I have a failed business and am looking to bankrupcy to receive discharge from SBA personal guarantees and from personal credit card debt used in the business. My husband’s income puts us over the median in our state, I have already been advised by a lawyer that for this reason I will have to file Chp. 13 (I’m filing alone without my husband but still have to count his income.) Problem is, my husband says he will absolutely not pay his income toward my business debts (he’s upset I went so far into debt for the business) no matter what he has to do to protect himself. I have no idea how far he plans to go to protect himself, but, I know he has already taken steps in this regard by opening a separate checking account and changing his direct deposit. He told me he wanted to set-up a household budget and this was a cash management tool, to only put the money we have budgeted to live on each month in the joint account.
Right now I’m living in fear, my phone rings at least 50 times day by bill collectors. I want to resolve this situation. But, I’m afraid to discuss this with my husband because I fear he will file for separation or divorce. He acts like everything is fine as long as we don’t talk about financial matters. I guess he figures I’m just taking care of the problem without involving him. I began having severe anxiety and panic attacks when by business started to decline, that condition is worsening with the financial & marital worries and I’ve actually been hospitalized recently for a mental breakdown. I know if he files for legal separation or divorce he would be, basically, protected from being responsible for my debts or my bankruptcy filing. While that certainly would help me out by allowing me to file Chp. 7 without a problem. My fear is losing my marriage over my debts. I’m afraid that discussing the marital status at all in relation to my debt solutions will just cause us to start heading down that path and what if we never come back.
I’ve heard that in some cases where a spouse refuses to provide support for another spouse, i.e. that he won’t give me money toward paying my debts, that an affidavit can be signed or submitted to the court to this effect. Have you heard of this. What happens if I file Chp. 13, then I can’t pay because he won’t give me the money. If he’s not part of the filing, can the court or trustee garnish his income? Will it just convert to a Chp. 7 because I didn’t pay? Could it be dismissed altogether with no discharge? I don’t want to waste money filing if I’m going to end up right back where I started. It seems to me that I should be able to convince to court to just start at a Chp 7 due to the marital conflict and fact that my husband won’t support my chp. 13 payment plan. I can’t beleive that bankruptcy laws are drafted in such a way that they would force someone to get a divorce or separation in order to file.
Any suggestions would greatly help!
Actually what we are dealing with here are a couple of overlapping different situations. I understand your desire to go bankrupt but what is most puzzling is your husbands head in the sand position. While he elects to gleefully ignore your situation and the suffering it is causing you, that is not constructive on his part.
So let’s separate your marriage situation from your debt situation. On the debt side of the equation there appears to be few options other than bankruptcy to allow you to remedy the current situation in your current financial state and income status.
On the marriage side of things, I think you need to ask yourself if this is the person that you want to continue to be married to. It does not sound like he is supporting you in the “for better, for worse” pledge. I can tell you that if I abandoned my wife in her hour of peril that would not be a loving action at all.
Is he willing to go to a marriage counselor to discuss the issues that are creating a wedge between you? If so, that would be a good place to go to begin to openly discuss the underlying relationship issues that are making this much harder than it needs to be.
It sounds like you have already consulted with one bankruptcy attorney about your situation. But a second opinion would be in order for you as well. Find another local bankruptcy attorney and go in and review the means test. You need to make sure that income that is used to service secured debt is not included as available in the calculations.
In a perfect world you’d be able to get your husband to go to marriage counseling at the same time you are seeking a second opinion for the bankruptcy situation.
The bottom line might just be this is a deal breaker for him and he’s just not willing to continue to be your partner in marriage as a result of your business problems. If so, maybe this situation has helped you to clearly see the man he is.
A final option is always to legally separate and then go bankrupt afterwards to help you get a fresh start. There is nothing saying that you can reconcile latter and get back together.
I called a bankruptcy buddy and ran this situation past him as well and we both agree, ultimately this is not primarily a debt problem, this is a marriage problem first and foremost.
Almost forgot, I have not heard of any free pass affidavit that can be submitted to the court to eliminate his income in this situation.
Here is an exceptionally big hug just for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.