Santa Monica, CA asked in Bankruptcy for California

Q: I have some bad financial problems, I think. I am considering bankruptcy.

I have managed to get about 6 credit accounts back to a good, current status, but have about 7 getting worse everyday. Including two loans. They probably total about $25000 at the moment, and I am making about $700 a week and am not sure I can save everything. My credit has gone down to 500 and seems to be getting worse with more and more late/chargeoff reporting. Should I just stick it out and try to pay everything I can, or try bankruptcy and just keep the cc accounts i have in good standing? Can someone guide me in the right direction and even help me with the bankruptcy if that is what i need to do?

Related Topics:
6 Lawyer Answers
Bahram Madaen
Bahram Madaen
Answered
  • Bankruptcy Lawyer
  • Anaheim, CA
  • Licensed in California

A: Sometimes, I advise my client to file bankruptcy since there is no other option. if you believe that there is no change in your situation, then bankruptcy is the right way to go. A chapter 7 bankruptcy will cost less than $1500 and will wipe all of your unsecured debts. Let me know if you need help. Thank you very much.

Harlene Miller
Harlene Miller
Answered
  • Bankruptcy Lawyer
  • Irvine, CA
  • Licensed in California

A: I suggest you meet with an experienced bankruptcy attorney in your area to fully analyze your options regarding bankruptcy versus not filing bankruptcy. Understand that when filing bankruptcy you must include all debt you have, which means that the new cards, if balances are due, must be included. Also, even if there is no debt on the cards at the time you file, there is no guarantee that they will survive the bankruptcy case. Also, you mention nothing about assets - which is an important factor when considering a bankruptcy. There is much to consider - and this site can only provide you initial consideration and issues. A face to face with a bankruptcy attorney is the next step for you to take. Good luck.

Aaron Michael Lloyd
Aaron Michael Lloyd
Answered
  • Bankruptcy Lawyer
  • Los Angeles, CA
  • Licensed in California

A: If you are drowning in debt and you have 7 credit accounts getting worse everyday then I would suggest looking into your bankruptcy options. Bankruptcy wipes out most debt and a lot of times bankruptcy allows the person to keep everything they own. Life after bankruptcy is possible and many people establish good credit within a year after filing. I recommend you consult with a bankruptcy attorney asap as I think it may be a good move for you.

Theodore Allan Greene
Theodore Allan Greene
Answered
  • Bankruptcy Lawyer
  • Sacramento, CA
  • Licensed in California

A: You should sit down with a bankruptcy attorney and go over your situation in detail. You cannot only keep the "cc accounts" in good standing. You must list ALL your debt and cannot favor one creditor over another. There are some pre-filing options you can consider doing that may help you - but you must sit down with someone experienced who can help craft a plan specifically for you and your unique situation.

Peter Maurice Lively
Peter Maurice Lively
Answered
  • Bankruptcy Lawyer
  • Culver City, CA
  • Licensed in California

A: It is impossible to determine whether you are eligible for a chapter 7 discharge and whether that is your best option, based only upon the information that you provided in your question.

If you are married and your spouse is employed, both of your incomes must be used, together with other factors, to determine your eligibility for debt relief. If you have valuable assets, have transferred real or personal property, or have repaid loans to family members, then chapter 7 might not be your best option right now.

Many attorneys offer free consultations over the telephone and in their offices. You should consult with an experienced bankruptcy attorney regarding your options in light of a thorough review of all of your facts and circumstances

Aaron Michael Lloyd
Aaron Michael Lloyd
Answered
  • Bankruptcy Lawyer
  • Los Angeles, CA
  • Licensed in California

A: I think bankruptcy could provide you with some great relief. If your credit score is already around 500, filing bankruptcy will not do much more to it. Some people's credit scores actually go up within days of filing. Bankruptcy would erase your credit card debt and most of any other debt you may have.

I am not sure the total amount of debt you have but you mention you are wondering if you should stick it out on a $700/week income. You can probably save more money by filing bankruptcy and wiping out your debt. If you have been struggling and are struggling now and if you do not know how you can save money then I would seriously consider scheduling an office appointment with a bankruptcy lawyer. Bankruptcy can provide you more relief than you may realize. It can get you a second chance.

I hope this answer was helpful.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.