Legal Question in Bankruptcy in California

Re: Keeping home

Well, yours is a tricky situation, but a Chapter 13 might be a way to get out of the lease and keep your home. You would have to make substantial monthly payments, although I suspect less than you are paying now. I cannot give you a more detailed response without knowing more about your situation, such as the value of your other assets, your age, marital status, monthly income and expenses, etc. so I can anticipate exemptions that we could take, and what path to go. If you live in the Los Angeles area and would like a consultation, please give me a call. I will be happy to assist.

Re: Keeping home

First, if the main problem is the lease vehicle, then you should find out the fair market value of the vehicle, and what the residual is on the lease. I would suggest you speak to a knowledgeable vehicle lease broker to see how far off you are from possibly selling the vehicle without a significant difference. If this is not promising, then bankruptcy should be a consideration. Whether your home would be in jeopardy depends on what homestead exemption is available. The homestead exemption to protect your home could either be 50/75/125k depending on various factors. Assuming you are unable to protect the property in a chapter 7, than a chapter 13 might have to be a consideration, however, the plan payment may be a little high.

I am a certified bankruptcy law specialist, state bar of California. We offer free initial consultations; do not hesitate to call. 213-625-0161