SHOULD I FILE FOR BANKRUPTCY?

The bill collectors are calling.  You hate the poor soul who delivers your mail.  You stopped using your credit cards in public to avoid that embarrassing look the teller gives you when the card is declined.  Your paycheck doesn’t look like it will ever stretch to meet your debt and you don’t know what to do… so what about that bankruptcy thing?

There are two main types of bankruptcy for the average person with a lot of consumer debt:  Chapter 7 and Chapter 13.

Chapter 7 is often preferred because it comes the closest to wiping the slate clean.  Your debt.  Gone.  (Of course there are exceptions, Ask Roxy readers know that there are always exceptions in law— that is what makes it fun!).  Chapter 13 has this ugly term associated with it called “repayment plan” so let’s dig into the details of Chapter 7 first. 

MEDI-CAL LEGISLATION UPDATE

2016 UPDATE: NEW SIMILAR LEGISLATION WAS SIGNED BY GOV. BROWN AND WILL GO INTO EFFECT 1/1/2017! SEE HERE FOR MORE INFORMATION. 

2014 UPDATE:  THIS LEGISLATION WAS VETOED BY GOVERNOR BROWN.


This post is a continuation of my Medi-Cal Alert series which includes the previous posts:



ALERT! GO ON MEDI-CAL AND LOSE YOUR FAMILY HOME! (12/10/13)


and

NEW MEDI-CAL LEGISLATION! SPREAD THE WORD. (3/28/14)