Legal Question in Bankruptcy in California

Settle Non-dischargeability claim OR convert to Chapter 13?

A creditor has brought a non-dischargeability claim against me, and is now offering a settlement for $20,000 lump sum OR $30,000 over 5 years ($500/month). Is it feasible to convert my entire bankruptcy case to a Chapter 13 from my Chapter 7 petition and pay even less than $500/month in total plan payments? Can you convert rather than litigate the nondischargeability claim? The creditor is American Express, and they have a very weak case against me. But I don't have an attorney nor can I pay for one either. Help!


Asked on 2/24/06, 1:06 am

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Settle Non-dischargeability claim OR convert to Chapter 13?

If the case was filed prior to October 17, 2005 then yes you can convert to CH. 13 (assuming you are otherwise eligible and can propose a repayment plan). How much you'd have to pay depends on your income, expenses, and non-exempt assets.

Read more
Answered on 2/24/06, 1:24 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California