Legal Question in Bankruptcy in California

Should I file now or wait?

I built a home at the first of this year. I recently was off work due to having surgery, I did not receive any paychecks for the 2 months I was off. I had to pay 12,500.00 for the surgery. I used credit cards. I also had to use credit cards to pay my normal monthly bills, food and other expenses, including christmas. I began using one credit card to pay the other, because afterwards I couldn't afford to make the full payments on each card. I have about 50,000.00 in credit card debt (unsecured) (not all from when I was off work but probably at least half). I am back to work now, but know I am not going to be able to make the payments and pay the cards off. Is there a time limit I should wait before I try and file for bankruptcy? Should I continue to try and make payments or should I try and negotiate a settlement. But could I file bankruptcy after I made a settlement? Should I wait or just do it?


Asked on 1/02/03, 6:49 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Should I file now or wait?

It is not possible to accurately answer your questions without first having a comprehensive consultation. There are simply too many factors to consider and the explanation is beyond the scope of this service. If you would like a free phone consultation, please visit my website and then contact me to schedule a time. I will be happy to assist.

Mark

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Answered on 1/02/03, 6:53 pm
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Should I file now or wait?

Thank you for your inquiry.

Timing is important in considering filing. Under bankruptcy law, certain luxury purchases over $1000 within 60 days of the bankruptcy filing are presumed nondischargeable if a creditor objects.

Also, under existing bankruptcy law, cash advances agregating $1000 within 60 days of the bankruptcy filing are presumed nondischargeable.

Because it sounds like you made cash advances to pay other debts, you should plan on waiting 60 days or more after your last large purchase or cash advance to file.

If you made transfers of property to family members within one year, you may also find a problem with the timing, since a creditor or the trustee can go back one year and object to certain transfers to family members or other "insider" entities.

The best thing is to present your complete bankruptcy situation, including dates, to an attorney for a qualified opinion.

I hope this helped, but if you need more information, or want further advisement, please feel free to email me directly at [email protected]. Best of luck.

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Answered on 1/02/03, 7:37 pm


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