Need Help ASAP

[dcw888]

What is the name of your state? Arkansas
Short version of a long story...
Divorced in Feb 2003
Living & sharing expenses with a co-worker who was also divorced this year (we also share a checking account)
My Ex recently filed Chapter 13 & now it is going to force me into filing
I want to file a Chapter 7 because he listed the house on his and I am a cosigner. He kept the house but is going to let it forclose.
We had filed a joint Income tax return in 2001 & now his taxes owed are coming after me.

My total debt:
1St mortgage: $75,000.00
2 & 3rd mortgage (including fees etc.): $42,000.00
2001 Income tax: $2500.00
My Credit Card: $9800.00
My Credit Card: $1500.00
Car Loan: $17000.00
Divorce Attorney's unpaid Fees: $1200.00 (there is a "lien" on my EX's inheiritance to pay these out of my settlement of $5000.00. Now as to IF I will ever see this money...)
Savings Accounts: I have 6 accounts that were set up for my children & grandchildren. The max in one Account is $250.00, the rest only have the required $25.00. They are all with my Credit Union
My Gross Income Monthly: $1725.00

Questions:
Am I able to file a Chapter 7?
Do I need to have my own Checking Account or can I explain the joint account with my roommate?
Since our expenses are shared (mine & Roommates) do I list half of what monthly rent/ultilities,etc. are?
Will/Can the 2001 Income Taxes be written off?
What will happen to my childrens & grandchildren's Savings accounts?
The only assest I have & want to keep is my Car, can I?

PLEASE, I have been under so much stress this past year due to divorce & now this. I was able to pay my debt until he filed & now I am ready to throw in the towel. HELP!!!

 

[Ladynred]

Am I able to file a Chapter 7?

On the surface it certainly looks like it. Unless you've got a lot of other non-exempt assets, Ch 7 should work.

Do I need to have my own Checking Account or can I explain the joint account with my roommate?

Getting your own account isn't a bad idea, as you'll have to be able to separate your co-workers funds from yours. It'll be easier to do that if you separate the accounts.

Since our expenses are shared (mine & Roommates) do I list half of what monthly rent/ultilities,etc. are?

If that's the arrangment, that's what you list. You have to be truthful, leave NO chances for questions.

Will/Can the 2001 Income Taxes be written off?

Not likely. Only taxes due that are 3 years old or older are subject to discharge. However, depending on how your taxes were filed you may be eligible to file an 'injured spouse' exemption with the IRS.

What will happen to my childrens & grandchildren's Savings accounts?

Is your name and SSN on these accounts ? I suggest you ask a lawyer about this one. Depending on how the accounts are set up, they may or may not be exempt.

The only assest I have & want to keep is my Car, can I?

You can reaffirm the loan (new promise to pay) and keep it, or you can let it be discharged and keep paying and still keep the car. Reaffirmation is NOT mandatory and has to be approved by the BK court. If you don't reaffirm, but keep paying, then if anything happens and you decide you can't keep the car, you walk away with NO liability.

You need to get a couple of free consultations with BK lawyers to get an accurate picture of what you're dealing with. Keep in mind that in AR, FEDERAL exemptions ARE available to you (AR's exemptions are pitiful).

 

[dcw888]

Ladynred,
Thank you for your timely responce. I used a copy of my ex's filing as a format to estimate my own check & balance sheet.
Would you (or anyone else) give your opinion as to any red flags.
Assets: Real Estate: $107,023.57
Owed on Real Estate: $122,458.33
Personal Property:
Cash on hand: $6.00
Checking: $7.36
Savings (Credit Union & my car loan is there & I can't touch this) $238.69
Savings Accts for 3 children & 3 Grandchildren: $593.59
Household Goods: $400.00
Books,Art, Etc.: $75.00
Clothing: $150.00
Jewelry: $25.00
Contingent & noncontingent interest in estate: $3800.00
(note- this is doubtful that I'll ever see this, but it is the lien I have on my ex's share of an estate)
Old PC: $25.00

Debt:
Unsecured Priority Claims: 2001 joint tax $2850.99
2 personal debts: $7000.00
Car: $12068.39 Car Worth: $10950.00
Visa: $1448.72
Master Charge: $8991.13
Divorce Attorney's Fee: $1200.00 (there is a "lien" on his share of that estate to pay this)
Personal Property Tax 2002: $101.91
Cell Bill: $432.80

Monthly Net Income: $1437.31

Monthly Expenses:
(this is my share, as I have a roommate who splits the cost with me)
Rent; $280.00
Electricity: $40.00
Telephone: $20.09
Food: $216.00
Clothing: $10.00
Laundry: $34.67
Medical & Dental: $0 (need to go desperately but can't afford it)
Transportation: $119.83
Recreation: $10.00
Charitable: $ 0
Auto Insurance: $90.00 & going up due to credit rating
Life Insurance: $35.00 (my policy)
Personal Property Taxes: $9.25
IRS Tax pmt: $50.00
Car Pmt: $257.00
Visa: $60.00
Master Charge: $179.00
Cable: $31.06
Cell Phone: $46.06
Personal Care: $24.00
Holidays/Birthdays: $30.00
Postage/POBX: $8.25
Attorney's Fees: $100.00
Tobacco Expense: $117.00
Total Monthly Expense: $1767.21

Does this sound unreasonable? Any Comments?
Chapter 7 or Chapter 13?

 

[HomeGuru]

Ladynred,
Thank you for your timely responce. I used a copy of my ex's filing as a format to estimate my own check & balance sheet.
Would you (or anyone else) give your opinion as to any red flags.
Assets: Real Estate: $107,023.57
Owed on Real Estate: $122,458.33
Personal Property:
Cash on hand: $6.00
Checking: $7.36
Savings (Credit Union & my car loan is there & I can't touch this) $238.69
Savings Accts for 3 children & 3 Grandchildren: $593.59
Household Goods: $400.00
Books,Art, Etc.: $75.00
Clothing: $150.00
Jewelry: $25.00
Contingent & noncontingent interest in estate: $3800.00
(note- this is doubtful that I'll ever see this, but it is the lien I have on my ex's share of an estate)
Old PC: $25.00

Debt:
Unsecured Priority Claims: 2001 joint tax $2850.99
2 personal debts: $7000.00
Car: $12068.39 Car Worth: $10950.00
Visa: $1448.72
Master Charge: $8991.13
Divorce Attorney's Fee: $1200.00 (there is a "lien" on his share of that estate to pay this)
Personal Property Tax 2002: $101.91
Cell Bill: $432.80

Monthly Net Income: $1437.31

Monthly Expenses:
(this is my share, as I have a roommate who splits the cost with me)
Rent; $280.00
Electricity: $40.00
Telephone: $20.09
Food: $216.00
Clothing: $10.00
Laundry: $34.67
Medical & Dental: $0 (need to go desperately but can't afford it)
Transportation: $119.83
Recreation: $10.00
Charitable: $ 0
Auto Insurance: $90.00 & going up due to credit rating
Life Insurance: $35.00 (my policy)
Personal Property Taxes: $9.25
IRS Tax pmt: $50.00
Car Pmt: $257.00
Visa: $60.00
Master Charge: $179.00
Cable: $31.06
Cell Phone: $46.06
Personal Care: $24.00
Holidays/Birthdays: $30.00
Postage/POBX: $8.25
Attorney's Fees: $100.00
Tobacco Expense: $117.00
Total Monthly Expense: $1767.21

Does this sound unreasonable? Any Comments?
Chapter 7 or Chapter 13?

**A: quit the tobacco use and put the cell phone on hold. Then you'll have enough for medical insurance.

 

[dcw888]

I have medical insurance, but cannot afford the co-pay.
And yes, you are right about the tobacco usage. Not to sound as smug as some, I just wonder where you were with all your wisdom 32 years ago.
I just cut off the house phone & kept the cell phone, due to working the mid-night shift.
But, thank you for your responce anyway....

 

[Ladynred]

Looks fairly prime for Ch 7, I only have a couple of comments.

1 - Credit cards are not priority unsecured - they are NON-priority unsecured. Unless you want to stop the cell service and have what you owe discharged, you don't list it as a 'debt', its a 'normal expense' you can include. The 'personal debts' should also be listed as non-priority unsecured.

2 - Take the credit card payments OUT of your living expenses, as they are NOT 'normal living expenses'.

If you could afford the dental work if you were NOT paying your creditors, what would that approximate expense be ??? If you COULD make the co-pay for dental w/o the debt payments, then put a number in that expense. Your 'normal living expenses' are what you'd pay if you weren't giving up things like that to pay creditors - don't leave it out

 

[dcw888]

Thank You Ladynred

First off, I want to tell you how much I appreciate your timely responces. I know everyone here has there own "sad" story. I was married for 26 going on 27 years, which I thought were the best of my life. We had gone through everything & had raised our 3 children & were just starting to enjoy our grandchildren. Then my Mother died. My Ex's Father died, then his Mother (which affected a family business we had worked for the 26 years) We had everything we had worked for tied up in an estate & it became more complicated with 4 of his brothers. Next thing I knew was we were out of employement. I found another job which I love, but my Ex didn't recoop. To top it all off, my "happy" homelife came to an end when I found out that my ex had been miserable for the last 5 years & seeing my ex-sister-in-law. Then I lost 2 of my oldest friends.... So what if I felt like a "Lifetime Movie"...I went through the divorce & thought, "OK, I can finally get on with my life", but he then filed Chapter 13 with no wages showing? I decided enough was enough due to the fact the only things I asked for & was agreed to in the divorce was for him to pay the 2001 taxes (they were his) and pay the 2 personal loans (2 very dear friends/family members had come to our rescue when we needed the money) and $5000.00 to me (of which my divorce attorney was attaching the remainer of his fee) The judge & my Ex agreed that "liens" would be filed on his share of the estate to cover these 3 things. His filing would wipe these out.
I have a court date later this month to argue my case against his hiding assets etc...but in the meantime the taxes are coming to me & he is letting our home go back. (that really broke my heart & if he hadn't put up a fight to keep it, I could have) And now, even though I have been paying the debt I had, with the two looking for me, it is forcing me into bankruptcy. I don't like it, I fought it for over a year now, but I am ready to throw in the towel. Being proud wasn't getting me anywhere esp when each month I was having to fight with my car insurance climbing due to the credit rating. And to think that just a little under years ago, it was top notch!
Anyway, that's my story, not that anyone cares. If the worse habit I have is smoking, I can reajust that figure but at the moment it seems to be the biggest stress reliver I am enjoying.
I have read back many of the posts on this site & you were the most thoughtful & kind & honest in your replies. You didn't judge or make snappy comebacks. I can't speak for everyone who has posted here, but thank you for being civil.

 

[Ladynred]

You're quite welcome and I certainly hope you can get thru this and get on with your life. The grandchildren will still be there for you to enjoy and w/o the burden of debts hanging over your head it'll be much more enjoyable

Those personal loans... you can always pay your dear friends back after your discharge. There is nothing to prevent you from paying back a debt voluntarily.

If those IRS taxes are his and not yours, I would certainly look into the 'injured spouse' filing. If it applies, you may not have to pay those taxes at all. I'll have to go look it up and see how that works.

Hopefully you can find a good bankruptcy attorney to get you thru this.

We all have our stories.. for most of us who find ourselves looking bankruptcy in the face, its not a story of voluntary shopaholic-ism.. its life kicking you in the butt while you're already down. Get this behind you and move on.

 

[dcw888]

I was planning on paying those two off, if it's the last thing I do. They were there without a question of doubt & have stood by through out all of this without complaint.
I did check the IRS site out to see about the injured spouse & plan on looking into it more. If you find any thing, please let me know...
In the meantime, I will go to court on his filing later this month & want to be totally prepared.
Then will seperate my checking from my roommates (we did this to cut expenses as her divorce was as sloppy and sad as mine).
I plan on cutting out the cell bill and going to a cheaper rated plan later this month, needless to say, it seems that my daytime useage was up during all of this & it is usually way down due to the fact I work midnights & sleep during the day.
My medical concerns have been put on hold during all of this due to the fact I wanted & did pay my my bills as best as I could. Was there anything else you see that I might have missed or forgot? What total scares me to death is to think about having to go it on my own with just the basic living expenses like rent, food etc. At this moment, there would be no way possible.
I have always been one to see a glass half full & fight everyday to continue to see it that way. I figure there are far worse situations I could be in & am grateful that I am so lucky to just have my old (9) year old PC to look information up...
Thank you again!