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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I need to settle my credit card debt but want to find out the

Resolved Question:

I need to settle my credit card debt but want to find out the best way. I spoke to a debt settlement company and they tell me one thing but Credit Counseling Services tells me another. Should I go through either type of company or just declare bankruptcy. I don't know who to believe anymore.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
What state do you reside in?
Customer: replied 7 years ago.
I live in California.
Expert:  Ellen replied 7 years ago.



You can be sued and receive collection calls while negotiating outside of bankruptcy.


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:


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

Thank you,
Ellen and other Bankruptcy Law Specialists are ready to help you