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Ellen
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: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.
What state do you reside in?
Customer: replied 8 years ago.
I live in California.
Expert:  Ellen replied 8 years ago.

Hello,

 

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:
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
Ellen and other Bankruptcy Law Specialists are ready to help you