ownership of the company is transferred to the court, a lawyer will be appointed by the court to oversee the rest of the bankruptcy. This will include overseeing the closing of that corporation's facilities. It will also include a liquidation of the company's assets. The assets will be sold, and the proceeds of those sales will be used to pay back creditors that are owed money by the company. Chapter 11 bankruptcy, not used by individuals, is a bit different. Instead of the business being closed, the business is allowed operate normally during the bankruptcy. The goal of a Chapter 11 bankruptcy is the restructuring of the corporation so it can be profitable once again. There is also another potential benefit from this kind of corporate bankruptcy. All or a good portion of the company's previous debts and other obligations may be absolved. This is due to the fact that the goal of Chapter 11 bankruptcy is reorganization. Debt or other obligations that would force a company to go out of business may be removed to help that occur. Obligations other than debt that may be set aside by the court can vary. Usually this includes things such as agreements with unions on employee pensions and benefits, leases for real estate and other expensive contracts. However, even if a corporation attempts to enter Chapter 11 bankruptcy, there is still a risk that the company may be liquidated as part of a Chapter 7 bankruptcy. This can occur if a plan is not agreed upon by the corporation, its creditors and the court. If this happens, the only remaining options are either entering Chapter 7 or returning back to the company's pre-bankruptcy state. Since the company entered bankruptcy because survival without reorganization was unlikely, both choices are rather undesirable.

A chapter 13 MIGHT work if you have the ability to keep your payments current after filing the Chapter 13 and then repaying the past due amount over a period of 3 to 5 years. You ability to find a new lender to refinance the existing loan will depending on your cash flow, equity and ability to pay. You shoulld contact mortgage broker and a bankruptcy attorney to discuss all of the options.

A Chapter 13 lawyer specializes in a specific type of bankruptcy law known as Chapter 13. When filing for any type of bankruptcy, it is typically necessary to get in touch with a lawyer in order to make sure that the debtor is able to receive the maximum benefit from the proceedings. Generally speaking, it is usually better to work with an attorney who specializes in the specific type of bankruptcy that is being filed for. Chapter 13 bankruptcy can be thought of as a form of debt reorganization. This is opposed to liquidation, in which an individual sells off all of their assets in order to pay of the debts that they can. For individuals who can demonstrate an ability to pay off some or all of there debt, but in a different time frame than the original contract required, this may be a better choice. For those who are hoping to keep their property, such as their home and car, this is typically a better option than Chapter 7 bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy are for individuals, not businesses, which typically file for Chapter 11. With Chapter 13 bankruptcy, you first must visit with a credit counselor and give information about all of your debt. A list of monthly expenses is also required. Any money that is left over will be used to pay off your existing debts. Debt to employees, taxes, child support, and so on take the highest priority. Second priority debts are secured debt, like car payments. Unsecured debt, like credit cards, comes last. When you file for Chapter 13, creditors can no longer take legal action against you. The Chapter 13 lawyer will field all calls regarding the debt. If you fail to file for bankruptcy before your home goes into foreclosure, your home can still be compensated. To qualify, the about of debt is limited. Generally, you can not owe more than $900,000 in secured debt and $300,000 in unsecured debt. You must be able to demonstrate that you can repay the debt. Have a Chapter 13 lawyer look over your information to ensure that it is possible for you to handle the payments. If you find yourself in a situation where you are unable to honor the new payment plan, the court may allow you to convert the Chapter 13 bankruptcy into Chapter 7 bankruptcy. At the end of the bankruptcy period, most of your debts will be erased, although child support, alimony, and student loans typically will still need to be repaid.

Filing for bankruptcy is a lot more complicated and time consuming that may initially meet the eye. My first suggestion would be to have a lawyer help you with the process. Successfully completing a bankruptcy proceeding can be a difficult process. However, there is a good deal of work you must do before you can file for bankruptcy. First, you are required to complete a "means test." This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim. The next step involves undergoing credit counseling. Bankruptcy law requires that you complete this counseling before going through the bankruptcy process. Finally, you can file for bankruptcy. In addition to filing, you must submit a bundle of paperwork with the Bankruptcy court. This paperwork includes information about your income, debts, assets, and personal information.

This is the question I get from every one of these clients. Fortunately, the answer is YES! However, when the bankruptcy laws were changed in 2005, various waiting periods were imposed. In every case, you can file bankruptcy again; it's just a question of how long you have to wait.Four Important Notes About Filing a Second Bankruptcy CaseThe first important note you need to know is that the waiting period starts from the date you filed your prior bankruptcy petition and ends on the date you filed your second bankruptcy petition.The second important note is that you only have to wait if you received a discharge in your prior case. If you did not receive a discharge, you can file immediately. For example, if you filed a Chapter 13 bankruptcy case, and it was dismissed because you were unable to make payments, you do not have to wait at all to re-file a second case (provided, of course, that you meet other necessary criteria - speak to an attorney about this).The third important note is if your prior case was a Chapter 13 bankruptcy case in which you paid back your unsecured creditors at least 70%, then you do not have to wait at all.The final important note is that the waiting period does not prevent you from filing again; it just prevents you from getting a discharge. You can still file without waiting - you just do not get the benefit of the discharge. Why would you do this? If the sole purpose of re-filing is to stop foreclosure, you probably do not need to wait several years, as you still get the benefit of the bankruptcy stay in a Chapter 13 case as well as the ability to cure arrears with a payment plan.The Waiting Periods Are 2, 4, 6 and 8 YearsTwo YearsIf your prior case was a Chapter 13 bankruptcy case and your new case will be Chapter 13, then the waiting period is only two years.Four YearsIf your prior case was a Chapter 7 bankruptcy case and your new case will be Chapter 13, then the waiting period is four years.Six YearsIf your prior case was a Chapter 13 bankruptcy case and your new case will be Chapter 7, then the waiting period is six years.Eight YearsIf your prior case was a Chapter 7 bankruptcy case and your new case will be Chapter 7, then the waiting period is eight years.Important Note for homeowners in foreclosure: Even if you do not qualify to file again based on the above criteria, you can still file for Chapter 13 if the primary concern is curing mortgage arrears. In this instance, you will not receive a Chapter 13 discharge, but you will be able to cure all of your mortgage arrears and stop foreclosure.

You will need to discuss this thoroughly with an experienced bankruptcy lawyer. Mortgages usually do not allow a change in title without the consent of the mortgage holder, and it can trigger acceleration of the mortgage and require immediate poayment of the whole balance due. If the wife has good credit and the mortgage is in trouble, it may affect her ability to borrow after the bankruptcy, so don't do it.

Bankruptcy is a life event most people want to avoid; however, it can happen to the best of people. Economic uncertainty and layoffs have led many people to have to file for bankruptcy. Many people just need an opportunity to start over with their financial life. Although it may be a little more difficult, it is possible for people to secure auto loans with bankruptcy on their record. The type of bankruptcy makes a difference. A chapter 7 bankruptcy gives a person the opportunity to start completely over. Lenders will look at the person's ability to pay for the auto loan. Auto loans with bankruptcy on the record may take more creative work, but it is possible to obtain.

No. The amount of debt versus the ability to pay may factor in what type of bankruptcy will be accepted by the court.

Yes. Bankruptcy status does not interfere with a person's ability to collect Social Security or unemployment benefits.

Our attorney told us that our case (including bank records, etc.) would not be reviewed again after the 341 meeting.

Good question. There is a common misconception that bankruptcy is simple to file for and everyone who does so gets approved. In reality, neither of those are true. Successfully completing a bankruptcy proceeding can be a difficult process. However, there is a good deal of work you must do before you can file for bankruptcy. First, you are required to complete a "means test." This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim. The next step involves undergoing credit counseling. Bankruptcy law requires that you complete this counseling before going through the bankruptcy process. Finally, you can file for bankruptcy. In addition to filing, you must submit a bundle of paperwork with the Bankruptcy court. This paperwork includes information about your income, debts, assets, and personal information.

What Chapter Are We Up To?There are two types of bankruptcy. In Chapter 13, you propose a repayment that allows you to repay your debt over time. If the court approves your Chapter 13 plan and you keep making the car payments, then you can keep the car.In a Chapter 7 case, your ability to keep your car depends on several factors. Filing for Chapter 7 creates a bankruptcy estate, and state law determines what assets you get to keep when you file bankruptcy. Equity in at least one car can often be protected, but you need to review the laws of your state.If you own the car outright, the value will determine if it can be protected. In California for example, you can protect about $2800 of the value of your vehicle. If you own a car free and clear that is worth $10,000, the chapter 7 trustee might decide to sell it and give you the $2800. Even if your equity exceeds the value of exemption, the trustee could also decide there is not enough equity in the vehicle to be worth selling.If you owe money on the vehicle and wish to keep it, you have two choices: (1) reaffirmation or (2) redemption. Reaffirmation is an agreement with the lender to keep making payments, and you agree not to receive a discharge of the debt for the car. Redemption is when you purchase the car outright for what you owe on it, which is difficult to do if you don't have the cash or someone willing to lend it to you.The bottom line is that you need to consult a local bankruptcy attorney who knows your state's exemption laws.Usually no, Bankrupts rarely lose their cars because they've gone bankrupt. Of course this is conditional. Talk to your bankruptcy advisors or attorneys.


Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.