An all too common preliminary inquiry by a hypothetical debtor, and a reply. Episode 3 of a series.
Serena V. Brief description of your legal issue: I am in serious debt, besides my mortgage I owe roughly 20+ thousand in credit card debt.I owe the IRS and have been trying to make payments as best as possible. I need help!
Thank you for your inquiry. We likely can help a great deal. There are many variables and issues
to discuss, but here are a few of the recommendations. It appears you may have to file
a Ch. 13. This is primarily because of the tax debt. Ch. 13 is a repayment plan, and a
good way of dealing with taxes. It may be, however, that the taxes can be compromised or
eliminated, if they are old enough and certain rules are followed. If so, we will also discuss
Ch. 7 ‘straight’ bankruptcy. Either form will work to ‘deal with’ the credit card debt,
as well. As far as the mortgage, generally, to keep a property, you continue to pay, or
if it’s too expensive, you can return the house and walk away. If there are junior deeds
of trust or home equity loans, perhaps a ‘lien strip’ can be contemplated in Ch. 13, so those
possibilities need to be examined, as well. Come into our office, the consultation is free, and
we’ll go over these options in more detail. We have 3 offices in San Diego County,
Vista, Bonita and Downtown. You can see a map of our locations, along with other
information at our web page, www.debtclinic.com. Just click on the ‘Locations’ link.
Please call us at 1-877-NO-DEBTS (877-663-3287) to set up
that appointment. I will also ask our staff to call you to help
coordinate. I am also attaching a copy of our initial worksheet. If you
can fill it out as best you can, this will save a bit of time, and help
us in the review of your options. I am also attaching a recent newspaper
article where we were quoted extensively on the new laws. We look
forward to assisting you.
to discuss, but here are a few of the recommendations. It appears you may have to file
a Ch. 13. This is primarily because of the tax debt. Ch. 13 is a repayment plan, and a
good way of dealing with taxes. It may be, however, that the taxes can be compromised or
eliminated, if they are old enough and certain rules are followed. If so, we will also discuss
Ch. 7 ‘straight’ bankruptcy. Either form will work to ‘deal with’ the credit card debt,
as well. As far as the mortgage, generally, to keep a property, you continue to pay, or
if it’s too expensive, you can return the house and walk away. If there are junior deeds
of trust or home equity loans, perhaps a ‘lien strip’ can be contemplated in Ch. 13, so those
possibilities need to be examined, as well. Come into our office, the consultation is free, and
we’ll go over these options in more detail. We have 3 offices in San Diego County,
Vista, Bonita and Downtown. You can see a map of our locations, along with other
information at our web page, www.debtclinic.com. Just click on the ‘Locations’ link.
Please call us at 1-877-NO-DEBTS (877-663-3287) to set up
that appointment. I will also ask our staff to call you to help
coordinate. I am also attaching a copy of our initial worksheet. If you
can fill it out as best you can, this will save a bit of time, and help
us in the review of your options. I am also attaching a recent newspaper
article where we were quoted extensively on the new laws. We look
forward to assisting you.
Best Regards,
John C. Colwell
Attorney at Law
Debt Relief Legal Clinic
