Legal Question in Bankruptcy in California

That's a classic Chapter 7 scenario and the debt should be dischargeable. Call my office for information on how to get a free consultation if you are dealing with this issue in real life.

That depends. For example, if the bank alleged & proved fraud, your're going to have an issue. You also have to qualify for the Ch. 7, meaning your income should be at or below a certain amount based on family size and the area you live. If you make over the "medium" amount, you really should consult an attorney and have the paperwork properly prepared and be represented. If you're self-employed, be prepared to produce legitimate and detailed profit and loss statements....

When dealing with potentially discharging such large amounts of debt, it is best to consult and retain an attorney. In the long run, paying a few thousand dollars and walking away from huge liability is well worth it.

Good luck!

This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.

One final note ... assuming the debt is dischargeable (no fraud) and assuming your income qualifies you for Chapter 7, you may still have to pay some (or all) of the debt if you have assets that are not completely exemptable.