chapter 13 being dismissed, life in shambles

[thebee7777]

What is the name of your state? What is the name of your state? Ohio! I've been married 19 years to a man who came from russia. He doesn't seem to have the same social mores that we do. i've tried to forgive all the infidelity, lies, and illegal business practices and stay with him..but he has dragged me, my credit rating down so low, that I'm so overwhelmed, I can't seem to prioritize, what to do first, second, etc.
Here's where I stand right now, and please understand that it's not stupidity, that I find myself here, but rather steadfastness and perseverance worthy of sainthood, and, ok, some major gullibility.
Due to his illegal actions, not paying bills, including mortgage, credit cards, utilities, legal fees, and refusal to get a job, our debt borders on the $250,000-$300,000 dollar range. He's an excellent and charismatic persuader, and gets the mail before I can, and hides the bills, disconnect notices, and collection notices, and the first inkling I get is the electric co, water co, or court server at the door with a shut off notice.
We filed chapter 13 last Oct 2001, recieved a 3% payback rate, with an agreement to pay the trustee $1865.91/mo. My husband made 2 payments, and then stopped. A motion to dismiss was filed, to which our lawyer advised not to respond to, and let them dismiss this chapter 13, since I am not presently employed, and it would take a few months to reactivate my nursing license, and be able to make the payments, and husband won't get a job. We're currently in the public assistance program, but that isn't moving fast enough or able to provide enough emergency assistance, to help much. Husband has agreed to sign a dissolution, and do whatever will help me come out of this the least unscathed as possible. Most of the unsecured debt is in his name as are the utilities. The mortgage is in both our names and I have about $10,000 unsecured credit card, and medical bills debt. The mortgage is 7-8 months in arears, as the chapter 13 wasn't payed for that long. The lawyer said we would have to come up with $20,000 to stop the dismissal, and advised to let this one go and that I get gainfully employed as soon as possible and file for my own chapter 13, before a foreclosure moves beyond the point of no return. In the interim, we should get a dissolution, and he can file chapter 7 for his debts. The house was appraised at $115,000-low, but needs quite a bit of repair, like roof, siding, bathroom, and flooring, new liner for inground pool. I'd like to also include that there are leins on the house, and that my husband's satelite business debts were why the debt was so high and why we were advised to file chapter 13. We have no equity in the house that goes beyond the exemption for Ohio.
I need advice as to what to do, that would be in my best interests, as I would like to eventually purchase a rural property and start my own greenhouse/nursery business , someday.
Help, I'm losing my mind, trying to consider all of my options, when I'm not exactly clear on what they are.
Thanks- Deb alias-thebee7777

 

[Ladynred]

Wow.. that's a horror story if ever I'd heard one !

Sounds like a Ch. 7 would be more beneficial to you, except for the house. If you file individually and let go of the house (you can't reaffirm with payments in arrears), your husband would then have the entire burden of it. It seems he doesn't care about it anyway and you get a real fresh start. It would take 3-4 years to get beyond the worst of it and build some credit back up and you could still start your own business.

Its just my opinion, of course.

Are you certain that your name is not on any other credit ? Have you pulled your credit reports to be sure ? If he's hidden all kinds of things and engaged in other illegal activities, I'd be paranoid enough to check everything out before you get surprised.

 

[thebee7777]

Ohio: Thanks for the reply ladyinred.....I love the idea of a fresh start with chapter 7, but here's the problem. I have many specimen plants and landscape plants that are the basis of my future nursery business. If I let the house go in foreclosure, how am I to have a place ready to move them to.....a rental property wouldn't do. I'd have to have a permanent place to transplant them to. Is that my only option, pay rent someplace before being able to purchase a new homestead? What about all these emails I've been getting, stating you can purchase property, with no money down-past bankruptcies, foreclosures, bad credit-no problem?

 

[Ladynred]

Those e-mails you've been getting are mostly SCAMS, unfortunately. Even if they are barely legit, the interest rates you would have to pay IF you could get a loan will be horrendous. Credit "repair" offers, 'avoid bankruptcy', etc, etc.. all scams or they are so costly in the long run that they are not worth it.

I understand about needing a place for your plants, that makes it a tougher decision for sure. Does it have to be a permanent planting ? I just managed to keep a meager flower garden going when I had my house so.........

With all the work that your current home needs, can you afford to keep it in your own Chapter 13 , providing you can save it in time ? If something that is now in disrepair goes 'critical' consider how you're going to pay for it while under the Ch 13. If its going to end up as a money pit it may not be worth it in the long run.

I'm not trying to convince you of anything here... but these are my thoughts given what you've posted about your situation. If you can afford it and really want to keep it, then, of course, that's what you should go for

 

[HomeGuru]

Your case was a Chapter 7 from the start.

 

[thebee7777]

Ohio! Thankyou so much for answering my questions so fast......would you mind elaborating, Home Guru? The reason a chapter 13, for me, alone, was an option, is because I'm in the process of reactivating my nursing license....I'm not sure how long the process takes, I'll know in about 2 weeks. The minute it's activated, I can start earning approximately, 4-5K a month, the day after I apply for a job. The only reluctance I have in entering into a chapter 13, is, the 5 year commitment. I'm really handy in the home-improvement and repair stuff, and can do most of the stuff myself. The roof is another matter, because the pitch is extreme and I seem to have age-induced acrophobia, but I can get a roof over the existing one, for much less than a redo, since there's only one layer of shingles on it. Now, my question is, what are my options, during the 5 year course? Can I refinance or sell it? And if I can sell it, at a profit, can I keep the money from the proceeds, above and beyond the payoff of the chapter 13? Be assured, the criminal mastermind, will not be coming along for the ride. Any information, even things, I've maybe forgotten to ask, is greatly appreciated, because, I seem to go blond in the free consultations with bancruptcy lawyers.
Thanks again, Deb

 

[bigun]

Your best bet is to put this entire sorry mess behind you. File a Chapter 7 and walk away. With 2 years of good credit post bk, you'll qualify for FHA financing at conventional rates. With the kind of money you'll be making, you are better off putting it in the bank as opposed to a putiing it into a money pit like the house you described.

 

[MSWCCC]

Get the back mortgage caught up NOW, even if it means letting the rest of the bills slide and the chpt. 13 dismissed. Then file chapter 7 and reaffirm the mortgage, but you must be caught up first. In Ohio, the homestead exepmtion is up to $5,000 or "Property held as tenency by the entirety may be exepmt against debts owed by only one spouse" (NOLO Press). Be prepared to take out the equity though, but at least you'd keep your house.