Divorce after Bankruptcy

[gordon1]

What is the name of your state? illinois
My wife and I going to get divorced. We both filed Chapter 13 a few years ago. I make the payments out of my check. We have our house and car under the Chapter 13 plan. I want the House and she wants the car. Can they split the Chapter 13 in half? What happens to the plan if not?

 

[LdiJ]

What is the name of your state? illinois
My wife and I going to get divorced. We both filed Chapter 13 a few years ago. I make the payments out of my check. We have our house and car under the Chapter 13 plan. I want the House and she wants the car. Can they split the Chapter 13 in half? What happens to the plan if not?

Divorced or not, the two of you are equally liable for the chapter 13 payments. The court can order the two of you to share the payment half and half, but cannot separate it into two separate chapter 13 obligations.

Also, if the house is deeded in both names, and the mortgage is in both names, that's going to be a little more complicated than a standard divorce. Normally its required that the spouse keeping the home refinance it into their own name, and that the spouse not keeping the house give a quit claim deed to the other.

Obviously that is not going to be possible while you are under chapter 13, and may not be possible for several years after you get out of chapter 13. You should consult with a local attorney, but it may be wiser to sell the house.

 

[gordon1]

Does this matter?

I owned the house before we were married so technically everything is in my name, and she was never added to anything. I am not sure but i though that when you get married automatically half of it is hers.

However the car that she wants is in her name. I am not sure if any of this matters. We are trying to get this resolved and then get divorced as soon as possible. We are not arguing about anything so hopefully this dosn't go bad.

 

[LdiJ]

I owned the house before we were married so technically everything is in my name, and she was never added to anything. I am not sure but i though that when you get married automatically half of it is hers.

However the car that she wants is in her name. I am not sure if any of this matters. We are trying to get this resolved and then get divorced as soon as possible. We are not arguing about anything so hopefully this dosn't go bad.

Ok...that makes things less complicated that the assets you are keeping are already in your own names. However, she would be entitled to 1/2 of the equity that accrued during the marriage...so that is an issue unless the equity in the car would be the same.