Bankruptcy? I lost my job at the beginning of 2018. Then 3 weeks later my wife lost hers.
Both of us have excellent Fico scores.
We have the satisfaction of mortgage/deed where we reside. One 2006 vehicle with 93,000 miles that we have the title for and another vehicle that we paid $34,000 in 2013 with only 40,000 miles. We owe about $7,000 on it.
Overall we owe $50,000 in credit debt and already consolidated that into monthly payments of $700. Obviously neither of us can find jobs and we can not make payments or even pay a a utility bill.
Although our credit scores are great we can not get a loan because of our debt to income ratio. We are drowning and I’m being threatened with divorce ect... please what can we do?
With zero income, you likely qualify for Chapter 7 bankruptcy. You'd be best advised to set up a free initial consultation with a qualified bankruptcy attorney. You appear to have non-exempt assets, which you may lose in a Chapter 7 bankruptcy. Discharge of debts is not free. You contribute your non-exempt assets to the case so your Trustee can liquidate same to pay something to your creditors. Depending upon how assets are held, and the amount of joint debt, the attorney may suggest strategies to minimize the assets you will lose. Have you applied for unemployment? Depending upon your age, you may qualify for Social Security. Let your spouse know that divorce rarely makes one rich. Remember the vows "richer and poorer..."
Posting questions anonymously and receiving general answers do not substitute for consulting with an attorney licensed to practice in the jurisdiction in which you live. Answers posted here by Kevin C Gleason are only intended for general education of the public on legal matters. Please consult a qualified professional before deciding what to do about your situation.
Based upon your facts, you are definitely candidates for a Chapter 7 but, as advised, the trustee will want you to give up your non-exempt assets. Unfortunately filing Chapter 7 bankruptcy is one of the few events when having a paid off vehicle does not help you. If either vehicle is worth $8,000 or more, the trustee will probably either want you to pay the value of that vehicle that exceeds $8,000 or want to take and sell the vehicle. You only have $1,000 per vehicle exemption in Florida. Additionally, you only have $1,000 exemption each toward personal property because you would be claiming a homestead exemption for your house. Consult with a bankruptcy attorney to discuss how a bankruptcy will affect all your assets.
This response is for general informational purposes only and is not intended to create an attorney-client relationship nor to be relied upon as definitive legal advice with regard to your issue. It is impossible to provide precise advice tailored to your specific situation without a comprehensive information-gathering consult. This attorney cannot stress enough how much easier and cheaper it is for you to prevent a legal problem by consulting with an attorney initially than it is to fix a problem afterwards. Please post your follow-up questions in the comments to your question so that others may benefit.
I agree with my colleagues call an experienced bankruptcy attorney in your area today. Most offer a free initial consultation and can advise you on the best course of action. I wish you the best of luck.
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Yes, it would appear that currently you are good candidates. However, you may need to either give up the paid off car or make Ch. 13 payments for the equity. I would go speak with a few attorneys. Most of us give free consultations.
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