Legal Question in Credit and Debt Law in California

Re: debt settlement nightmare

Chapters 7 and 13 are individual bankruptcies and Chapter 11 is a reorganization plan for businesses. Chapter 7 discharges unsecured debt such as credit cards, while Chapter 11 and 13 allow the debtor to propose a plan of reorganization through which all of the debtor's debts will be repaid either in full or for less than the full amount owed.

Your reference to "received summon [sic] for 23,000 talking lien and garnishments" makes little sense. Were you served with a summons and complaint? If so, what are you being sued for, breach of contract? Collection of a consumer debt? An automobile accident? A summons and complaint generally does not make any reference to liens and/or garnishments. You probably need to visit an attorney in your area to show the attorney whatever it is you are talking about so that you can determine what your rights and obligations are.

CAUTION. If you were served with a summons and complaint you only have 30 days within which to respond. Failure to do so will result in your waver of significant legal rights and may result in a default judgment against you. You should seek the advise and assistance of an attorney immeidately to protect your rights.

Re: debt settlement nightmare

I'm going to suggest that you call a local bankruptcy attorney and schedule an appointment. Rather than trying to explain the three types of bankruptcy (there are tons of sites on the internet explaining the differences), you can generally meet with a bankruptcy attorney for an initial consultation for free. They can tell you what your options are, and what you should be considering.

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