Legal Question in Bankruptcy in California

Income Certification
I have worked in the real estate/loan industry for the past 1 1/2 yrs. and have not made much if any money. I have been living off savings, small 401K, equity line of credit and yes credit cards.

I am completely insolvent and just got a commission only sales job, the potential income is good, but I have not yet received income from a sale. My mortgage is 1 30 day late and so are the credit cards. ($36K) Deficient on mortgage around $120K. Also upside down on car loan. Will be getting a part time job soon, but that won't bring in much.

Question: What income will I use to file BK? Should I file now before mortgage is two months in default?

Asked on 3/03/08, 7:48 pm

Robert F. Cohen Law Office of Robert F. Cohen

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Re: Income Certification

Your budget should reflect your prospective but solid income for the next 12 months.

If you're living on credit cards, that could be a problem, as creditors might say you knew you were insolvent when doing so.

You should also look at the amount of equity you have for your line of credit, and whether that might disqualify you from a Chapter 7 bankruptcy.

Let me know if I could be of assistance.

Answered on 3/03/08, 9:42 pm

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