If you sign a contract with me then your creditors can’t call you anymore – they can only call me. Sometimes I tell people to think of this as the price of admission – you sign a contract with me and you’re making payments, and that means creditors can’t call you anymore. That’s how filing for bankruptcy can help you with creditors.
I Am Getting A Divorce. What Should I Do About My Bankruptcy?
If you’re already going through a bankruptcy but you’re getting a divorce, proceed with the bankruptcy too. In California, you’re dividing up your assets and your debt when you get a divorce, but if you’re in a bankruptcy then you don’t have any more debt. It can actually make your divorce easier because now you’re only dealing with child support, custody, and division of assets if there are any left. Usually, the assets are already divided within the bankruptcy.
Do I Have To List All My Property When I File For Bankruptcy?
Yes, you have to list all of your assets and all of your debts. Clients often tell me that they want to keep one credit card, but you can’t keep any credit cards because you have to list them all. You can’t give any creditor priority over any other. The only exception is that you don’t have to list any credit cards with a zero balance. However, I can’t guarantee that the credit card company won’t shut the card down when they review your credit report.
What Impact Does Filing A Bankruptcy Have On Creditors?
It gets rid of them. They stop calling you, they stop bugging you, they stop harassing you, and they go away. It makes your life peaceful again. Many of my clients come out of that 341 creditors’ meeting and ask me, “is that it?” and I’ll say, “That’s it.” They usually say, “I should have done this earlier.” I’m trying to get this information out there so people don’t feel that they’re bad, they don’t feel like criminals, they don’t go through all of their savings or all of their retirement. They don’t go through everything trying to get on top of things because all they’re really doing is digging their hole deeper.
Does My Spouse Have To File Bankruptcy Too If I Am Married?
Absolutely not. I often have clients who are engaged to be married, but one party has really bad credit. I sometimes advise them to file for bankruptcy now so that the credit doesn’t come into the marriage. I think a lot of people forget that once you’re married everything’s 50/50. I’ve also done bankruptcies where they’re married and one spouse still has good credit but the other spouse doesn’t. You can just have one party file for bankruptcy instead of both of them. For example, if I have a client with $50,000 in debt but the wife has only $4000 in debt, he can go bankrupt and she doesn’t have to. Now, will the creditors come after her? I haven’t seen it happen. Technically it’s a community property state but I haven’t seen it happen. So in that case, I would keep the wife out of it. If they have joint credit cards or joint property we would have to discuss that and decide what to do.
For more information on Filing For Bankruptcy In California, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (530) 317-5556 today.