Advice Requested

Question:
I would like some advice from all of you, if you don't mind. I have about 12,000 in credit card debt (Sears and Citibank Visa), and about 2500 in medical bills, currently. By December, I will probably accumulate another 7,000 in medical bills. All of these bills are in my name only, although I am married. I can make arrangements for payments on the medical bills, but Sears and Citibank want it all, and they want it immediately. Our income isn't enough to pay all of this off, since I only get a pension of 9,000 a year, with 2000 going toward my health insurance. (The credit card bills are from before my medical disability retirement, and from paying off previous medical bills.) We have a house, deeded in both of our names, although the mortgage is just in my husband's name. We also own three vehicles (99, 97, and 91), all of which are paid off. Since these debts are in my name only, I'm considering filing for a personal bankruptcy. If I do this, it will be after December. This is really the only way I can figure out to take care of these debts. THis being the case, I think I should file a quitclaim deed to remove my name from the property deed, as well as apply for new titles in my husband's name. Would this be a good way to prepare for the possible bankruptcy? Should I put our 16 year old son's name on the titles? Is there anything else I could do now to improve the changes of a successful bankruptcy? I wish I didn't have to do this, but my health prevents me from working. I'd much rather be healthy and able to work.

Answer:
I strongly recommend speaking with a bankruptcy attorney *before* transferring property or doing anything else in this regard. Bankruptcy planning is a ticklish issue that should only be done with the assistance of an experienced bankruptcy attorney. I have written a Bankruptcy FAQ which should answer many of your questions about what is involved--it may be found at http://users.erols.com/lawyer/FAQ/br_faq.htm. I strongly recommend speaking with a local bankruptcy attorney. Most offer free initial consultations and he or she should be able to review your specific situation and let you know what you can and can't do. If you're in Maryland, DC or Virginia, please let me know--we may be able to help.





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