Written by San Francisco Bankruptcy Attorney, Jeena Cho
As a part 2 to my previous blog on this subject, I’m adding the following - if you are going to file for bankruptcy anyway you should consider cease paying your credit cards. Now, I know what you’re thinking. You’re probably thinking “I can’t do that!” or “I’ve been raised better” or “I’ve always paid my bills.” I know. You have really tried and done your best to get out of debt, but if the ultimate exit strategy is going to be bankruptcy, we need to focus on preserving your cash and other assets.
Frequently, I meet with clients who saw the writing on the wall, knew they were never going to get out of debt without bankruptcy, yet, they continued to exhaust what little resources they have to pay their creditors. There is no law that says you have to be flat broke to file for bankruptcy! In fact, you can keep quite a bit of your assets, including cash in bankruptcy. The amount of “stuff” you can keep is governed by the Exemption laws of each state. You can review California’s exemption rules here.
Disclaimer: Unfortunately, it is impossible to give legal information over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.
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