Should I file or not???

[kdowd771]

What is the name of your state? Texas

Ok here is the fiasco. I have been married 8 years this July. Have been seperated since July 01. Filed for divorce in Jan 02. Should have all been settled and finalized on 12 Sep 02. But my (EX)wife in her endless desire to drag this out dropped $50 for a jury trial. Since then I have been trying to get this mediated and settled to avoid a jury trial. I have been paying basically $1800 per month since she dropped this jury fee and delayed everything. She lives in the house I pay $1234 on, she gets the rent on the house I pay $400 on and she drives the car I pay $225 on. It has been like this since Sep last year. In addition to the $8,000 in lawyer bill so far and $150,000 in mortgages I have $40,000 in credit card debt. After yesterdays failure in mediation, she wants a check for $20,000 that I do not have and can't get.

I have been advised to file for bankruptcy by my lawyer. Only problem is this will bring the divorce to a screeching halt!! Which I don't want. I have an excellant credit score of 827. But its worthless when you are in debt up to your eyeballs!! I have not been late on anything and am current on it all.
I don't want to file for bankruptcy because I feel I am responsible for this debt. Even though $27,000 of it is hers directly.
Should I do it? Am I being riduculous thinking I could pay this back? I am in the USAF and make about $3100 per month take home. Not awesome but decent. What are the short term and long term effects of bankruptcy???

 

[Ladynred]

My God.. fiasco is right !!

I would suggest that you read the info on bankruptcy here:

http://www.thebankruptcysite.com

There's great info there on the whole process from making the decision to recovering afterwards.

If you file for bankruptcy, your wife will find herself once again solely liable for that 27K in debt as well as any joint debts you file on ! Since TX is a community property state, they can even go after her for YOUR debts.

That 20K check she wants would also likely be eliminated. Sounds like she's out to ruin you.. but if you go BK, that will jump back and bite her, big time.

TX has an unlimited homestead exemption, but for a primary residence only. If you want to keep the rental property you're probably looking at a Ch 13, you'd probably end up losing it with a Ch 7.

Bankruptcy is going to tank that 827 score, sadly, but as you say, when you're up to your eyeballs, what good is it ?

Your best bet is to get a free consultation or two with a bankruptcy lawyer and find out what your best path would be if you decide to do it. Actually, if you file for BK, the BK would probably be delayed until the property division of your divorce was settled .. so its a doulbe-edged sword.

 

[kdowd771]

I have my meeting with a BK lawyer on the 7th of May. My only reservation with doing this now is that it will STOP the divorce dead in its tracks. Right now if I were to pursue the divorce we proceed along for a jury trial. Possibly in June. But the bad part is I might get hit with some debt that is NOT dischargeable. Soin one sense its good the divorce is done but I could still be indebt up to my eyeballs and file BK and STILL be stuck with huge debt I can't pay but am orderd to pay by the judge.
If I do BK now I stop the divorce for 6 months I am told. Is this true?? I guess each case is different. So once the BK is done then the divorce can proceed. She will most likely file for bankruptcy also. She has $45K in credit card in her name only for what its worth.
I suppose even though it will delay everything in the long run its worth it.

Ok so I do this and I stop paying on my bills immediatley. No I have a large amount of cash each month. Should I hide it? Can they claim it in the bank account? Do I have to prove what I did with it? or where it went??
Too many questions to ask here!!!