Contemplating Bankruptcy

[model38]

What is the name of your state?Florida
My husband and I are currently separated. I will be filing for a divorce soon. I am contemplating filing for a chapter 7 bankruptcy. I am currently buying a home. Both cars we have are in my name. My husband currently has possession of the Chevy Trailblazer. He supposedly agreed to make the payments on the truck and I make the payments on the Altima. Well, I am current on my car note and the finance company for the truck keeps calling me about the payment. I think it is 1 month behind right now. My husband left me with credit card bills that are months behind, house note and a car note. My question is: Can I file bankruptcy and include the Trailblazer that he is driving and is currently in my name...even if he catches up the payments and they are not behind. Once we are divorce, I do not want him owning anything that is in my name. I know that in the divorce decree I can stipulate that we either sell it or have it refinanced in his name...but his credit is too bad. I want to have the car repossessed and include it in the bankruptcy...can I do that? Thanks

[mymymy]

Floridas' auto exemption is a measley 1000.00 for a single filer. If you own both of those cars on paper, then they are yours and you must list them as assets. Do you understand the exemption law? The 1000.00 is the equity in your vehicles.. value minus loan= equity. You are only allowed to exempt one vehicle, if filing individually. If you are upside down on the loans, then it's a different story.

How much do you owe on each vehicle and what is the Kelly Blue Book Value on each? Warning: I'm in the Southern District of Florida and I know for a fact that the trustees here use the NADA value- which is MUCH higher than KBB.

I'm sure some of experts will be along soon to help with the implications of your impending divorce.. I wonder which would be more beneficial, to divorce first or to BK? Divorces take some time, don't they? Maybe a LEGAL seperation would be in order if time is a concern. (new BK laws kick in October 17, 2005)

[Ladynred]

The problems with bankruptcy and divorce is that the bankruptcy can be held up until the marital property division is ironed out. Since you haven't filed for divorce yet, you'd be better off waiting until AFTER your bankruptcy. Sounds like one vehicle is going to be forfeit anyway if the titles are in your name - and there's not a damn thing HE can do about it except to pay the Trustee to keep it. Doesn't sound like he could do that -good-bye to 1 car.

You must include ALL debts, so if your name is on the loan for the Trailblazer, it will be on your schedules.


FL has a 100% homestead exemption, the house is safe. Personal property exemption in FL is a lousy $1000 and the Trustees DO send out appraisers to value your stuff.

Just be aware that divorce decrees mean NOTHING to creditors, if your name is on an account, you are liable for it no matter what - except for bankruptcy. Anything in both names will wind up being his and his alone to pay once you get thru a bankruptcy.