Legal Question in Bankruptcy in California

Bankruptcy and Debt Negotiation

The have credit card debt

approx $105000 (current settlement amount $65000)I I

I have not been employed for some time but have been

endeavoring to get a business going, I have been

paying the debt out of savings (including IRA which has

produced a tax liability for which an Offer in

Compromise is pending)

1. I have settled with one account

2 Three are are reduced balance no interest payoff

settlements

3. One is full balance no interest payoff settlement

4. Several are reduced interest payoffs

5. The last is filing suit

Questions

1.What are the longterm credit/employment

consequences of judgment liens vs bankruptcy?

2.Can I use the Chapter 7 process to persuade all

these creditors to accept a partial settlement deferred

repayment plan in lieu of completing a Chapter 7 ( my

non-exempt assets are zero)?

(I do not qualify for Chapter 13 since I do not have

steady (or any) income)


Asked on 4/09/02, 3:59 pm

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

Re: Bankruptcy and Debt Negotiation

I'm not sure i understand you question but a chapter seven would eliminate all the debt, nothing to negotiate.

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Answered on 4/09/02, 4:23 pm
Victor Hobbs Victor E. Hobbs

Re: Bankruptcy and Debt Negotiation

I think the failure to repay your creditors is worse on your credit than the B. K. The B..K., with a knowledgeable creditor, may improve your chance to get new credit. I doubt the bad credit -v- bankruptcy has an adverse impact on your employability. I doubt threatening to file B. K. will improve your adversarial position with negotiating credit repayment terms. Most companies have set policies. And will not deviate from them. However, use it as a tactic. Rule number one is repayment plans should only be entered into when the creditor will remove adverse comments on your credit report. And one blot on your credit report is as bad as ten. Otherwise you're wasting your time, and worse yet money.

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Answered on 4/09/02, 5:45 pm


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