Legal Question in Bankruptcy in Maryland

How soon can I file bankruptcy?

I just purchased a home last month w/boyfriend, who decided to leave me soon after settling on the home. I have 4 credit cards, w/him as an authorized user only, which I have removed him. The balances are to the limits. He helped me pay for everything, now he is not. I'm already late on one of them and I know I can't pay them along with the mortgage, utilities and necessaties for our 8 month old. I figured that I will have to file bankruptcy down the road, after this gets too bad. My question is how soon can I start the bankruptcy procedure? How late do I have to be? I'm only a month late at this point. Someone told me that your monthly debts that you include on your petition have to exceed your monthly income, is this true? What if I don't want to include everything, such as my mortgage which would definately make my debts exceed my income. I know I'm not going to be able to pay these bills by my self and I'm not expecting him to come back and offer help. Thanks.


Asked on 5/19/04, 4:15 pm

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: How soon can I file bankruptcy?

Well, if it's his kid, he should be paying child support. That's probably where you should start. On the other issues, you can file at any time. Your mortgage has to be "included," but if you stay current you keep the house. If your monthly payments are less than your DISPOSABLE income (income after taxes and living expenses), filing might be deemed bad faith, but there is no fixed standard.

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Answered on 5/19/04, 5:22 pm
Carolyn Gilden Krohn Law Offices of Carolyn Gilden Krohn

Re: How soon can I file bankruptcy?

Lots of questions, I'll try to reply to most of them. First, sorry to hear about your boyfriend. Second . . . the timing of the bankruptcy (if you need to file one) is important. If you just bought your home and have very little equity in it, you may be able to file a Chapter 7 and have no worries about losing the house. However, if you have had a lot of recent credit card usage (i.e. balance transfers, cash advances, large purchases) that might impinge on your ability to file right away. You must be current on your mortgage if you are going to file a Chapter 7, which is the chapter where you are unable to pay back any of your debt. If your expenses do NOT exceed your income, and you have money available every month and you have a significant amount of equity in your home, then a Chapter 13 would be appropriate for you. In that case, you wouldn't have to file right away. I'm certain that if you have an eight-month-old at home and you are supporting your child by yourself, your expenses probably exceed your income. If not, then Chapter 13 is always availble to you. In either event, you must list all of your income and all of your expenses.

If your boyfriend's name is on the home that could be a complicating factor. If you want to discuss, give me a call or email me.

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Answered on 5/19/04, 5:25 pm


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