I was a homemaker for 27 years. Now divorcing, my only asset is my home, owned jointly but my spouse has agreed to give it to me in the settlement. I am currently unemployed. We have an estimated 50, 000 in equity. The defaulted cards are in my name. I have someone willing to pay off the mortgage in full, about 65, 000. Do I have ANY hope of keeping it? Bankruptcy would take it, right? I defaulted on the cards probably in late 2010. Three of the cards have high balances, the others, a few hundred. Is there any hope for me?
You should consult with a bankruptcy attorney in Georgia as soon as possible. In many cases, bankruptcy allows you to keep your home without paying the credit cards.
Divorce / Separation Lawyer
You need to see a lawyer, yesterday! Georgia will allow you to protect slightly under half that equity. So if you get divorced first, get all the house, and then pay off the mortgage, yes you would probably lose the home in bankruptcy and be a great target for the credit card lenders.
It may be, with a different order, such as waiting on the divorce and bankrupting first (depending on the details), you may have a better outcome. Don't wait. You need legal counsel now.
The details may also generate other suggestions for you. But the steps you outline are probably exactly the wrong ones.
If you need a consultation at my office, call me at 404-768-3509.
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Chapter 7 Bankruptcy Attorney
Your situation requires you to sit with an attorney to discuss what is going on and the best course of action for you. The timing of filing the divorce and the bankruptcy will also impact how much equity there is in the home and what the effect of a bankruptcy attorney would be. If the house is currently in both names, then your portion of the equity in the home would be in the $25,000 range, and there's a good chance that the equity could be fully protected in a Chapter 7. If your goal is to get a job, then you would need to be concerned about the debt that you owe, since non payment will lead to lawsuits, which could lead to judgments and eventually garnishment of your wages. You should not make any decisions, pay off the mortgage, etc. without first consulting with a bankruptcy attorney. I am happy to speak to you.