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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have been self-employed since 1992 - its a service business,

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I have been self-employed since 1992 - it's a service business, I draw house plans. Through the years I have kept afloat. Lately, The jobs are few and far between. I have a $1300 house payment and a $310 car payment. I get Social Security - $1065 per mo. I have been looking for other jobs - anything. When the months were "skinny", I resorted to 3 different credit cards for car maintenance, Doctor visits, and food and gas. (Sam's club). I now owe 10k on those. Should I be thinking about bankruptcy? Or just wait a little longer and see if the jobs come? Thank you for your time, Sincerely, Ruby
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

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 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