Can I file bankruptcy for shared debts during a divorce? – Answered by Lawyer James Wingfield in Worcester, MA on September 22, 2011 - LawQA.com

Can I file bankruptcy for shared debts during a divorce? – Answered by Lawyer James Wingfield in Worcester, MA on September 22, 2011 - LawQA.com

My husband and I are getting ready to file for divorce. We have 40,000 in credit card debt. Some in his name with me as an authorized user. Some in my name. He lost his job a year ago and is on unemployment. We now have $11,000 in hospital bills from him but the insurance is in my name. If we divorce can I file bankruptcy on all to get all debt wiped out, or does he have to file also?

You can file for Bankruptcy either before or after your divorce is finalized. I would not, however, recommend filing alone if you are in the process of a divorce. If you must file now, it is best for you and your husband to file together (it will leave you both with one less thing -- debt-- to fight over in the divorce). If you must file alone, you should wait to file until after the divorce is finalized just be certain your separation agreement / divorce judgment, specifies that you each are responsible for your own debts, and not for any of each others debts. Your bankruptcy will wipe out YOUR liability under the joint debts, but not your husbands debts. If you file separately, he will still be liable for the debts.

Even if you decide to wait, it is useful for you to have a bankruptcy attorney involved at an early date. I often like to review divorce agreements (particularly for the language surrounding division of assets, debts and payment from one party to the other) so that I can best protect my clients when we eventually file a bankruptcy case. To schedule a free consultation with an experienced bankruptcy attorney, call the Law Offices of James Wingfield today at 508-797-0200 or visit the contact page on our website.

How do I file for bankruptcy? – Answered by Lawyer James Wingfield in Worcester, MA on September 28, 2011 - LawQA.com

How do I file for bankruptcy?

Answered by Lawyer James Wingfield in Worcester, MA on September 28, 2011

How do I file for bankruptcy? – Answered by Lawyer James Wingfield in Worcester, MA on September 28, 2011 - LawQA.com

I'm losing my credit score because of late pays. My husband has been laid off for 2 years. There is no more savings left only a $50,000 a year income. Should I file for bankruptcy and if so, what are the first steps?

Based on your description it sounds like you should at least be considering bankruptcy. In Massachusetts, any household with an annual income of only $50,000.00 will qualify for a Chapter 7 case (based on the median income in Massachusetts as determined under the Means Test). Even so a Chapter 13 may be in your best interest if you have certain specific real estate situations. You should begin by finding a qualified bankruptcy attorney that you can trust. It is important to give your attorney all the necessary documents so that he or she may properly evaluate your situation. These documents include, but are not necessarily limited to, your credit reports, your federal tax returns (with all schedules, worksheets and supporting documents) for the past two tax years, your past six months of pay stubs, your past six months of bank statements, all collection letters, any statements regarding investment or retirement accounts, an appraisal or brokers price opinion for any real estate you have and a Kelly Blue Book report for any vehicles you own. Your attorney may want more information and other specific documents depending upon your situation. The sooner you pull these documents together the quicker you can get your case filed, so there is no time like the present to start pulling together the documents. To schedule a free consultation with a experienced bankruptcy attorney, call the Law Offices of James Wingfield at 508-797-0200 or visit the contact page on our website today.

What happens to my savings in Bankruptcy?

The question of what happens to your savings or other assets in a bankruptcy is dependent upon your individual circumstances.  If you are considering a Chapter 7 bankruptcy (liquidation), then there is a chance that some of your assets, including the money in your savings account will become property of the bankruptcy estate (“taken by the Chapter 7 trustee”) and distributed to creditors.  However, individuals filing for protection under the bankruptcy code are able to take advantage of certain legal “exemptions” which prevent certain property, up to a certain value, from becoming part of the bankruptcy estate. In Massachusetts, we are lucky enough to be allowed to choose from two different “menus” of exemptions: those provided under the Bankruptcy Code (the “Federal Exemptions”) and those provided under non-bankruptcy law (primarily state law, the “Massachusetts Exemptions”).  Your attorney can help  you to understand which set of exemptions will best protect your assets, but without knowing what the full picture of assets (all your money and your “stuff”) it is impossible to determine whether you are in danger of losing your savings in a bankruptcy. 

The best way to determine whether you run the risk of losing your savings or other possessions in a bankruptcy is to consult with a qualified bankruptcy attorney.  To schedule a no-cost, no-obligation consultation, call the Law Offices of James Wingfield at 508-797-0200, or visit the contact page of our website today.