Legal Question in Bankruptcy in California

Re: Do the ''new'' laws affect me and how?

Hello. the "new" laws you speak of have not yet become law and are not expected to this year, being that it is an election year. You and your husband can file a joint bankruptcy. In a bankruptcy all debts must be listed, including your car. However, normally it is not a problem to keep your car so long as your payments are up to date and the car is insured. Regarding the credit card you want to keep, So long as the card has a zero balance on the day the bankruptcy is filed, there is no requirement that it be listed. However, if your payments to the credit card company total $600 or more in the 90 days before filing bankruptcy, the payments must be disclosed and the bankruptcy trustee (the person who's job it is to administer and investigate your bankruptcy) can get the amount over $600 back from the creditor and share it with all the other creditors on the grounds that it is considered "preferential treatment". If the card has a balance on it, it must be listed in the bankruptcy, but you can request to "reaffirm" the debt, meaning you agree to repay the debt so long as the credit card company agrees to continue allowing you to have credit card charging priviliges. Normally the credit card company will require you to sign a "reaffirmation agreement" which exempts the reaffirmed amount from discharge in your bankruptcy. Thus, if you later default, you will not be protected from subsequent suit by your bankruptcy filing for that particular debt. You can change your mind after signing a "reaffirmation agreement" within a certain period of time. If you would like more detailed information, feel free to call me at 415/434-8840 or email me at [email protected] I represent clients in bankruptcy all over the state of California. Shaye Larkin, attorney

Re: Do the ''new'' laws affect me and how?

The specifics of your situation should be analyzed by an attorney. The bankruptcy trustee looks at whether there is discretionary income each month, that is, whether your husband's net income exceeds to any degree the regular expenses (without paying the creditors who would be discharged). Please feel free to call me on Friday if you're in Southern CA, at (310) 858-9771. Thanks. -Robert