Legal Question in Credit and Debt Law in California

Re: Credit card default

Evaluting a person's eligibility for Chapter 7 (traditional bankruptcy) or Chapter 13 (wage earner repayment plan) has become much more ocmplicated under the new law. You should consult with a local bankruptcy attorney as soon as possible.

If you don't pay your credit cards, they do have the option of suing you. If the get a judgment they can put a lien on your house. However, homestead exemption laws make it difficult for a judgment creditor to sell your residence to pay a debt.

Your ability to keep your home in bankrutpcy depends on a number of factors, including the amount of equity, the amount of your homestead (which might be 1 of 3 different amounts) and the type of bankruptcy you file.

The income for the purpose of filing bankruptcy ad analyzing eligbility for a Chapter 7 discharge is based on the average of your income for the last 6 months.

As bankruptcy a viable option for you? It is difficult to tell from what you have posted, so I strongly encourage you to consult a local attorney now before you get to much further in the hole.

Re: Credit card default

http://www.suzeorman.com

Re: Credit card default

we certainly empathize with your situation, and have personally helped hundreds of clients in similar situations as yourself get out of debt without having to file bankruptcy (which remains on your record for 10 years and must be disclosed to employers, etc..when requested). from the facts you have given so far, it is difficult to assess your best options here. bankruptcy should be a LAST resort period. so, if you would like a free consultation, contact us today and we will go over your options based on more facts you can give us. but in a nutshell, do NOT file for bankruptcy unless you feel its your last alternative, especially since you may be "judgment bullet-proof" if your creditor do in fact try to sue you for "breach of (credit card) contract". we can help you here like we have countless others most likely.