Legal Question in Bankruptcy in California

credit card bankrupcy

I'm a single mom with 2-and a 4-year old, and a homeowner, is considering filing for bankruptcy. Please tell me what should I consider and more importantly whether the BK is right or wrong for me. I have $87,350 in unsecured credit card purchases on my Discover, Mastercard and AMEX cards. All of the $87,350 was purchased over a 10 year period. None of these items were purchased within sex months. I have been consistent on paying all of my credit card bills for the past year and all on time. My combined minimal monthly payments on the $87,350 total $3,125.00. Advise me whether this debt is dischargeable or not. Please explain to me.


Asked on 4/21/09, 2:36 am

3 Answers from Attorneys
Shalem Shem-Tov

Re: credit card bankrupcy

Sounds like your credit card debts will be dischargeable in bankruptcy. Even if you do not qualify for Ch. 7, Ch. 13 would most likely still be an option. While Ch. 13 may not completely get rid of your debt, it could substantially reduce it.

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Answered on 4/23/09, 12:57 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: credit card bankrupcy

The credit card debts are likely dischargeable if you qualify for a Chapter 7 bankruptcy--this depends on your income being lower than the median and your home equity being less than the allowed exemption (usually $50,000 if you're under 65). If the equity is more, you'd have to contribute the overage to the bankruptcy trustee to distribute among your creditors.

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Answered on 4/21/09, 1:39 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: credit card bankrupcy

A person who qualifies for a Chapter 7 bankruptcy usually is able to discharge unsecured credit card debts such as those you describe. It will take a thorough analysis of your income and expenditures over the past several months to determine whether you qualify.

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Answered on 4/21/09, 3:04 am


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