Ohio Bankruptcy Question
Date: Fri, 01/11/2008 - 05:32
Okay, I have a mess on my hands! First of all, I have been separated from my spouse for over 2 years and have done everything within my power to get a disillusionment, but she will not follow through on it. She approached me with an alternative that she would be willing to sign a disillusionment if I would agree to file Bankruptcy with her before filing for divorce. She has loans that are not being paid through Cash Call, numerous payday loans, tons of credit cards, over 40 medical bills. My credit is not great, a credit score of 528, but all my debts are current with no past dues, these include credit cards, student loan, mortgage, and a auto loan. I am having a hard time seeing where it would be a benefit to me to agree to file Bankruptcy with her, does anyone see an advantage. She claims that she cannot file Bankruptcy on her own because were married, is this true? My spouse makes nearly 60K a year and is under the belief that if she files Bankruptcy that all her debts will be erased, is this true?
If she makes that much odds are she would have to file Chapter 1
If she makes that much odds are she would have to file Chapter 13, in which she would have to repay a large percentage of the debt. To file for a chapter 7, she would have to fall below the median income for your state. The debts would not be erased, she would still have to pay about 60% to 80% of it.
Normal Chapter 13 repayment plans are 3 to 5 years, I believe.
Normal Chapter 13 repayment plans are 3 to 5 years, I believe. I could be wrong though. I know more about chapter 7 then 13.