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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have been using credit cards for the last 5 months really

Resolved Question:

I have been using credit cards for the last 5 months really heavy because I got cut in pay and my mom back home needed some help. Now I am getting to the point that I have about 130K in credit card debt and I can not pay it any longer. But I am afraid how is that look like if I try to file bakrupcy being that I have been using credit cards for the last 5 months?? I live in CA.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
Hello,

You will want to stop using the credit cards for at least 60 days prior to filing bankruptcy. It will "look" like you had a cut in pay and could not meet your expenses. This is not unusual.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

 

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

 

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for California:
http://www.bankruptcyinformation.com/CA_exemp.htm

 

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,
FLAandNYLAWYER
Customer: replied 7 years ago.
Thank you. How many months back they usually look on your credit card and bank statements? Also I am legally married but my husband name is XXXXX XXXXX any of these credit cards. Would that affect him?
Expert:  Ellen replied 7 years ago.

Hello,

 

A six month lookback period is typical.

 

A husband and wife are not required to file a bankruptcy jointly. One party can file without the other.

 

The effect on the non-filing spouse will be dependent upon whether there are joint debts and/or joint assets. If there are no joint debts and no joint assets, there may be little or no effect on the non-filing spouse. If there are joint debts and/or joint assets, the non-filing spouse would remain liable on the joint debt and the joint assets would need to be included in the filing.

 

I hope that the information which I provided was helpful to you.

 

 

Please click ACCEPT/BONUS so that I can get credit for my work

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Ellen and other Bankruptcy Law Specialists are ready to help you