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| *Ostroff, Fair and Company>>>Credit |
Bankruptcy Questions and Concerns? |
Good morning all, I hope someone can give me some advice. I live in NY I am going through a divorce now. I currently have the home in my name, but since my spouse and I have called it quits, I won't be able to afford our other bills, let alone legal fees. So I am looking at the chapter 7 option, and it seems that I do qualify for this according to that formula that just started. My question is, thereis only one loan in both my wifes name and in mine. I don't want my bankruptcy to affect her credit, so what will happen with this joint account and also, I have 2 credit cards with 0% and maybe $100 balance on them, do i have to claim them also, because I would like to keep them since there is no APR and hardly any balance. One note, the bankruptcy "shouldn't affect my home as I would like to keep that, and I don't have enough equity in it to claim it as an asset. Lastly, is it the end of the world to have this chaptor 7 even though I will be making mortgage payments on time? 1. Make sure you have an attorney to represent you. 2. If a debt is in her name as well as yours, the creditors may have the legal right to pursue her for the payment. If the debt isn't paid, it will most likely affect her credit rating. Talk to your attorney about perhaps continuing to make the payments on this debt to avoid this problem. 3. You are required by law to list all debts that you owe "as of the date of the filing of the Bankruptcy". Debts that you don't owe (because you paid them off) don't need to be listed. But be warned that even though there's no debt, your card may be cancelled later on when the creditor finds out about the filing. 4. Talk to your attorney about reaffirming (legally agreeing to continue to pay) the mortgage. As long as you keep making payments, you should be fine on the house. 5. Your credit rating will be affected it's true. But it's not the end of the world. Source(s): I am a United States Bankruptcy Trustee in California you can afford the house & you have $100 in credit card bills? you don't sound like a candidate for BK. wrt to your joint loan, tell your soon to be ex to keep making payments. you might be better served talking to your other creditors & trying to work something out rather than getting into BK. If you wife's name is on the account as well and you file bankruptcy on the account then it will show up on her credit that the account was included in bankruptcy. This could negatively affect her credit still since her name is on the account. You should be able to reaffirm the home without any problem and keep the home out of the bankruptcy in a Chapter 7 as long as there is no equity in the home. As for the credit cards you should be able to leave them untouched as well and leave them out of the bankruptcy. However, many credit card companies frequently keep an eye on your credit and if they find out you are filing for bankruptcy or you have filed for bankruptcy they may close the accounts automatically. No bankruptcy is not the end of the world. It is the start of something new and your credit should be good again within 24 months or so. Two of the top reasons for filing or needing to file for bankruptcy are Divorce and medical. Fact: even though bankruptcy levels have reached record highs over the past few years, credit card profits have continually grown even with the amount of bankruptcies. Best of luck to you and good luck with your fresh start. Check out the links below for helpful information. http://fshomeloan.com/index_files/mortga... (credit rebuilding tips for you to use to get your credit back) http://www.gofirstsecurity.com/searchres... (bankruptcy information) I strongly suggest for you to contact Bankruptcy Attorney. In reference to your question of your wife as a co-signer or guarantor and depending which Chapter you qualify in; you can ask your attorney when filling out the paperwork to fill out the Special Co-Debtor Stay. This protects a co-debtor from all collections the same as a debtor. http://www.villarose.com/bankruptcy.htm... |
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