Legal Question in Bankruptcy in California

bankrupsy laws

hello mom is 81 yrs old and has lived in her house for 34 yrs...dad passed a yr ago but before he left he remodeled and pulled out alot of his equity to his house, now mom being on soc sec..and a small vet pension is struggling to pay credit cards for remodel and house loan which he put her in an arm..can she file bankrupsy and keep the house? that is my question..and can this also stop her from having to pay those credit cards they come to about 13,000 and house balance keeps going up so its 580,000..thank you..


Asked on 2/24/08, 10:24 am

2 Answers from Attorneys
Charles Shamash Caceres & Shamash, LLP

Re: bankrupsy laws

the answer is "probably" Unfortunately your questions lead to others. Specifically regarding the value of the house. Finally in keeping the house she will have to continue servicing the debt so refinancing may also be a route. Happy to assist with all aspects.

Good Luck

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Answered on 2/24/08, 10:31 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: bankrupsy laws

Assuming that your mom qualifies for a Chapter 7 bankruptcy, she should be able to get rid of the credit card debt. However, the bankrutpcy will not defeat the lien the lender has on the house. She won't be able to keep the house if she cannot make the payments. She should seriously consider refinancing or selling the house.

If there is substantial equity beyond the amount of her allowed homestead exemtpion, a Chapter 7 trustee might force the sale of the house anyway. Your mom needs to sit down with a local bankruptcy attorney and explore all of her options.

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Answered on 2/24/08, 1:18 pm


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