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Bankruptcy Law/Divorce and bankruptcy

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Expert: - 1/5/2011


Question
I am in the process of getting divorced. My future ex has already filed and had her debt discharged. The main asset of course is our house with 2 mortgages. We would be short about $40k if we were to sell the home. Right now we are $10k behind n the primary and the second has not had a payment made since March of '09. I have $15k in the bank and another $13k coming in the divorce if we settle as agreed. She obviously can't refinance the mortgage. Should I file BK to protect myself from the lender coming after me for the second mortgage? I have no other debt that would be dischargable in BK!!

Answer

Leon Bayer
There can be many reasons why someone in your situation should not file bankruptcy. One prominent issue is whether there are any assets you might lose, ($15k and $13k). There is always another issue concerning your income and passing somethig called the "means test."

While you have raised a very valid question, there simply is not enough information here for an answer. There is no way I can figure out what is going on in a situation like this without reviewing your records and having an in person meeting. I'm sorry, but your question is not the kind of issue that can be answered via email. You should consult with a local bankruptcy lawyer right away for guidance.

If you want to read up on this before you see a lawyer, you can get a generized sense of the issues by reading my Bankruptcy Guide at http://www.debt-relief-bankruptcy.com/guide-new.asp

The good news I can give you is that there are lots of very good, experienced bankruptcy attorneys that will give you a free consultation. You should be able to obtain expert guidance without spending any money.  

Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.


Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

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