Legal Question in Credit and Debt Law in California

If it is causing a hardship, you can apply to the issuing court for an exemption or at least a reduction in the amount levied each month.

There is no threshold amount required to permit filing of bankruptcy. The cost-benefit analysis is performed on a case-by-case basis. You've seen how debt-totals escalate. For a judgment debtor, the total amount ultimately paid can add up. See http://www.courtinfo.ca.gov/selfhelp/smallclaims/collectintro.htm#computeinterest.

On a tangent (not specific to your status, which is post-judgment): maintaining minimum payments in order to preclude a lawsuit and judgment can be a futile proposition for persons suffering hardship. *E.g.: with $10,000 of credit card debt, if you pay monthly 3% of the balance ($300) and your interest is 29%, it would take you nearly 6 years to pay off the debt and you'd ultimately pay a total of $20,700. This does not include additional fees and/or penalties, which may be accrued due to underpayments and/or late payments and does not include possible annual fees relevant to certain accounts.

*The above payoff calculation is courtesy of http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx and is not independently verified by the undersigned.

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