My husband is close to 300k in debt, most of which are medical bills. Nearly everything is within SOL. He makes 27k a year and I'm a stay at home mom. There's no way we can pay all this off.
We have been discussing him filing Ch7. I'm actually in the process of gathering all his bills so we can see a lawyer. I have very little debt all out of SOL so he'll be filing by himself.
I don't even know anyone that's ever filed BK so I'm a bit out of my league here when he asks me questions. We plan on meeting with a lawyer once I have gathered all the bills. I'm hoping someone here can help with our questions in the mean time.
1) Assets. How do they figure assets? Do they count both of our assets or just his? The only assets we really have are our vehicles, three of which are in his name only and the fourth is in my name only. Of his three, one is exclusively his work vehicle (he's a subcontractor), the second is his backup work vehicle (or I drive it if my car is acting up) and the third is his toy (at least it will be when he gets it fixed up, right now it's just a junky old car). We don't have anything joint. The checking and savings accounts are in my name only. Will my secured card count as an asset? Does his tools and equipment for work count as an asset? He really needs a new wetsaw, but I don't want to pay $1000 for a new one, only to have it count as an asset.
2) Given the number of bills, it's possible we might miss one. How does that work? If we don't realize it until after the discharge, will he still owe it? How do we make sure we get everything? Right now, I'm getting his credit reports to see what's on there, looking around the house for any bills, and calling the health care providers I can remember off the top of my head. Is there anything else we need to be doing?
3) Rebuilding. I was thinking about getting him a secured card right away after discharge. Is there anyone that will give a secured card with a recently discharged BK?
4) Buying a car. We're hoping to do an auto loan so I can get a new car before my old one gives out. How will his BK effect our chances to get a loan? My scores are in the 600 range right now and climbing. Will that help offset the BK so we don't get nailed on the interest rate? Is it even possible to get an auto loan with a recently discharged BK? Would it be better for me to return to work (we've discussed me going back anyway) so I can get the loan on my own?
5) Buying a house. Ideally, we'd like to buy a house in the next year or so. How will his BK effect our ability to buy a house? Again would we be better off with me returning to work so I can get the loan on my own?
6) Effect on his reports. If something is IIB, will it still fall off as scheduled by the DOFD or will the IIB notation make it stay on longer? How long will the Ch7 stay on his reports?
i'm not sure if you'll qualify for ch 7, although it does seem to me you cannot repay the debt with his current income. i am only saying this because it seems you have a lot of assets.
do talk to a lawyer, your case is a tad complicated.
don't worry about car loans, if there is a discharge, your mail box will be flooded with offers from dealerships.
the house might be a challenge since there is a housing crisis right now and banks/lenders are tight with money.
don't worry about scores, if there is a discharge, you can always rebuild by new accounts and challenging your credit reports. bad items fall off reports within seven years...bk ch 7 lasts for 10 years. the public record stays for 10 years (bk), the bad items IIB will fall off in 7, i believe.
don't rush into filing, make sure you take the time to include all debt, usually, your lawyer would pull your credit report, it is your job to verify the debts and include teh debts not in the reports.
Message Edited by whoisjohngalt7 on 02-29-200806:41 PM