Legal Question in Bankruptcy in Georgia

I have no outstanding debt except a $70,000 legal bill from 3 different lawyers in california. They were my counsil for a very ugly divorce (husband in prison). I have 2 children, live in an aprtment and have one older car, and a steady job. I can not pay this amount, do i need to declare bankruptcy before they garnish my wages or should I offer what i can pay which at most may be 15 cents on the dollar or around $10 grand.


Asked on 3/07/10, 8:45 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Although I'd want to see your information to advise you, it would seem to make far more sense to spend $1500 or less on bankruptcy than $70,000 (or, in the unlikely even you could settle for $10,000, that amount). Note that if you settle for less than the full amount, you may get a 1099 and owe income taxes on the amount forgiven (there is no similar tax in bankruptcy), and that could cost you another $10,000 in income taxes next year. See a bankruptcy lawyer in your area to weigh the options.

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Answered on 3/12/10, 11:21 pm


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