There are rules in place since changes to the law in 2005 that will affect whether or not you can file chapter 7. But the fact that you are current on bills does not impact your ability to file some form of bankruptcy. More information is needed.
You don't say why it is that the foreclosure process is taking "too long". If you are filing a bankruptcy anyway, it is generally - but not always - better to dispose of the investment property first. A short sale is almost always worth pursuing, but there are exceptions to that as well. The solution that works best for you requires a more in-depth factual review. You definitely need the assistance of a lawyer to let you know all of the potential consequences.
Your question raises a lot of issues, and I will try to address only a few of them briefly. First, if your wife is not obligated for the debt from which you need relief, then there is probably no need for her to file bankruptcy. It wasn't clear from your question whether or not you understood this. Second, with regard to Massachusetts homesteads, the exemption is up to $500,000, subject to certain limitations under section 522 of the bankruptcy code. Unless one of those limitations apply,...
It's not clear why or how you are giving your sister money and in financial distress. Anyway, your bankruptcy will not affect her own home ownership, but there are other issues if you are giving her a gift before filing bankruptcy. You should seek the assistance of a competent bankruptcy lawyer to give you complete information about this situation so that a bankruptcy filing for you does not become more problem than remedy.
The unfortunate part of this is that you will need to defend yourself in one form or another. There are different methods of fighting jurisdiction, but the safest way is to hire someone here in Massachusetts to deal with it. So, while you could wait for them to chase you in Florida, that is not generally the recommended course of action. Please feel free to contact my office, as we do handle a large number of matters such as this.
You need to hire a lawyer for assisting you. I don't know that any responsible lawyer would attempt to answer your question with specifics, since most questions on this site are general in nature, and not relating to issues such as this. From your statements, it sounds as though you have enough knowledge to hurt yourself, so you should get professional advise quickly.
Just because you file bankruptcy does not mean that you have to lose your house. In fact, in many situations, and especially one such as described by you is where bankruptcy makes it easier for you to keep your house by allowing you to get rid of all of your unsecured obligations which are dragging you down. The first piece of information that any bankruptcy lawyer will need from you is the current value of your house (to be determined by a real estate professional) and the amount of your...
There are a lot of facts that need to be known to fully answetr your question. I would need to know: (1) are you the only owner of the property, (2) do you already have a homestead declaration, (3) what is the value of the property and the amount of any senior mortgages, and (4) did you own the property at the time that the lien went on? Chances are you will be fine after going through a bankruptcy and will likely be able to get rid of the lien, but you should seek counsel to assist you.
Let's start the answer that by saying that any attorney who advises you to take one course of action or another wothout reviewing your docunents and the entire suituation is making a mistake. Sometimes waiting to file bankruptcy (or not filing at all) is the correct answer, and sometimes it makes no difference. Your concerns about tax liabilities are well taken, but a careful review may even let you know that there is no concern at all about taxes from debt forgiveness.
I'm sorry if this...
The question that you have asked has insufficient information. The law changed in 2006 such that chapter 7 and chapter 13 cases treat property division obligations differently. Also, any property that you have already received is possibly at risk, but generally not likely. You would need to contact an attorney and provide more details in order toget a complete answer.