Legal Question in Family Law in Massachusetts
Chapter7 & Divorce
I am about to begin the divorce process and am also considering the possability of filing Chapter 7. Currently we have and large CC debt and a Car lease, the CC under both of our names (i am the primary account holder) and the lease is strictly under me.
We own a home and have roughly $30k in equity. My plan originally was to buy my wife out of the house and use the joint CC debt as a majority of the buyout. However do i lose this option if i file bankruptcy before the divorce, and will i than still be responsible for the $15k? Or would it be better to wait until after the divorce to proceed with Chapter 7?
The leased car is currently registered to my wife, however i pay the loan 100%. Would i need to get the car through the divorce proceedings if i decide to wait to file until after the divorce? The other option is can i transfer the car lease to my wife if she wants to keep the car, and would that transfer incur a termination charge, regardless if the car is staying in the family?
1 Answer from Attorneys
Re: Chapter7 & Divorce
If the credit card debt was run-up jointly for family needs, it would not be at least half her obligation.
You can't file chapter 7 as you own a home, so you will file chapter 13 and that means some if not all of the debt will have to be repaid. If your wife is on the credit card, that may actually complicate your settlement.
I would talk to both your divorce attorney and a bankruptcy attorney before doing anything.
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