Divorce and Bankruptcy

[Asryela]

What isWhat is the name of your state (only U.S. law)? Arizona
I am going through a separation with an impending divorce from my wife and at the same time I am filing bankruptcy. Is it true that I cannot keep the house we currently hold a mortgage on if her and the kids are living there and at the same time rent an apt for myself to live in. I really need to know, because we would like to keep the house for them, but I do need someplace to live and want to make sure that I can secure a rental for myself. The bankruptcy has not yet been filed.
the name of your state (only U.S. law)?

 

[mistoffolees]

What isWhat is the name of your state (only U.S. law)? Arizona
I am going through a separation with an impending divorce from my wife and at the same time I am filing bankruptcy. Is it true that I cannot keep the house we currently hold a mortgage on if her and the kids are living there and at the same time rent an apt for myself to live in. I really need to know, because we would like to keep the house for them, but I do need someplace to live and want to make sure that I can secure a rental for myself. The bankruptcy has not yet been filed.
the name of your state (only U.S. law)?

Can she afford to keep the house on her own?

 

[Asryela]

No, she cannot afford to keep the house on her own; however, the mortgage payments are current and we're asking to be allowed to keep the house. I've agreed to pay half of the mortgage even after the divorce as well as child support so that she can afford to keep the house. If it helps, we are filing Ch.7, she is on the bankruptcy as well as the mortgage.

 

[LdiJ]

No, she cannot afford to keep the house on her own; however, the mortgage payments are current and we're asking to be allowed to keep the house. I've agreed to pay half of the mortgage even after the divorce as well as child support so that she can afford to keep the house. If it helps, we are filing Ch.7, she is on the bankruptcy as well as the mortgage.

Talk to both your bankruptcy attorney and your divorce attorney about the house. There is probably a way to structure your 1/2 of the payments to ensure that it is best in both the divorce and the bankruptcy.

If you both reaffirm the house you should be allowed to keep it, assuming that the bankruptcy trustee believes that you can afford both it and rent for you. However, stucturing things a certain way in the divorce, may force the bankruptcy trustee to accept your "budget". IE, if there is a valid basis for alimony/spousal support, it might be better to characterize the 1/2 of the mortgage payments as alimony/spousal support. I am not saying that I advise you to do that, I am only mentioning it as a possible example of coordinating things between the divorce and the bankruptcy.