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First, how much does it cost for a fairly simple Chapter 7 BK in Palm Springs, CA, or to have 1 CC default judgm negotiated.

Palm Springs, CA |

I don't want to file BK just because of one default judgment, which never should have been awarded. I do have excessive credit card debt, no assets, but none of the other companies have made any attempt to collect in over a year. I'm wondering if it would be better to try and settle the 1 default judgment instead of filing a chap 7 bk.

Attorney Answers 5


  1. Best answer

    You should get a free consultation to ensure that bankruptcy is your best and/or only option. A lot depends on the plaintiff and the amount of the judgment. If BK7 is your best bet, you are looking at about $1500 for a decent attorney on a simple case. Also note that you will have to pay at $306 filing fee along with 2 counseling courses that run about $60 total. Ensure you know about these fees in addition to what the attorney charges you.


  2. A simple Ch7 in Palm Springs would cost you around $1,500.
    You are free to attempt to settle the one, of course; but (1) the rest would still be on your credit report and (2) they still have another 3 yrs in which to choose to sue you.
    Whereas a Ch7 now could be out of the way in a few months and you would already be re-establishing your credit within a yr.


  3. I agree with Mr. Whitaker's answer. I only wish to point out that the sum he mentions would be for a VERY simple Chapter 7 and assumes your income is entirely from earnings for which you receive a W-2. It also would not include the filing fee.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for general information only. They are not legal advice. Answers must not be relied upon. Legal advice must be based on the interplay between specific exact facts and the law. This forum does not allow for the discussion of that interplay. My answer to any specific question would likely be different if that interplay were explored during an attorney-client relationship. I provide legal advice during the course of an attorney-client relationship only. The exchange of information through this forum does not establish such a relationship. That relationship is established only by personal and direct consultation with me followed by the execution of a written attorney-client agreement signed by each of us. The communications on this website are not privileged or confidential and I assume no duty to anyone by my participation on Avvo or because I have answered or commented on a question. All legal proceedings involve deadlines and time limiting statutes. So that legal rights are not lost for failure to timely take appropriate action and because I do not provide legal advice in answer to any question, if you are an interested party you should promptly and personally consult with an attorney for legal advice. Also, see Avvo's terms and conditions of use, specifically item 9, incorporated by this reference


  4. Most of the time it takes about 5-8 hours to prepare a chapter 7 for an attorney. Some cases can take even longer if they are complicated. In California the average hourly rate is probably about $260 an hour.


  5. You didn't mention the amount of the default judgment, but assuming you could settle it for a few hudred dollars, you may be ahead. However, as has been pointed out, for the cost of the banruptcy, you can virtually wipe the slate clean, and start over.

    The best course of action is to go in and consult with a local attorney. Many will offer a free or inexpensive initial consultation, and can give you a much better idea of the options best tailored to your case.

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