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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I had 3 houses that forclosed and I had 2 lines of credit from

Customer Question

I had 3 houses that forclosed and I had 2 lines of credit from my credit union, one for 75,000 and one for 50,000, I just got served a summons to appear to superior court in Arizona today from the credit unions attorney that is handling both loans. Can you please suggest what my legal recourse may be? I have other creditors after me as well, and I do not have a job at this present time, I have been trying to do some stay at home work, and I am off from my teaching job for the summer, and will not be returning to teaching in the fall.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

You may want to consider a chapter 7 bankruptcy. I will explain.


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 Arizona:
http://www.bankruptcyinformation.com/AZ_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 6 years ago.
You feel this is my only option at this point?
Expert:  Ellen replied 6 years ago.
based upon what you posted only, it appears to be the most reasonable option