I just got sued for an unpaid credit card

The Law Offices of Fife & CestaBy Thomas Cesta

1811 S. Alma School Road, Suite 270Mesa, Arizona 85210Office: 480-850-6541

Q:I am also going through a divorce, my income has decreased, and I am trying to get a loan modification. This is so overwhelming, I do not know what to do. Can I discharge the credit card with a bankruptcy after I have already gotten the summons?

A: In most cases the answer is yes. Being served with the lawsuit, or even having a judgment issued will not prevent you from discharging the debt. But the divorce or “dissolution” proceeding raises several questions as well. Until the Court enters your dissolution, you and your soon to be ex can file a joint bankruptcy petition and pay one filing fee, and pay for one bankruptcy petition. After the dissolution is entered you will need to file two bankruptcy petitions to get a discharge of your debts. For example, if your dissolution orders you to pay the credit card, and you file a bankruptcy, the family law

The Law Offices of Fife & Cesta | 1811 S. Alma School Rd. Mesa Arizona 85210 | 480-850-6541 | http://fifecestalaw.com/

court can still hold you in contempt for failing to pay the credit card if your ex is now damaged in some way because of your failure to pay. But if you both file and get the debts, that can be, discharged, then your dissolution will be simpler because you will not have to worry about who must pay what.There are a lot of factors to consider regarding whether you can file bankruptcy, when to file, and what chapter bankruptcy to file. For example, if you have filed a prior chapter 7 bankruptcy, then you cannot get another chapter 7 discharge unless you file the new case eight or more years after the last case was filed. However, you could still file a chapter 13 case and get a discharge if the new case is filed four or more years later that the prior one. If it is filed in less time, you can still get the protection of the court, just not the discharge. And this may be all you need to give you the breathing room to recover.What chapter to file is also an important question. The two main types of bankruptcy filed by consumer debtors are chapter 7 and chapter 13. A chapter 7 is a liquidation case, which means that if you have any non-exempt assets, you can give these to the trustee to liquidate, or pay him to keep them. Most of

The Law Offices of Fife & Cesta | 1811 S. Alma School Rd. Mesa Arizona 85210 | 480-850-6541 | http://fifecestalaw.com/

your stuff will be exempt, and with proper planning all of it can be, so these cases are usually the least difficult. A chapter 13 case is a restructuring, which means you will have to make a regular payment, but the amount will be what you have left over after subtracting all of your expenses from your income, which also includes a recreation expense. Also, a Chapter 13 case can often result in a loan modification, so it may benefit you in that way.To bring this back to your original question, yes, you can file for bankruptcy after you have been served. And you do not want to wait to talk to our Mesa bankruptcy attorneys because the clock is now ticking on the judgment, as well as because your divorce is not yet final. You are more likely to both qualify for a chapter 7 discharge because of the two households if you file the bankruptcy before the divorce is final.Reposted from: I just got sued for an unpaid credit card.

The Law Offices of Fife & Cesta | 1811 S. Alma School Rd. Mesa Arizona 85210 | 480-850-6541 | http://fifecestalaw.com/