12-16-2012 07:51 AM
First of all Im new here so I apologize if I am posting too many new threads.. but you all have been AMAZING so THANK YOU!
Ok..anyways... I am currently going through a divorce and we have about 40k in cc debt and we also own two homes. I also have about 40k in student loans. The homes are rented out and my ex is collecting money from the renters, which he is suppose to be using to pay the mortgages, but for the past 5 months he has always been late/past due (usually 30-60 days) on those mortgages. My ex and I agreed we need to get rid of the houses, but he wants to sell in summer and I want to do it ASAP. One is under water by about 20k and the other we might make 5k.
We just started the court proceedings so I am not sure what the judge will order as to who gets what debt, but we both are on most, if not all of the cc. I am assuming judge will split the cc. Anyways, I am sick of dealing with debt and my ex.. and I will be filing for BK as soon as the divorce is final. HOPEFULLY by March or so. I have several questions...
Do I put all CC on my bk (even ones without my name) as we are in a joint property, or whatever they call it, state?
What happens to the mortgages and CC after I file? Do they all go to my ex?
12-16-2012 09:18 AM
Sounds like you are in a community property state. So, if you do decide to file BK after your divorce is finalized, make sure to list all the debt.
IMO, based on your limited post so far, it would be best to sell the properties prior to your divorce. It will make your divorce that much less complicated. You will need to join in on the sale anyway since you are on the deeds (if you are on them) AND especially since you are short on one of the properties. Make sure to check the values, in many markets right now the housing values are jumping up quickly and spring is prime time to get top dollar for your home(s). You may find that the property you think is underwater may actually break even or return a few dollars. In a rapidly rising market like we have right now, it is best to wait until Spring unless there are other factors that make the wait impossible. If in fact there is a $20k shortfall, then doing a short sale is very easy. The divorce is your hardship. Check with experienced short sale agents in your area to get an idea of the process. You will need to work together with your soon to be ex in order to get it done as the paperwork requires all the parties on the note, mortgage and deed. Even if you are divorced prior to the sale, you and he will need to cooperate to complete the sales.
Just a note for you to remember regarding your divorce, even if the PSA states the split on the debt, the creditors ignore the PSA (property settlement agreement) because they are not a party to your divorce.
As to the BK, if you file and are successfully discharged, what ever debt you and your soon to be ex have will then be 'pushed over' to the non-filing spouse. Naturally this doesn't apply to student loan debt. Check with a BK attorney for details.
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