My Husband Wants to File Chapter 7 Bankruptcy and Thinks I Should File Chapter 13. – Cathy

“Dear Steve,

Husband’s employer closed. He is now receiving Social Security and unemployment. I work a full-time and part-time job and have a little pension check. Our credit card debit is no longer manageable. My husband wants to file chapter 7. He thinks I should file chapter 13. I co-own some property and have $20,000 left in my 401K.

If my husband files chapter 7, the credit cards that I am on with him will come after me. I really do not want to sell my share of the property that I have with my mother, brother and sister. How can I get out from under this debt. We want to keep our house. We have filed for a upside down mortgage with CitiBank.


Dear Cathy,

Wow, thank you so much for sending the numbers along.

That is certainly a substantial amount of debt.

I have some additional questions for you on the debt.

  1. Is the Bank of America line of credit secured by the house?
  2. How much is your house currently worth and how much is due on the first mortgage? It’s a bit confusing since you list two amounts due Citi Mortgage.
  3. Does you want to keep the car in his name?
  4. Tell me a bit more about that other property.

With a little clarity we can get to the bottom of this.

Please post your responses and follow-up messages to me on this in the comments section below.


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1 thought on “My Husband Wants to File Chapter 7 Bankruptcy and Thinks I Should File Chapter 13. – Cathy”

  1. Hi Steve,
       Sorry to be so long in getting back to you.  I work two jobs. 
    Q.1 The line of credits are not tied to the house.  Personal signature loans.
    Q.2 Current value of house is $ 170,000.  Owe $240,000 on and first and second mortgage.
    Q.3 He can protect the car in his Chapter 7.  Okay to leave in his name.
    Q.4 I am a third owner of a 1/4 acre vacant lot in a coastal village in south Georgia.
           I am a fourth owner of a 1/4 acre lot with a house valued at $120,000 in the same coastal village.  I am a third owner of a 100 acre farm with old house and pine trees.
    Thank you,


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