Expert: Mark J. Markus- California Bankruptcy Attorney - 11/1/2008

Question
First, a sincere thanks.  I'm not sure where to begin.  My mom (roughly 72 years of age) got into one of those horrible ARMs with negative amortization about 3 years ago (payments are current).  That loan is about to end (needs to be paid or refinanced in a three or four months).  The total amount owed on the loan is about 550K - house is worth 400K at best.  I really think there's something fishy about that loan - I don't think she could have qualified and the mortgage broker who initially got the loan is now out of business.

She has about 40K in unsecured debt (credit cards).

There are no car loans, but she owns 5 cars (actually, she uses one - the others cars were purchased for individuals because she had good credit (the cars are in her name).

Income from all sources is below 50K (actually, it might fall below 30K depending on how some business expenses are classified (she owns a business).

Our primary goal is to keep the house and just bring everything down to a manageable level - or perhaps liquidate some of those debts.

I have my own bills, but would be willing to help my mom out if we could rearrange everything.

Now - is Bankruptcy an option?  Which one?  Should we first try to renegotiate with all these creditors?

Thanks for your help.  We reside in Los Angeles, California.  

Answer
The only way to answer your questions is to have a comprehensive consultation and go over her entire situation to assess her options.  If she would like to schedule an appointment, please have her visit http://www.bklaw.com/consult/ and complete the 5 steps there to schedule an appointment.