Legal Question in Bankruptcy in California

Chapter 7 is the most direct route to cancel out your credit card debt. Eligibility to file for chapter 7 relief is based upon an analysis of your income and expenses and you must also consider whether any of your property is subject to liquidation. A completed chapter 13 payment plan can permit you to cancel a second mortgage if you owe more on the first mortgage than the house is worth. However, chapter 13's are designed for persons with regular income.

You would need to consult with a bankruptcy attorney in your area to determine the best option and the best timing. Time is always of the essence in bankruptcy, so it's best to consult today.

People often file for Chapter 13 to get caught up on their mortgage payments as well as getting rid of their credit card debt. One of the requirements of a Chapter 13 plan is that you must have enough income to keep paying your mortgage payments plus any additional amount per month to get caught up. Chapter 13 is very hard even with an attorney and it doesn't sound like you can even afford your current mortgage payment. Chapter 7 might be an option for you, but it won't help you save your house if you don't make arrangements on the past due balance.

I suggest that you go to the website for the National Association of Consumer Bankruptcy Attorneys and find an attorney near you that can more fully explain your bankruptcy options to you.