California Bankruptcy Legal Questions

You ask a very good question.  Weighing the pros and cons of your different options is important.  The best way to learn about those options is to have a consultation with an experienced bankruptcy attorney in your state. I wrote an article addressing your exact question, so to assist you in the meantime, you may wish to read: https://www.bklaw.com/bankruptcy-blog/2014/10/debt-settlement-or-consolidation/  Hope this helped you on the right path.  ... Read More

First of all, what type of business are we talking about here?  Is this a corporation? Partnership?  Sole proprietorship?  If it is the former two, there is no discharge of debts in Chapter 7 for corporations or partnerships, so unless you're talking about doing a Chapter 11 reorganization (which costs between $25,000-$100,000 in attorneys fees), then you're out of luck. Second, you can't transfer debts. (Maybe this should have been first).  You're either personally liable for the debts or you're not.  Why the debts were incurred is irrelevant.  And unless the creditors each agree to have a 3rd party (in your case, your "business") substitute in as the obligor on the debts in your place (something I've never heard of happening) then what you're suggesting is not going to happen. Sounds like you are in need of a consultation with an experienced bankruptcy attorney who can explain all your options to you after getting the necessary information. In the meantime, the following link may be of use to you: https://www.bklaw.com/business-bankruptcy/    ... Read More

If you incur debt without the intent to repay, that is grounds for denial of discharge of the debt in a bankruptcy case. As far as what you should do in your situation, and what--if any--assets would be at risk, you need to have a consultation with an experienced bankruptcy attorney in your state to go over all the specifics and provide you with the advice you seek.... Read More

It depends on who the creditor is. If the creditor is a government agency, like a branch of the state or the federal government, the creditor absolutely can garnish your social security disability check. Once this check hits your bank account, unless the disability check is the only money that goes into this account, it can lose its protection from non-government creditors if you commingle money from any other source into this account. So do not deposit a birthday check or bingo winnings into your bank account, because one little mistake can make an otherwise protected account vulnerable.... Read More

I've never read your mortgage, so I don't know the terms of your mortgage. Most mortgages with large lenders are only accelerated if the lender sends a notice to you that it has been accelerated. You can't reaffirm a mortgage, reaffirmation of a mortgage gives a debtor significant obligations and no benefits. That will never pass the "best interest of the debtor" test. You are not personally liable on the mortgage but it is a lien against the house.... Read More

I cannot believe that you do not understand that losing the adversary case meant that you could not use the bankruptcy court to eliminate this debt. Your choice is now either to make a payment arrangement with the creditor or negotiate a settlement. Either choice will be difficult after having been through a lengthy litigation process.... Read More

Whether you would be able to keep your RVs with no equity would be a decision for your bankruptcy trustee to make is you decide to file Chapter 7 bankruptcy. For sure, you will not be able to retain 2 rental properties if you file Chapter 7. You may want to look for a different solution to your financial problems other than through bankruptcy because you stand to lose a lot.... Read More