Legal Question in Bankruptcy in California

Bankruptcy....

I have about $16,500 in credit card debts. If one of the credit card companies sue and obtain a judgement against me to garnish my wages can I declare bankruptcy to avoid paying?? What chapter should I go for? I have more credit card debt than I can afford to pay without just making monthly payments. What is the statue of limitations from making a last payment to when one of these credit card companies decide to go after me and file court papers to force some sort of payment? Can I easily be denied declaring bankruptcy??


Asked on 9/27/07, 2:59 am

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

Re: Bankruptcy....

Most people like a Chapter 7 bankruptcy which, if successful, wipes out most (if not all) debts. A Chapter 13 will allow you to pay back a percentage of your debts over 3 to 5 years.

Outside of a bankruptcy, a credit card issuer or its assignee usually has 4 years from the date of the last payment to file lawsuit. Otherwise, the statute of limitation has run and collection is barred. That's not the case, though, if they already hold a judgment against you.

A creditor's judgment such as a credit card would be discharged in that case. Whether you qualify for Chapter 7 requires an attorney's review of your finances, including your income, expenses, your income and spending history, etc. Feel free to contact me directly if you have more questions.

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Answered on 9/27/07, 3:19 am


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