Legal Question in Credit and Debt Law in California

In August, my husband had to literally close and walk away from his Carson, California dental practice of 25 years due to lack of patients and heavy debt.. We've used all of our savings to stay in the house we own. Two weeks ago he started a job at an army base in Texas. My plan is to move to Texas in a few months. He is being sued on leased dental equipment in the amount of 1/2 million dollars. Regarding the suit there is going to be a case management hearing in January.

Question - do we sell our house now? The house is worth about $600,000. We owe $410,000. If we sell the house then what do we do with the money - or do we not sell our house until after the hearing???

I'm in a quandary. If you can help with an answer I'd be most appreciative.

Melanie Alkov


Asked on 12/07/09, 8:15 pm

1 Answer from Attorneys
Melvin C. Belli The Belli Law Firm

Sell your house as soon as possible so you have the money in hand before the leasing Company gets a judgment against you. And it is easier to negotiate with cash in hand. Also you want to make sure the property values don't fall too. At some point you should hire someone to negotiate with the leasing company and everyone else. You might want to consider bankruptcy if you have other creditors too. At a minimum you should try to settle with eh leasing company but don't tell them you are selling the house and have any money. They need to get realistic about their debt too. They can't expect to get all their money in this economy and if they persist then you should tell them you will file bankruptcy and that may wipe out the debt.

So at the end of the day go see a bankruptcy attorney because it sounds like you may need one and they can make a more credible threat with your creditor and it could save you hundreds of thousands of dollars.

Good luck.

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Answered on 12/14/09, 8:18 pm


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