Legal Question in Bankruptcy in California

Afraid to file

In '98 I applied for 2 "pre-approved" credit cards, and limit increases on existing cards, saying I had income from a home-based business. I have been disabled since '92, and had hoped to make money from home, but it never got off the ground. By '99, I was no longer able to make payments on the cards. I'd like to file bankruptcy because one card is threatening legal action, but I must list my income on the bankruptcy forms & it's not close to what I estimated to the credit card companies (I told some of the cards that the income was just an estimate, others, I didn't). Can I get in trouble? I honestly thought I could make the money & pay the cards. Debt now $50,000 (credit card debt accumulating since '94). No house, no valuable assets. Thanks for your help.


Asked on 9/01/99, 5:20 am

3 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Afraid to file

Filing a bankruptcy will not cause you the type of problem you are worried about. if a bankruptcy is appropriate for your situation do not be afraid to file. I have bankruptcy clients in simular situations. Dont worry.

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Answered on 9/02/99, 4:51 pm
Mark Markus Law Office of Mark J. Markus

Re: Afraid to file

Well, false statements on your credit card applications CAN lead the creditor to object to your discharge, but in most cases it is not a problem and can be dealt with. However, your situation should be analyzed by a qualified professional. If you would like a free consultation, please visit my web page and give me a call.

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Answered on 9/02/99, 4:57 pm
Marcus G. Tiggs Slate and Leoni, A Professional Corp

Re: Afraid to file

False statements and or representations as to your income can be used as ammunition by creditors to file a complaint in your bankruptcy case to determine the dischargeability of the debt in a Chapter 7 bankruptcy. A chapter 13 not a problem.

The problem can be compounded if you have recently loaded up (used) your credit cards for cash advances, etc.

Best of Luck, I am a Certified Bankruptcy Law Specialist, State Bar of California.

We offer free telephone and face-to-face consultations. 213-625-0161

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Answered on 9/03/99, 1:29 am


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