short sale, divorce, bankruptcy

[Sw3tflower]

What is the name of your state Calif
I don't know where to post this.
I filed for divorce in Aug 2008 after 28 years of marriage. We have owned our home for 28 years. I am a stay at home mom.
The court ordered our house to be sold. We just got an offer and have sent in the application for a short sale approval.
My husband also owns his own business (a corp) and a building (as an LLC). He is behind on the LLC taxes and the bank has been contacting him. He told his partner he is going to file for bankruptcy.
It is a very bitter, abusive divorce. He has told me he plans on screwing me over and I want to know how to protect myself.
Should I hold off on the sale of the house until he files for bankruptcy or let the house go through short sale and then let my husband file for bankruptcy? Should I force the bankruptcy issue before the divorce is final or wait till after?
Would foreclosure and bankruptcy be better?
He spent ALL my retirement funds, the Pension Profit Sharing Funds, college funds, stopped my health insurance. I have no income except for the court ordered temporary support.
Should I post this in the divorce or bankruptcy section?

[LdiJ]

Originally Posted by Sw3tflower

What is the name of your state Calif
I don't know where to post this.
I filed for divorce in Aug 2008 after 28 years of marriage. We have owned our home for 28 years. I am a stay at home mom.
The court ordered our house to be sold. We just got an offer and have sent in the application for a short sale approval.
My husband also owns his own business (a corp) and a building (as an LLC). He is behind on the LLC taxes and the bank has been contacting him. He told his partner he is going to file for bankruptcy.
It is a very bitter, abusive divorce. He has told me he plans on screwing me over and I want to know how to protect myself.
Should I hold off on the sale of the house until he files for bankruptcy or let the house go through short sale and then let my husband file for bankruptcy? Should I force the bankruptcy issue before the divorce is final or wait till after?
Would foreclosure and bankruptcy be better?
He spent ALL my retirement funds, the Pension Profit Sharing Funds, college funds, stopped my health insurance. I have no income except for the court ordered temporary support.
Should I post this in the divorce or bankruptcy section?

You NEED an attorney. Your situation is far beyond advice from an internet message forum.

[Sw3tflower]

I have an attorney. She has been great...right up till we hired to get an appraisal of his business and his LLC. I am sure it was not good.
I have called her. Since I have not recieved any answer, I thought I better find out what I could on my own.
I understand and can't blame her since she does not know if she will get paid for her time.....but I am in a situation where I can't turn back and need help now.

[nextwife]

Originally Posted by Sw3tflower

What is the name of your state Calif
I don't know where to post this.
I filed for divorce in Aug 2008 after 28 years of marriage. We have owned our home for 28 years. I am a stay at home mom.
The court ordered our house to be sold. We just got an offer and have sent in the application for a short sale approval.
My husband also owns his own business (a corp) and a building (as an LLC). He is behind on the LLC taxes and the bank has been contacting him. He told his partner he is going to file for bankruptcy.
It is a very bitter, abusive divorce. He has told me he plans on screwing me over and I want to know how to protect myself.
Should I hold off on the sale of the house until he files for bankruptcy or let the house go through short sale and then let my husband file for bankruptcy? Should I force the bankruptcy issue before the divorce is final or wait till after?
Would foreclosure and bankruptcy be better?
He spent ALL my retirement funds, the Pension Profit Sharing Funds, college funds, stopped my health insurance. I have no income except for the court ordered temporary support.
Should I post this in the divorce or bankruptcy section?

Sounds like you have negative equity in the house, and the business is tanking. I sure hope you are looking for a job, because it does not sound as though there will be assets to split and that he has NOT really been earning enough to rely on one income, at least not the last few years. Did you and he tap into home equity to pay off previous bills?

As for the short sale, as one who reviews and works them out for a bank, I CAN tell you that the bank may insist on BOTH borrowers participating in at least a partial payback plan for the deficiency. Banks look askance at voluntarilly incurring a charge down when at least one borrower is voluntarilly unemployed and doing nothing to contribute toward coming up with a means to bring some cash to the table to make the deal work.

[Sw3tflower]

I had a two day Vocational Evaulation done which was ordered by all parties envolved.
The evaluator said I was not able to work at this time due to physical medical problems. These problems are not curable but certainly can be helped with proper medical attention.
My husband cancelled my health insurance last year and I have not been able to get it back.
I am not out for a handout and I can think of nothing worse then to have a life of being lazy and sitting around. Keeping active and busy is healthy....I am unable to work at the moment. That's not my choice.
He indeed 'tapped' into the home equity to pay for his LLC. I cannot touch that money.
In the meantime, I am trying to find out what will in my best interest in regards to the house sale, bankruptcy and the divorce.

[LdiJ]

Originally Posted by Sw3tflower

I had a two day Vocational Evaulation done which was ordered by all parties envolved.
The evaluator said I was not able to work at this time due to physical medical problems. These problems are not curable but certainly can be helped with proper medical attention.
My husband cancelled my health insurance last year and I have not been able to get it back.
I am not out for a handout and I can think of nothing worse then to have a life of being lazy and sitting around. Keeping active and busy is healthy....I am unable to work at the moment. That's not my choice.
He indeed 'tapped' into the home equity to pay for his LLC. I cannot touch that money.
In the meantime, I am trying to find out what will in my best interest in regards to the house sale, bankruptcy and the divorce.

You have been married 28 years, have medical problems and are unable to work at this time, and there are no marital assets to split because the LLC has gobbled them up.

You need to be pushing for alimony and pushing for it prior to the bankruptcy, so that alimony for you can be factored into the bankruptcy plan. You also need to be prepared to file for bankruptcy as well, because unless your name is not included on any of the debt, the whole debt will fall to you if he files for bankruptcy and you do not.

[nextwife]

Originally Posted by LdiJ

You have been married 28 years, have medical problems and are unable to work at this time, and there are no marital assets to split because the LLC has gobbled them up.

You need to be pushing for alimony and pushing for it prior to the bankruptcy, so that alimony for you can be factored into the bankruptcy plan. You also need to be prepared to file for bankruptcy as well, because unless your name is not included on any of the debt, the whole debt will fall to you if he files for bankruptcy and you do not.

And if the bank is calling, the LLC is probably failing. And has been for some time. Money was thrown at the LLC in an attempt to save it, perhaps? There may be little income on his side of the ledger as well. If he's 50 something, he may never earn what he used to, so they both may need to expect lifestyle changes. Expecting a failing business to be her sole means of support may not be realistic.

Poster, if you are legitimately disabled, have you filed for SSDI?

[LdiJ]

Originally Posted by nextwife

And if the bank is calling, the LLC is probably failing. And has been for some time. Money was thrown at the LLC in an attempt to save it, perhaps? There may be little income on his side of the ledger as well. If he's 50 something, he may never earn what he used to, so they both may need to expect lifestyle changes. Expecting a failing business to be her sole means of support may not be realistic.

Poster, if you are legitimately disabled, have you filed for SSDI?

Still...getting the alimony into an order prior to the bankrupcty allows that to be considered. If he is filing a Chapter 13 it could be critical. If he is filing a Chapter 7 its less critical. It could also make a difference between the Trustee accepting a 7 vs a 13.

[nextwife]

Originally Posted by LdiJ

Still...getting the alimony into an order prior to the bankrupcty allows that to be considered. If he is filing a Chapter 13 it could be critical. If he is filing a Chapter 7 its less critical. It could also make a difference between the Trustee accepting a 7 vs a 13.

If he has negative income, she may not be able to get an alimony order.

[LdiJ]

Originally Posted by nextwife

If he has negative income, she may not be able to get an alimony order.

If he has negative income outside of debt servicing and depreciation, amortization and other non cash expenses, you could be correct. Otherwise, you may not be correct.

We simply do not have enough information to know the answer to that question.

However, what we do know is that he is ablebodied, and she is not.

[Sw3tflower]

No, I have not applied for SSDI or SSI.
I didn't even know I could.
I have lived all my life in a middle-middle upper class lifestyle. I have no knowledge of how or where to get help financially except through working.
Because I have no insurance, I have no doctor....except for emergencies when I have gone to the ER. I would think only people who have currant doctor's reports to help prove a disability would be able to apply for aid. My husband supported me (and he did not believe in wasting money on doctors). As long as I did not have to work, my husband felt my physical problems did not need treatment.
Now I have to work and am unable to.
Yes, I was stupid, but I am at least trying to do something about it now.

[LdiJ]

Originally Posted by Sw3tflower

No, I have not applied for SSDI or SSI.
I didn't even know I could.
I have lived all my life in a middle-middle upper class lifestyle. I have no knowledge of how or where to get help financially except through working.
Because I have no insurance, I have no doctor....except for emergencies when I have gone to the ER. I would think only people who have currant doctor's reports to help prove a disability would be able to apply for aid. My husband supported me (and he did not believe in wasting money on doctors). As long as I did not have to work, my husband felt my physical problems did not need treatment.
Now I have to work and am unable to.
Yes, I was stupid, but I am at least trying to do something about it now.

You can have a regular doctor and have regular doctor visits without having insurance...and that is a whole lot cheaper than the ER. In fact, your previous doctor probably still has you on his/her patient list. You just have to pay as you go.

[Bali Hai]

Originally Posted by Sw3tflower

What is the name of your state Calif
I don't know where to post this.
I filed for divorce in Aug 2008 after 28 years of marriage. We have owned our home for 28 years. I am a stay at home mom.
The court ordered our house to be sold. We just got an offer and have sent in the application for a short sale approval.
My husband also owns his own business (a corp) and a building (as an LLC). He is behind on the LLC taxes and the bank has been contacting him. He told his partner he is going to file for bankruptcy.
It is a very bitter, abusive divorce. He has told me he plans on screwing me over and I want to know how to protect myself.
Should I hold off on the sale of the house until he files for bankruptcy or let the house go through short sale and then let my husband file for bankruptcy? Should I force the bankruptcy issue before the divorce is final or wait till after?
Would foreclosure and bankruptcy be better?
He spent ALL my retirement funds, the Pension Profit Sharing Funds, college funds, stopped my health insurance. I have no income except for the court ordered temporary support.
Should I post this in the divorce or bankruptcy section?

On top of ALL of your other problems you bail and file for divorce. Smart move. What is your next plan to screw up your life and someone else's??

There should be laws in place barring people in your situation from even filing for divorce. But since there isn't laws in place for this, you should try to get food stamps, welfare and any other public assistance to help mitigate your destructive behavior.

[mistoffolees]

Originally Posted by Sw3tflower

What is the name of your state Calif
I don't know where to post this.
I filed for divorce in Aug 2008 after 28 years of marriage. We have owned our home for 28 years. I am a stay at home mom.

He spent ALL my retirement funds, the Pension Profit Sharing Funds, college funds, stopped my health insurance. I have no income except for the court ordered temporary support.

I posted a response a while ago, but it didn't show up for some reason...

If he canceled your health insurance AFTER you filed for divorce, he may be in violation of a court order. Most courts have default orders at the time of filing and one of them may prevent him from canceling any insurance. If so, he could be liable for your medical expenses.

Read the paperwork that came with the divorce filing. There should be a section limiting what either party can do with marital assets; see if it says anything about insurance.

Of course, even if he is liable, actually collecting anything might be a problem, but you'll certainly be better off if his debt to you is listed in the bankruptcy filing.

[Sw3tflower]

Originally Posted by Bali Hai

On top of ALL of your other problems you bail and file for divorce. Smart move. What is your next plan to screw up your life and someone else's??

There should be laws in place barring people in your situation from even filing for divorce. But since there isn't laws in place for this, you should try to get food stamps, welfare and any other public assistance to help mitigate your destructive behavior.

There should be laws preventing a person from entering into marriage when they intend to abuse the marital vows and innocent people are hurt.

Might I suggest along with blood tests, people applying for a marriage license also be required to take an MMPI. The results be made available to both people. Knowing what is in store for them might prevent many people from making a mistake and marrying someone whose intent is not "to love, honor and cherish from this day forward....."