It is not unusual for a failing relationship to be saved from divorce
once the couple obtains the protection and relief of a fresh start
in bankruptcy.
| 50. Jim and Sally have been married for
three years and have joint debts. Can they file together at the same
prices? |
|
Yes. While friends, lovers, or parents,
or children cannot file a joint petition, married people can, at no
additional expense whatsoever. If you are no longer married, a cost
saving joint petition is NOT possible. |
|
| 51. Mary has good credit, no bills, and
is not responsible for any of Bill's, her husband, debts. Should she
file with Bill? |
|
No. |
|
| 52. Mary and Bill own together a home worth
$500,000 and they only owe $25,000. Only Bill will be filing because
Bill and Mary have no joint debts. Will they lose the house because
the equity is too much? |
|
No. Bill and Mary own the home together
(called tenants by the entireties). This form of ownership may only
be called upon by a creditor of BOTH Bill and Mary, which Bill's trustee
is not. So they may keep their house as long as they continue making
payments. |
|
| 53. It now appears that Mary guaranteed
one of Bill's debts. What will happen to the house? |
|
If the joint creditor or the trustee is
alert, Mary will be forced to pay the account or Bill will have to
reaffirm the account or lose the house. If she files bankruptcy, the
house will be lost to the trustee to administer if this debt is not
dealt with.. |
|
| 54. If only Bill files and there are other
jointly owned assets, such as cars, checking accounts, stocks, etc.,
but no joint debts, will they keep these assets too? |
|
Yes, the protection for jointly held property
includes ALL types of property. The trustee may ask for a credit report
for the non-filing spouse to establish that there are no joint debts. |
|
| 55. Should I list my ex-wife/husband as
a possible creditor? |
|
Almost always. |
First Meeting Of Creditors >
