About Robert Vitt Expertise I am able to answer general questions regarding Chapter 7 and Chapter 13 bankruptcy cases. I have particular experience in personal (i.e., non-business) bankruptcies. I am unable to answer any questions pertaining to Chapter 11 bankruptcies.
Experience www.bankruptcy-ie.com
I am admitted to practice in the Central District of California and currently run my own law firm which specializes in bankruptcy.
Organizations San Bernardino County Bar Association, California State Bar
Education/Credentials Bachelor of Arts, Philosophy
Master of Business Administration
Juris Doctor
Master of Arts, Philosophy
Past/Present Clients I have had a variety of clients throughout my career. However, my immediate past clients have been predominantly individuals filing for debt discharge under Chapter 7.
Question I am seriously considering bankruptcy to discard my unsecured debt only. I am married and although the debt is joint the cards are in my name only. An attorney told me if I sell my home all the proceeds will be applied to my credit card debt anyway, what's the point of declaring chapter 7? (she said I was definitely a candidate) my husband wouldn't be affected since only I am declaring. She also told me to declare divorce first (also considering) prior to bankruptcy. Why must I declare divorce first, and is there anyway to salvage any monies if I sell my home, is there a 'time limit' can the money still be split between my husband and myself?
Answer Ruth,
It is difficult to give you a clear answer on everything you asked because I do not have a clear picture on all the details. Sometimes, the details add up.
Probably what that attorney told you was that if you declared Chapter 7, then your home had so much equity that it would not be exempt from the bankruptcy estate and the Trustee would end up selling it.
As to why you would divorce first...there could be a couple of reasons. First, it could assist in determining who is liable for what debt. If some of the debt is assigned to one spouse over the other, then it may be better for one spouse to take on more of the debt in bankruptcy.
A secondary consideration is that I have heard of bankruptcy courts undoing various state court judgments because there is a conscious effort to hinder creditors rights.
