Having been further and further behind during the last three years, plus with the loss of my last client and the small fact that the commuter car can no longer go commuting, we see no way out of our debt.

If both I and my partner declare individual bankruptcy what will happen?

I may not need to, I do not bank nor do I have credit cards, however, the utility bills are in my name (Rent really isn't an issue, its behind a few months, but I'm certain we will catch up - the lease is in my name). All of the other things are in my partner's name since he had credit (a while ago) and it was easier to keep everything so his checks would go to the right account (We have had issues where checks were lost for utilities simply because the bill was in my name and the check was in his).

How long does the process of bankruptcy take and what can we expect to happen?

The things we have worth any value, the (1965) mustang and the truck (1977 Suburban) have loans leaned against them - (We took out a loan against the mustang to get the new engine for the Truck, then we took out a loan against the truck to get the mustang worked on ).

We did purchase stove, refrigerator and TV from Sears during the past years (These three major appliances went during a three month period).

The computer is on my father-in-laws credit, so that will not be affected - I think.

So if we declare bankruptcy, or he does, with all that stuff, will they want it back or what?

Will the Loan on the Truck and Mustang be called in and the truck and car taken?

Anything you can tell me would be helpful.

Thanks

David

Filing for bankruptcy is rather easy and stress free. You will need to look up all of your bills and take them to a lawyer. This may cost anywhere from 300 to 900 dollars though. In my state if you are broke and have health problems you can get legal aid for little or nothing. Here is a website all about California Bankruptcy laws. By the way, when I filed chapter 7 in 1998 it took 3 months.

CA bankruptcy laws etc.

You can not file bankruptcy over rent, utilities or something that is not in your name. (you filing isn't an issue) A bank can not repossess something in someone else's name.


If your partner is not up to date on his payments and then files for bankruptcy, his cars will be repossessed. They are not going to let him write off the debt, not be current and keep the cars for free. If that was the case then EVERYONE would just buy a car and file bankruptcy. You can't write off a student loan or taxes.

Bankruptcy laws are getting a lot tougher. Your partner can file bankruptcy but he still may have to pay it off.

IMHO:

I think there has to be another way than to file bankruptcy over appliances and two loans that are in his name.

Call a financial advisor who can help you. There is free legal advice.