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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 07-21-2016, 06:10 PM
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Unhappy Lots of home equity…but is bankruptcy my only option?

I am still in the process of a long drawn out, high conflict, unresolved divorce...going on 3+ years.
A 5 day Trial was set for May 2016 but has been adjourned to December 2016.
I recently attempted resolution through a third party (Fairway Divorce) The Ex agreed and made it to the first 2 appointments then decided/demanded I pay the full amount (we originally agreed to each pay half) and if I didn’t she wouldn’t continue. That was my last attempt to resolve issues before trial.
With reduced hours and rate in the oil and gas industry I am struggling to pay all expenses (including spousal and child support from a 2013 court order). I have had to use my personal line of credit and credit cards to make ends meet and pay the support payments. I am now tapped out with the joint lines of credits, legal fees, credit cards, personal lines of credit, loans I am not eligible for anymore credit. I highly doubt I will make it finically to the end of summer never mind to December.
Since the ex is unwilling to sell the matrimonial property (which she agreed to in 2014) and move on, filing for bankruptcy seem to be my only option which would force the sale of house. Sadly the equity in the house would pay off all debt but then I’m left rebuilding my credit for the next few years.
Is there any other way to force the sale of the house or a way to try and survive till Trial…? I did put in a court order to force the sale of the home at the beginning of the year but the judge said wait till trial (In May)...
Any suggestions? Thanks....
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Old 07-21-2016, 07:50 PM
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Are you living in the home? Perhaps you could rent some rooms out. If you're not living in the home I would suggest moving back in ASAP.
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Old 07-21-2016, 09:43 PM
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Sounds like you are already considering bankruptcy/consumer proposal, your ex might be hoping to get paid out for the house and stuff, maybe someone told her that you may have to pay big bux if your going to have to pay for a 5 day trial, your ex might be waiting you out for the offer.

Selling the home can be a lengthy process if she wants it to be depending on the circumstances. You might want to look into your other options and backup plans asap.
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Old 07-21-2016, 10:57 PM
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Quote:
With reduced hours and rate in the oil and gas industry I am struggling to pay all expenses (including spousal and child support from a 2013 court order).
Did you file a motion to change based on this?


Quote:
Since the ex is unwilling to sell the matrimonial property (which she agreed to in 2014) and move on, filing for bankruptcy seem to be my only option which would force the sale of house. Sadly the equity in the house would pay off all debt but then I’m left rebuilding my credit for the next few years
.

Don't do this, this is stupid. What you want to do strategically is the following.

Take as much as debt as possible from the marriage and give your ex-wife the house with all the equity (including the joint debts you took on) AGAINST a reduced spousal support obligation as much as possible. Everything needs to be ACTUALLY transferred with the creditors etc...

6 months later, you claim bankruptcy.
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Old 08-02-2016, 02:14 PM
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Thanks fro the responses...That does sound like a decent plan....if I can hold out that long financially.
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Old 08-02-2016, 03:00 PM
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Is there any other way other than Bankruptcy or a court order to force the sale of the MM home? I did attempt it in court but the judge said what till trial...
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Old 08-02-2016, 06:14 PM
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If your financially doomed without the sale of the home soon, or forced to foreclose because your missing payments due to child support living expenses etc...you might be able to try and privately get a decent offer on the home to sell it before you miss too many mortgage payments, take that offer to court for sale of the home, talk to a lawyer about that.

There are options other than bankruptcy, bankruptcy is quick but painful. There is consumer proposals, if your home does have to go into foreclosure you can talk to a trustee and arrange a monthly payment to pay off all your debts, its complicated but they figure out what your house might sell for and add that or subtract it from all other debts and you pay approx half the debts back over 5 yrs. consumer proposal will free you from debtors, but the home could still pay out or indebt the other owner though. Best to sell that house!

In your case, you are wanting to fast track the sale of the home, talk to a lawyer and tell him/her that is all you want help with for now. If your ex is dead set on refusing to sell the home right now the post links put up sounds good to me. Best to get an offer and ask the ex to agree half/half. I am sure if the ex gets wind of you having to hand it over to the bank she will quickly agree to something, unless she is playing some sort of payout game until trial.

How bankruptcy, foreclosure, or consumer proposal affects you during the divorce trial is another thing, you might want to ask a lawyer if you have to pay your ex her share of the potential equity of the home after claiming bankruptcy etc... That would suck to think your free and clear, then find out you owe her money for the home if the judge thinks you did it to screw her....be careful, I like what links said in his post....maybe try your best to sell immediately then go his route in a safe way.
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Old 08-10-2016, 12:37 AM
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Thank you for your thoughts...they were all helpful...
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Old 08-10-2016, 12:58 AM
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Generally any ORDERs for division of property are dischargeable BUT if you MAKE a settlement for property division and then claim bankruptcy it would be considerd that you made the agreement in bad faith
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Old 08-10-2016, 06:42 AM
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Flip the mortgage to a line of credit. Then you only have to pay the interest not the principle. It will drop payments substantially.
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