Bankruptcy during AOS

[sunnybear 0]

Ok so I kind of put myself up poop creek with credit cards past year or two...add on my UK hubbys loan overseas in his name and student loans that are going to come into re-payment in the next year and we are pretty screwed....I met with bankruptcy attorney today and my option is pretty much file chapter 13...what I am wondering is this going to come into play at all during our AOS process.....we have to file for AOS by mid to late January and then I pretty much need to file chapter 13 within next few months as well.....anyone else done this?! Any help advice appreciated....

[katej0203 1]

I shouldn't think this would effect your AOS so long as you have a joint sponsor... at least this is what i am hoping!

[melusine 5]

Oh my.....

Make sure what bankruptcy means (i don't know if it's the same as in Canada but in Canada it basically means 10 years denied on anything, all loans, credit, mortgage etc).

For AOS you will need a co-sponsor for sure (10 years of responsibility, it's a lot)

Good luck and make sure to work your numbers before going to that extreme.

[ELW 5]

I shouldn't think this would effect your AOS so long as you have a joint sponsor... at least this is what i am hoping!

That's what I think too, because they are basically only interested in whether you have sufficient income to support him.

However I have no personal experience... hopefully someone out there in a similar situation may have more experience & advice. Best of luck!

[Eric-Pris 1,602]

I read recently that new stricter bankruptcy laws were signed into law last year that prevent bankruptcy filing where the applicants overspent and forced themselves into bankruptcy. You can file for bankruptcy, but there is no guarantee your case will be granted and your debt forgiven.

[alexpapa 4]

I read recently that new stricter bankruptcy laws were signed into law last year that prevent bankruptcy filing where the applicants overspent and forced themselves into bankruptcy. You can file for bankruptcy, but there is no guarantee your case will be granted and your debt forgiven.

Chapter 13 does not involve forgiving debt, it gives you the ability to set up payment plans for all of your debts with the benefit of not losing house to foreclosure - it's not the same as chapter 7 which is more of a liquidation.