Legal Question in Bankruptcy in California

Re: chapter 7 or chapter 13

You may be better off negotiating with the credit card companies.

The equity in your home is protected up to $150,000 (if you're over 65 or disabled), otherwise up to $75,000 for married couples or $50,000 for single persons. Anything above that is available to creditors in a Chapter 7 or 13 bankruptcy. If the equity in your home exceeds the debts you have, even after factoring in your homestead exemption, a Chapter 13 bankruptcy would require 100% repayment to creditors.

You may want to try to negotiate lump sum payoffs to the creditors instead, and try to do it before they obtain judgments against you--any judgments they get will turn into liens against your home. I'd suggest reviewing your assets and liabilities with a bankruptcy/debt negotiation attorney to see which option looks best for you--even a 100% Chapter 13 repayment plan may work out better than the minimum payments you're required to make now.

Re: chapter 7 or chapter 13

Please note that..any equity beyond Homestead exemption..is very much up for grab...Trstee's office can do a trustee's sell....of the house which you definitely do not want. As the previous attorney said you have couple of options. You did not mention whether...you have monthly cashflow..which is necessary to get a chapter 13 plan conformed.

Re: chapter 7 or chapter 13

If your home is worth as much as you believe, then the best course of action would depend upon whether you are employed and can make greater mortgage payments; if so, get a second loan on your home or refinance and get enough to pay off creditors. If that is not possible, sell your home and use the proceeds after paying off your mortgage, to satisfy your debts.