Irvine, CA asked in Bankruptcy for California

Q: I got served for BofA credit card $24980 debt. I call lawyer who sue me and willing to settle for $14k. Take the deal?

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6 Lawyer Answers
Yelena Gurevich
Yelena Gurevich
Answered
  • Bankruptcy Lawyer
  • Studio City, CA
  • Licensed in California

A: only you can answer that question. a lawyer cannot tell you whether or not to take the deal, especially a lawyer you have not hired and doesn't know the facts. so you have to make a decision of what to do. depending on your financial situation, you may qualify for a bankruptcy and wipe out the entire debt but that requires a consultation with a bankruptcy attorney.

Harlene Miller , Tristan Brown and Timothy Denison agree with this answer

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

A: I agree with my colleague. It is important to consider your entire financial situation. Are there other debts that you have that may lead to another lawsuit? Also, there are important issues to address when reaching a settlement with a creditor depending on whether you are offering a lump sum payment, or will be making payments; making sure you get a settlement agreement in writing; understanding the possible effect of forgiveness of 50% of the debt. I don't know when you were served with the lawsuit, but there is a deadline to file an answer that you need to monitor during your attempt to settle. I urge you to contact an attorney for a consultation that can specifically address these issues.

Timothy Denison agrees with this answer

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

A: Most lawyers will tell you not to file bankruptcy unless you have over $10,000 in debt (assuming you qualify for a chapter 7)... but it is a very personal decision and everyone has reasons why maybe they shouldn't file. You should sit down with an experienced BK attorney and have them look at your whole situation. As far as BofA's offer.. that isn't a bad deal at 50% reduction. Will they let you make payments or do you have to pay it all at once. Also don't forget that the amount they forgive is taxable to you as income tax unless you are insolvent - which is another reason to have an attorney review all of your information so you will know all your options and the consequences...

Timothy Denison agrees with this answer

Aaron Michael Lloyd
Aaron Michael Lloyd
PREMIUM
Answered
  • Bankruptcy Lawyer
  • San Bernardino, CA
  • Licensed in California

A: You should consider all your options including the option of filing bankruptcy. Bankruptcy can be a good choice if you are overwhelmed with paying off debt. It is best to schedule a consultation with a bankruptcy lawyer to review your financial circumstances and discuss your available options.

Timothy Denison agrees with this answer

Colby LaVelle
Colby LaVelle
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Oakland, CA
  • Licensed in California

A: The offer you state from the lawyer suing you is lower than the offers I typically see...which makes me wonder why the attorney is offering you such a relatively good deal. Once a lawsuit is filed, these debt collectors don't usually make such "generous" offers. I urge you to call an attorney for a consultation. You can discuss your overall finances and see if paying off this debt makes sense or whether it might make more sense to file BK. If you have other creditors and limited resources, you should really consider all your options before writing a check for $14k. If you file bankruptcy you can very likely include a civil collections lawsuit and the lawsuit and debt can be discharged under your bankruptcy filing.

Timothy Denison agrees with this answer

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: I agree with everyone. Evaluate offer in light of your financial situation.

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