Legal Question in Bankruptcy in California
California Bankruptcy
I have a son who ran up the charges on my Home Depot credit card to 26,000.00. Can I file bankruptcy on this without including a home equity loan that I have for 35,000.00, also, I own my home outright and I also have a 50K CD. The fact that I own a home without owing anything on it, is that going to make it where I do not qualify for a bankruptcy
2 Answers from Attorneys
Re: California Bankruptcy
No, you cannot pick and choose among your debts and creditors. You have assets from which to satisfy your debt, so you are not a good candidate for bankruptcy. Also, it makes no difference whether you ran up the debt or your son did; it is your card and you let him use it, so it is your debt.
Re: California Bankruptcy
You should consult with a bankruptcy attorney. A typical homeowner can exempt $50k in equity if it is his/her residence. For older debtors and for those with disabilities and/or families, the exemption could be higher. Thus, assuming your home is worth a lot more than $50,000, it doesn't sound like a Chapter 7 debt liquidation would be the way to go. In addition, the CD could also be history.
It appears that you have sufficient assets to pay the credit card and your other debts. You might want to work out a payment plan, however, so that you can avoid a lawsuit and collection. Of course, you will have to do what you can to have your son repay you for the debt he incurred.
Good luck!
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