Legal Question in Bankruptcy in California

My husband lost his job in October of 2008. I was a homemaker. He and I have been searching for employment, but have not found any as of yet.

As a result, we have depleted all of our resources in trying to pay our mortgage and other debts. Unfortunately, we ran out of money and sold our home in a short sale. We now live with my mother.

We have been able to make the full monthly payment on some of the small credit balances because of the unemployment by husband is receiving. Others have been assigned to a hardship program which reduces the payment except for one.

We have continued to make a good faith payment since March, but it isn't what is due each month. This one has not been willing to enter into any type of hardship program and has told us that we have until the 29th of September to make a substantial payment. If not, they will write off the debt and have stated that it will be the worse possible thing to appear on our credit report. We are seriously considering filing for bankruptcy. Don't know what else to do.

My question is: What could possibly be worse than having bankruptcy appear on your credit report? I know they have already reported us late for several months.


Asked on 9/18/09, 11:49 am

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Bankruptcy might be a solution for you, so as not to deplete your small monthly income. After a bankruptcy is concluded, you might be considered better credit risks because you would not be able to file another bankruptcy for 8 years. If you should default on new credit, creditors would have legal recourse without fear of another bankruptcy.

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Answered on 9/18/09, 4:57 pm


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