single spouse bankruptcy
How does Bankruptcy affect your seperated spouse?
If i am seperated and my husband files for bankruptcy how does this affect me? We had a car loan together in joint names and thats been repossed, if there is a shortfall on that will they chase me and what will they take? Being that im a single mother now will they take anything from me? i dont own a house and the only thing of value is my car which is owned outright but only valued at around 5k. Will his name get wiped from the debt and the amount owing be entirely mine?
If he files then you will be on the bankruptcy with him since you both had the car together. Now the bankruptcy laws have changed and you must pay back all debt owed. So even if the car was repo it still has to be paid off. In other words. Lets say you bought the car for $10,000. You paid off $3,000. The fianace company repos it and resales it for 2,500 There’s still a balance owed on the car of $4,500. It still has to be paid off by you and your husband. So if he files bankruptcy then the difference will be part of the settlement and you too will have to pay the difference. But since you are separted if it ‘s a legal separtration then you maybe able to keep your name off the bankruptcy papers. If nothing else find out what is still owed on the car…if there is an amount owed. You can asked the finance company and they will have to tell you since your name was on it as well. What ever the amount is pay half of it to him. Keep all records.Or you can subtract the amount from your child support until your half of the car is paid back. You can ask for this in your divorced paper/separtation papers. Your lawyer can write it up this way. Don’t let anyone tell you different. If this is the only thing you two have your names on together and there are no other joint accounts then this will keep you off the bankruptcy papers he files. He can tell his lawyer when his filing that you have to stay off the filing. He will need a court order such as the divorce papers or separtation papers to show you will be taken less on child support until you’ve paid half of the car back. If you don’t want to go through all this then see if you can get a small loan for the difference then pay your half. But you must make sure that this will keep you off the bankruptcy papers he files. Your going to have some type of proof that you paid half the car and your NOT going to sign any papers for bankruptcy if your name will be on them…period… He can’t make you and nither can the court. He will not be able to file bankruptcy if you don’t sign. He will just have to deal with it himself. You got the ball in your court so don’t loose it. They won’t take anything from you since the car is the only thing that your saying you both had a joint account . They can take the house from him if they decide to. He can file chapter 13 and he could keep the house as long as he makes the payments…on time. They will set a payment amount for him to pay the courts each month and it will be taken from his check before he get’s paid. If the amount is wrong that is taken out and he isn’t making the right payments they can dismiss the case and repo the house and anyhting else they choose. I wouldn’t sign unless there is written proof your name will not be on the papers he files. Why should you have to take the fall for just a car?! Unless your going to be living in the house you both were living in. You might not be able to stay in the house long. In divorces usually the court will make him sell the house and you would get half the profit. Even if you didn’t have your name on the payment you would still be entitled to half. But if his letting you ..so call…keep the house then he could be just trying to hurt you. You would be forced to move out and he would have to sell the house and pay the court as much as possible with the profit. Depends on how much he owes to bankruptcy and what he can get for the house. You really need to speak to a lawyer cause you made still be able to get a share of the house if he sells it and he would have to forfiet his half to the court. You can pay your half of the car out of that and it can be wrote up in your papers that you have paid him for the car. And therefore keep you off his bankruptcy.
