Legal Question in Bankruptcy in California

Question of timing the chapter 7 filing

My house has been sold and escrow closes in about 10 days.I will net about 25k$. After 15 years doing the same job,I'm leaving my employer this coming friday.Just can't stand the job anymore, too much pressure.

I have about 10k$ in a 401k which will stay there.

I have no savings, only the equity from my house.

I owe about 65k$ on credit cards to banks who are now starting to call me as I haven't made payments in about 2 months.

I have only made 3 or 4 or so charges,only for gas and groceries last 2 months.

I have a car valued at 1500$.

I plan on visiting family back east till after the new year and then come back to california.

Can anyone see any legal problem with filing chap 7 when I get back,after renting a new place of course,and prior to finding work?

I will be moving to Orange county area and will be needing an attorney to handle this.


Asked on 11/28/04, 7:49 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Question of timing the chapter 7 filing

There's no problem, but you may need to "use" some of the proceeds of the sale of your house so it doesn't get taken by the Trustee in a CH. 7. When you're ready, if you'd like a free phone consultation, please visit http://www.bklaw.com/consult.html and once you have gathered the necessary information and submitted the forms, contact me to schedule an appointment.

REgards,

Mark

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Answered on 11/29/04, 12:34 am
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Question of timing the chapter 7 filing

That all sounds fine, but if the money isn't put back into a house for you, the exemption falls to about $18,000, so you might have "extra" money that would go to creditors in a Chapter 7. On the other hand, you may need some of that $25,000 to live on before returning to California, so that may not be a problem.

Your car would also be exempt from creditors, as it falls under the equity limit allowed.

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Answered on 11/30/04, 12:06 pm


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