Legal Question in Bankruptcy in California

Re: Time Limit

There may be a time limit as the US congress has recently decided to dramatically change the bankruptcy laws to make it much, much more difficult for a consumer to file and obtain a discharge. How long it will be before these laws take effect is unknown, but it could be soon, very soon. So, if you are thinking about filing, now is the time before the laws turn against you. As far as the rest of your question goes about how long you will continue to be in debt, the answer really depends on numerous factors like the statute of limitations, whether judgments have been entered against you, whether the creditor is still trying to enforce the debt, etc.

Re: Time Limit

If you have never filed bankruptcy, you can file at once. However, in CA all negatives on a credit report must be removed. You will have to continue to ask the credit reporting companies to remove this.

Re: Time Limit

Not such a simple question to answer. Have people sued you? There is a four year statute in CA where people can no longer sue you. Additionally a judgment is usually good for 10 (ten) years, unless renewed.

As far as reporting goes that is a different matter. You may wnat to pull your three credit reports and set up an appointment. All you may need is credit clean up.

Good Luck

CS

Re: Time Limit

Thank you for your posting. I am not sure if I entirely understand your question. For one, negative information stays on your credit report for 7 years. Also, you can only file a Chapter 7 about once every 7 years. A bankruptcy stays on your credit report every 10 years.

So, to answer your question, as best as I can, NO, there is no time limit on filing bankruptcy, and as far as do you have to file, or not, that depends on much more information. If you have unsecured debt that you wish to discharge, or are in danger of losing a secured debt, such as a car or a home, then you may wish to file bankruptcy to relieve those situations.