Thank you for your question. I am happy to assist you.
I am a lawyer with 25 years experience. While I am not your lawyer and do not represent you, I will endeavor to provide you with legal information through this open and nonconfidential forum.
Typically a settlement conference or mediation would be the most economical. However that said, if you owe the credit card company money they will likely prevail.
Instead 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: