Legal Question in Bankruptcy in California

Overwhelming debts

I was injured and out of work for a few years. During that time I was able to make minimum payments on my credit cards from my savings. As I ran out of money, I was late several times and now my interest rates are 25-29%. I have been working for about a year taking home $2500/mo; I pay around $1,000/mo on the debt that never seems to decrease because of the high interest. My total unsecured debt is $25,000 (all credit cards and a few remaining doctor bills). I've elimiated Debt reduction strategies because they appear to cause a taxeable event. I have no assets to speak of, no savings and my checking account is drained each month. Should I consider filing bankruptcy? In CA only 75% of my wages are exempt but I don't understand what that means exactly. I believe my wages are safe after the filing date but what happens before that date?

Thank you for any help.


Asked on 11/04/04, 6:04 pm

4 Answers from Attorneys
Lauren Ross Lauren Ross

Re: Overwhelming debts

Yes bankruptcy is an option you should seriously explore, based on the information you provided.

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Answered on 11/04/04, 7:27 pm
Mark Markus Law Office of Mark J. Markus

Re: Overwhelming debts

Sounds like bankruptcy may be a good option for you. If you would like a free phone consultation, please visit my webpage at http://www.bklaw.com/consult.html and once you have gathered all the information and submitted the forms, please contact me to schedule an appointment. Regards, Mark

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Answered on 11/04/04, 7:28 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Overwhelming debts

You should meet with a bankruptcy attorney to see if filing a Chapter 7 or 13 would work for you--it sounds like you would qualify.

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Answered on 11/04/04, 7:32 pm
Judith Deming Deming & Associates

Re: Overwhelming debts

Yes, Chapter 7 is definitely an option you should consider in order to give yourself a fresh start. You would be wise to consult a bankruptcy attorney to give you specific advice.

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Answered on 11/05/04, 9:36 am


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