Coping with Bi-Polar WAW

[CountingCrows]

Met with bankruptcy lawyer today for initial consult. Didn't get very encouraging news. Seems that even though I'm just a contractor and don't have any security in my job, I still make too much money. I'm right at the edge of the bubble for mean income for a family of 3 in my state.

Sadly, it would work to my advantage if W and I were legally separated and there was a court-ordered payment required of me like child support or alimony (although my state doesn't really have alimony). Just can't come up with enough "reasonable expenses" that would prevent me from paying 15% of my total unsecured debt. Of course, they don't care how much SECURED debt that I'm currently paying and will continue to pay...which is why I'm in such a bind.

Also, interestingly, another way for me to make it under the line for Chapter 7 would be for W to move back home and NOT work. That's part of what got us in this mess in the first place, and I don't see that really being an option, unless she could get a job that paid her "under the table".

I'm more than a little embarrassed and ashamed of myself. Although I normally have handled my money pretty well in the past, I've really had my head stuck in the sand regarding finances (mostly credit cards and medical bills) since the bomb dropped earlier this year. Now, I'm going to have to go begging to our creditors to attempt some type of settlement/payment arrangement that I can live with. Of course, this will leave ME with the responsibility for all of W's debts too.

It could still work to my advantage to a certain extent, should W and I choose to D. This is an equal property state, so all debt as well as assets get split 50/50. I could possibly get her to agreed to leave my house, furniture, appliances and full-custody of S7 alone in trade for me taking full responsibility for the outstanding debt accrued in both of our names. Don't know if she would be accepting to a proposal like that (particularly the custody part). I know that she isn't in any position to pay the debt, so it may give me some leverage. Would almost feel like paying her to just GO AWAY.