Help Please? - Questions About Disability Income and Payments

[chilibill]

What is the name of your state? Florida

I am about to file Chapter 7. All my savings and assets were exhausted during a long illness. My debts were incurred prior to my marriage to my wife. Our home and vehicle are in her name. The lot next to our home is in both of our names as is the loan for it. The value of the land is around $11K and we owe nearly $9K. My wife and I receive Social Security disability. I receive military retirement pay and disability allowance from the Veterans Administration. Because of medical problems we are unable to work and have no other income.

My wife’s Social Security benefit is not enough to make the house payment, but it does cover the vehicle payment and some of the utilities. I make the house and land payment and pay the rest of the bills. With our medical expenses we have nothing left over by the end of the month.

Since I am not the owner of the house, but I live there, am I allowed to claim the mortgage payment and utilities as my expenses? The adjacent lot is in both our names, but since we have so little equity, will a trustee be inclined to make us sell it? Since my debt was incurred prior to my marriage, can any of my wife’s assets be considered by a trustee?

My ex-wife was given my former home in the divorce. The divorce states she is responsible for the payments, but I am still responsible for the mortgage through my VA guarantee and it still shows up on my credit report. Can a trustee view my former home as an asset?

It has been more than 18 months since my last payment to companies such as Citibank, Capitol One, American Express, MBNA, Bank One and Beneficial. The calls from the collection agencies seem to be coming less frequently. Could these companies have evaluated my assets and realized I am not worth suing or is this perhaps the calm before the storm?

 

[Ladynred]

Since I am not the owner of the house, but I live there, am I allowed to claim the mortgage payment and utilities as my expenses?

Technically its not your debt, but if its a 'normal expense', per whatever arrangments you have with your, you may be able to use it. You really need to consult with an attorney.

The adjacent lot is in both our names, but since we have so little equity, will a trustee be inclined to make us sell it?

Its a possibility, but your interest in that property is only half the value and with that little equity it may not be enough for the Trustee to bother with.

How is the deed for that land recorded ? Is it 'tenancy in entirety' ? The FL homestead exemption, which is unlimited, allows that property deeded in that manner may be exempt from the debts of only one spouse. Since the property is NOT a homestead, it may not apply.

Since my debt was incurred prior to my marriage, can any of my wife’s assets be considered by a trustee?

NO.

My ex-wife was given my former home in the divorce. The divorce states she is responsible for the payments, but I am still responsible for the mortgage through my VA guarantee and it still shows up on my credit report. Can a trustee view my former home as an asset?

How is the former home deeded ? Is your name still on it ? If so, then its an asset of yours. How much equity is in it ? You're going to have to claim that mortgage on your schedules if your name is on the mortgage, regardless of who's making the payments. Secured loans aren't discharged in Ch 7, so you'll have to reaffirm on that to keep the lender happy.

Could these companies have evaluated my assets and realized I am not worth suing or is this perhaps the calm before the storm?

Its very possible that any one of them have done an asset search, its easy for them to do. Its likely that you're in the eye of the hurricane for now on the calls. Collection agencies won't hold onto accounts that they're not collecting on for very long. The typical time frame seems to be 90 days - if they get nothing from you, they resell it to another CA.

Considering the property issues, I hope you're going to seek out a good bankruptcy attorney.