Expert: Mark J. Markus- California Bankruptcy Attorney - 2/19/2010

Question
I'm at the point where I can no longer afford my RV payment, credit card payments, and rent/household bills.  I've made the decision that it is more important to have a roof over my head and food on the table for my family.  I have not missed any payments yet but I'm not going to be able to make my RV payment due tomorrow or there after.  I know eventually I will be sent to collections and my RV will be repossessed.  At what point should I contact a BK lawyer to file Chapter 7?  My goal will be to eliminate my RV debt/loan, credit card debt, and keep my car loan.  I'm trying to understand when to file, before I go to collections or when I'm in collections?  Some people I've talked to have said to wait until the creditors are calling.  Please help me understand.  

I'm located in California and have about $15,000 in credit card debt and don't know how much I will be left with on the RV after they repo it and auction it.

Answer
It doesn't really matter whether you file before, during or after.  The key question is your eligibility, and that can change month to month.  The other issue is that if you wait for them to get a judgment against you, they could garnish your wages or get a lien against your home, or seize money in your bank accounts, so you definitely don't want to wait that long.

If you would like a consultation, please go to http://www.bklaw.com/consult/ and follow the instructions there to prepare for and schedule an appointment.