I am in Keep Your Home California program where they are paying my mtg payment. Can I file chapter 7 now on my credit cards?

Asked almost 2 years ago - Riverside, CA

Specifically, I am in the Unemployment Mortgage Assistance program. If I file now (while they are paying payments on my behalf) will that throw me out of the program? I am being sued and harrased by credit card creditors and really need to file, but want to be sure I won't lose this important benefit.

Attorney answers (3)

  1. Michael Raymond Daymude

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . I do not know the answer to your specific question. Perhaps someone can give you a definite one but I suspect not because the program is so new. I write only to advise that, in my opinion, you should hold out as long as possible before you file for BK -- at least until you are back on your feet or some other circumstances makes filing a necessity. Simply being annoyed and harassed by creditors is not good enough reason, in my opinion, to file for BK. You can adopt practices which will make them go away.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  2. Kathryn Ursula Tokarska

    Contributor Level 16

    4

    Lawyers agree

    Answered . Get a consultation with a bankruptcy attorney. It's important to evaluate your complete financial situation to figure out how to best proceed. When to file can be as important as whether to do it at all. The attorney will want to know more details about debts, income, assets, and living expenses.

  3. Dorothy G Bunce

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . In order to answer your question, someone would need to be familiar with the terms and conditions of the program you are involved in. I would suggest that you take the paperwork you agreed to with you to an appointment for a consultation with a local bankruptcy attorney.

    I agree that bankruptcy isn't a step you will want to take merely due to creditor harassment. You would need to have an overwhelming amount of debt that you could never reasonably expect to repay if things turned around for you. Since you didn't indicate the amount of your credit card debt, I am unwilling to guess whether the amount of your debt makes a bankruptcy a smart choice.

    Hope this perspective helps!

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