Legal Question in Bankruptcy in California

Re: Chapter 7 or Chapter 13

What you need is more income, so get a couple more part-time jobs. The debts you describe are

manageable. Bankruptcy (Chapter 7)would result in no relief for the debts that are in your sister's name, except

that you would be legally off the hook with your sister. But I doubt if she undertook to pay the debts

because of a "legal" relationship with you. As for your car loan, the finance company would be entitled

to repossess the car, but in most cases finance companies are happy to let you keep the vehicle if you

"reaffirm" the debt - that is you get a court order that allows you to keep paying. But in your case, with

not very much income, they may prefer to take back the car. It would be up to them and the court, not

you, to decide. The path to success in America takes these steps: (1) get in debt; (2) get out of debt;

(3) save some money; (4) buy a house. Since your debts appear to be in your sister's name, you have

not yet accomplished the first step. So as soon as you can, arrange to take over all the debt your sister

is managing in your name, then you can move on to the next steps. Good luck.

Re: Chapter 7 or Chapter 13

I doubt your car would be repossessed, depending on what its value is and the value of your other assets and whether or not you still make payments on it. I'm not sure where your specific area is, but the fees for a Ch. 7 are usually around $1,000. If you would like a free phone consult, please visit my webpage at http://www.bklaw.com/consult.html for what information you need and then give me a call; I will be happy to assist.