My husband has $100k in unsecured debt in his own name with few assets. The only asset he has is the equity in our house which is in both of our names. Will I be forced to file for bankruptcy if he files for bankruptcy? What impact will the bankruptcy cause for our house - can the court force him to sell our house to pay his individual debts? He is trying to work with a debt consolidator to avoid bankruptcy but we are not sure what will happen. thx|||For a question this serious you need to speak with a BK attorney...most offer a free consult....Although there can be some great advise on this board...there are also a lot of well meaning people who do not know what they are talking about.
FYI to Joe: CCCS is partially financed by the credit card industry. CCCS has a financial interest in not recommending filing for bankruptcy. Therefore the advise can be biased in favor of doing what is in the best interest of the credit card companies and not the person in debt.|||Sorry, but the debt is 50% yours.
You are in the same boat, as they say.
$100K is not a lot of money in the 21st Century, you should be able to work out a long-term re-payment plan.
You probably need to get a job to pay your half.|||get a second morgage and use that money to pay off the debit.or tell him to put the house soly in your name or a relative that you can trust and they cant touch the house. if not they could force you to sell the house.|||Depending on how he files. In most cases you can specify what you want to file on. I know many people who have filed and excluded there house. They lost what they filed on but were able to keep there house. His lawyer should be able to advise him on this.|||the answer to your questions are yes, yes, and yes, depending on the amount of equity and if its is more than 5 figures%26gt;10,000 the court will go after the equity. the response that u got saying take a mortgage on the house is probably a good way to go if u have a lot of equity.|||How about the best of all worlds (at least considering your circumstances).
Please contact your local United Way office and ask for a referral to a reputable Credit Counseling Agency. They likely will refer you to "Consumer Credit Counseling Service." They are a true non-profit counseling service. (I'm recommending you to United Way for the actual referral so that you know that I'm not simply a scammer trying to beat you).
A counselor will meet with you (normally at no or an absolute minimal charge) and will help you
1. Set up a budget,
2. Contact your creditors to work out a payment solution,
3. Arrange a single payment to be made to them to be distributed monthly.
I was actually a volunteer counselor for CCCS about 15 years ago and can assure you that they are 100% legitimate and are able to help about 95% of all people who come in. (There are times when they actually will recommend bankruptcy but those cases are really severe).
You're having a tough time but, if you work at it, you'll get through it. Just don't file bankruptcy before you meet with a professional who could help you without it.
Good luck and I really hope this helps!|||You cannot be forced to file bankruptcy. What you do need to be concerned about is the amount of equity you have. Whether the house could be forced to sell depends on various factors:
1. Amount of equity
2. Homestead exemption in your state (varies wildly from state to state)
3. Your share of the equity
4. What's left over when you subtract out your share, and your husband's exemption
5. Take into account expenses of liquidating the house
If there is equity left over after those factors are considered, yes a sale could be forced. But, there is a way to prevent that. If he files a chapter 13 and pays his share of the equity into a chapter 13 (which I assume is less than $100k, but if it's more he'll be paying his unsecured debt in full), then you keep the house, and he gets his discharge in 3-5 years (depending on circumstances)
By ALL means DO NOT transfer the house to solely your name, that will be presumed a fraudulent conveyance and can result in your husband being convicted of bankruptcy fraud which won't help anyone. Also, it is also fraud if you leave things out of your bankruptcy, everything must be disclosed (I realize you are not the one actually planning to file, just saying). The house is included, but it doesn't mean it has to be liquidated.
You need to consult a bankruptcy attorney about this. He/she can properly advise as to the best way to deal with the situation. If none of the debt is in your name there is no reason for you to file.|||There are several options available for you if you are in credit card debt and do not want to declare bankruptcy. One option is obtaining a debt consolidation loan and closing all existing credit lines. Debt consolidation is where you take a new unsecured loan and use the funds to pay off your outstanding debts. All this does is revolve your debt so it鈥檚 not really a wise choice.
What an unsecured debt consolidation loan will do is consolidate all your unsecured debt and help you avoid bankruptcy. This new money can save you hundreds of dollars per month if you choose to use your loan to pay off existing debt - especially high rate credit cards. Even if you don鈥檛 own a home, you could qualify for their debt consolidation loan. But don鈥檛 forget now you will have to pay this loan back.
Debt consolidation loans are repayable over a longer term at a relatively low interest rate. This means that the monthly repayments are lower. If the loan is secured on your property then the interest rate and payments may be even lower.
But you must compare the pros and of debt consolidation loans before taking the plunge. There are two options for consolidating debts 鈥?either you borrow money to pay off all your debts or seek assistance from a debt consolidation program. Which option will meet your needs has a lot to do with whether you can qualify for qualify for low mortgage rates on debt consolidation loans, and the total amount of debt you need to consolidate.
Borrowing for debt consolidation immediately eliminates multiple debt payments. All debt collection actions eliminated. Seeking debt consolidation services immediately decreases your monthly payments. It also brings to a stop, and in some cases, eliminates some interest and fees. All you do is pay ONE LOW monthly payment when choosing a credit counseling program.
Debt consolidation is an excellent tool that can help you manage and decrease your debt when you just can't seem to do it on your own. There is no way that you can completely fix bad credit without the ability to reduce debt and pay your bills on time. However, once your debt has reached a certain level, this can seem almost impossible to accomplish.
A credit counselor can provide you with the option of enrolling in a debt management plan, which provides immediate relief and allows repayment of debts without the high fees and negative ramifications of bankruptcy.
However, your choice has to be based upon your financial situation, as well as fit in with your own situation. A debt consolidation program is the better choice of the ones given above.
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