Legal Question in Bankruptcy in California

Re: Debt Relief/Bankruptcy?

Bankruptcy may not be the solution for you. Depending upon how much your home is worth, you may not be able to exempt it from being liquidated in a Chapter 7 Bankruptcy. The issues surrounding bankruptcy are pretty complex, and given your situation, its very important that you contact a local, qualified bankruptcy attorney to discuss your options. Another option (that has nothing to do with the law, or attorneys, but may be helpful) might be a reverse-mortgage, which has its own ups and downs, but it could put cash in your pockets to pay off credit cards and might provide you with some additional income over the course of your retirement. Talk to a bankruptcy attorney first, and he or she should be familiar enough with reverse mortages to also analyze that option in addition to bankruptcy.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Re: Debt Relief/Bankruptcy?

If your home is worth more than $150,000 you would have to give it up in order to obtain a discharge in a Chapter 7 bankruptcy. You would be allowed to keep $150,000 from the sale to buy another home. If losing your home is not an option, then you need to talk to a lawyer about ways to save your home and still potentially qualify for bankruptcy.