My close relatives are thinking about declaring bankruptcy, they're at least 100-150 thousand dollars in debt. They can just make the minimum payments, and sometimes not even, and now one of them isn't working so, doesn't seem to be much hope for them. They also have a very large mortgage, and are forced to sell their house. The house is in both their names (they're married). Some of their credit cards are joint accounts, like they both have cards with the same number. If they declared bankruptcy, could one of them just do that, rather than both of them? The majority of the money that they owe is on the husband's credit cards, but some of the money like I said is joint. Any advice on that, from anyone that's been through it? Any good bankruptcy lawyers agencies in the Los Angeles area? Thanks. :o)
2006-11-24 11:31:48 · 7 answers · asked by Emo B 5 in Business & Finance ➔ Other - Business & Finance
If most of the debt is credit cards, they may be able to negotiate a smaller monthly payment to reduce the debt. It isn't in anyone's best interest for them to file bankruptcy. If they sell their home and file bankruptcy, the home could be brought back into the bankruptcy if it is sold within 6 months of filling. Some property can be brought back into the estate for a year. Bankruptcy laws changed about a year or so ago. You can no longer just discharge your debts. In most cases, you must meet certain income criteria to get a discharge. If you don't qualify, you will need to file a repayment schedule which could run from 3-5 years. Given the new bankruptcy laws, I would suggest that they make a list of all their creditors and income and see if something could be worked out at a lower cost to help them get out of debt. I am very sorry for their current situation. You may also suggest for them to contact a consumer conseling agency. Most cities have something such as this. They can sometimes work out a payment schedule to help you get out of debt without filing bankruptcy. As a last resort, you could contact a bankruptcy attorney. I would contact the District Court, which handles bankruptcy, and ask them of some names of lawyers who do a lot of bankruptcies. They cannot recommend anyone, but could give you several names you could contact.
Creditors will come after both of them if they are both on the loan papers, even if only one used the cards. If one files bankruptcy the other one will be responsible for the debts if they are jointly owned. There are exemptions for your home which varies from state to state. It is usually called a homestead exemption. California used to have a high exemption for bankruptcy. A bankruptcy could help them to keep their home. Good luck.
2006-11-24 11:52:16 · answer #1 · answered by Flyby 6 · 1⤊ 0⤋
They could just file bankruptcy for the husband only debts. The joint accounts would have to be paid off in order to save the wifes credit. If the claim the house on the bankruptcy and do not pay the outstanding debt on the house it will cause a bankruptcy to show on her credit report.
2006-11-24 11:35:31 · answer #2 · answered by MRod 5 · 0⤊ 0⤋
I'm a bankruptcy attorney attorney in San Diego. The people you describe sound like potential candidates for a Chapter 7 bankruptcy, but their situation must be analyzed in much for detail by a bankruptcy attorney. The should really call the lawyer referral service for the L.A. County Bar Association. Check out the link below.
2006-11-25 09:54:32 · answer #3 · answered by Carl 7 · 0⤊ 0⤋
Well they should have thought about this before the laws changed and filed Chapter 13 and rebuilt their credit. But, since the Banks have started the Ads about credit counseling and help, at no cost, (Acorn, oops, sorry, RICO, first answer mentions these), the Government has gave in to F you. But, talk to a GOOD lawyer and learn your options now.
2006-11-24 11:42:40 · answer #4 · answered by Snaglefritz 7 · 0⤊ 0⤋
Why suggest they get some free credit counseling first. There are alot of non-profits. Check out Acorn.
2006-11-24 11:33:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋
they could in basic terms document financial harm for the husband in basic terms debts. The joint debts could desire to could desire to prefer to be paid off with the point to shop the wifes credit. If the declare the residing house on the financial harm and don't pay the superb debt on the residing house it is going to reason a financial harm to coach on her credit checklist.
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2006-11-24 11:47:29 · answer #7 · answered by mna p 1 · 0⤊ 0⤋