Legal Question in Bankruptcy in California

What are my options at this time I have not the means to pay my credit cards. My monthley income is 1,099 (pension) 600 (soc sec wifes death ben) 1,700 (unemployment running out). My payments are morgage 1,200 + taxes, 300 utils, 300 car payment, ? insurences ? auto usage, ? food and personel. My house is upside down (I am on deed but loan papers under my daughter) I owe about 7,000 on car .My only asset is a time share that I am currently trying to sell. Is bankruptcy my best option?


Asked on 12/17/09, 12:09 pm

1 Answer from Attorneys
Melvin C. Belli The Belli Law Firm

Perhaps, but I would first try to negotiate a settlement with your credit card companies and modify the mortgage on your home.

Given the tough economic times the credit card companies will usually make a settlement if you are delinquent and sometimes you can get the mortgage modified too. HUD guideline suggest that you should be spending between 31% and 38% of your gross income on housing expense which is principal and interest on the first, insurance, property taxes and homeowners association fees, if any.

Credit card companies depending on your situation could settle anywhere for 25% to half of the balance owed.

I would try this first before filing bankruptcy.

Good luck and hope this helps.

Read more
Answered on 12/23/09, 10:00 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California