Montecito, CA Bankruptcy Law Firms & Lawyers

Cases like this generally involve fact questions as to whether things were gifts, conditional gifts, loans, etc. If substantial sums are at stake, consult an attorney. Otherwise, try to reach some agreement and document it.

I wish you had provided me with some useful information such as how much your debt adds up to, when you last used credit, and how much you have available after covering necessary living expenses, to allocate towards paying your debts. As a general rule, cashing out your protected 401K to pay debts is usually a very bad idea, because you will pay a sizable tax penalty to do this.

If you have loans that you cannot pay, you may be eligible to obtain relief under the Bankruptcy Code. You should consult with an attorney to evaluate your individual situation in full to see if bankruptcy is the appropriate solution for you. You will want to consider how much debt you have in general, your income and expenses, and your assets, among other factors.