Legal Question in Bankruptcy in California

I cannot afford payments on my house as my earnings are very low/non existant.

1.The company which I own, which was my source of income has lost money last year and all of current Year.

2. I owe 23900.00 to bank throuh my corporation.

3. I owe $32000 in credit card debts.

4. I owe 298,000 on my house which is worth 215,000

Need advise as to what my course of action will be.


Asked on 11/22/09, 6:45 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

You might try negotiating with the bank for a forebearance for a few months if you anticipate turning the company around or getting another source of income, or renegotiating your loan if there's a way to make a monthly mortgage payment. Otherwise, you might have to give up the house and relocate.

If you personally guaranteed the corporation's loan, a bankruptcy could relieve you personally of the obligation. A bankruptcy would most likely wipe out your credit card debts depending on several factors.

Feel free to contact me during the weekend if you're interested in pursuing a bankruptcy.

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Answered on 11/27/09, 8:43 pm


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