QUESTION
My wife and I are considering chapter 7. She is receiving SSI and can’t work. I am working. Should we file separately?
Asked on Feb 28th, 2021 on Bankruptcy - North Carolina
More details to this question:
We have accumulated unsecured debt from medical bills and credit cards separately. We are paying a mortgage on our manufactured home it’s in her name. I am making a car payment in my name. She only has income from SSI monthly of $1,633.00 deposited into her bank and nothing else deposited in her account. I work 40 hours a week at only one job and make $11.05 hourly and it’s deposited into my bank and my wife does have access to it. I’m 54 and not old enough to retire. We no longer have a savings account and no real assets of value and only 2 cars one paid for but not worth $900.00 we can no longer pay these debts but don’t want to lose our only home and cars. The unsecured debts are roughly around $40,000. Do we qualify for chapter 7 and does my wife have to file or is she insolvent? Thanks for any advice given. Signed Exhausted in Lexington NC.
1 ANSWER
4 Awards
You qualify for Chapter 7 based upon the income you stated, and you should consider filing bankruptcy jointly if both of you have debts you can no longer afford to pay. In addition, if only one of you files bankruptcy, there is a possibility the emdical providers will continue to pursue the other spouse because in NC you are liable for medical debt incurred by your spouse if that was for "medical necessaries". The specifics depend upon whose name the cars are in and a few other factors. It's also a way to save money, because the court costs are the same whether ine spouse files alone or both spouses file together. You should have a personal consultation with a qualified consumer bankruptcy attorney because it is impossible to give completely accurate information on an online message board. An attorney will be able to make sure there would be no issues. Many offer free consultations.
Answered on Mar 01st, 2021 at 6:41 AM
This is general legal advice only. You do not have an attorney-client relationship with Attorney Lynn E. Coleman without a signed retainer agreement and payment of any applicable fees.