Learn about filing bankruptcy in San Diego
Chapter 7 vs Chapter 13
What is Bankruptcy? Bankruptcy is a legal petition filed in federal court which you may seek a discharge of a debt when you can’t pay your bills. There are two main bankruptcies for individuals: Chapter 7 and Chapter 13. Most people who are considering filing bankruptcy in San Diego are middle class . They own homes and usually have jobs but, not always. Without talking to a bankruptcy lawyer is is impossible to know if you qualify for Chapter 7 or Chapter 13
Here are the basics of a bankruptcy filing in San Diego:Chapter 7 vs Chapter 13 .
When Should I consider filing Bankruptcy in San Diego ? You should consider filing bankruptcy when you cannot pay your bills or when a particular crisis, such as an illness, accident or loss of employment makes the future payment of your bills very unlikely. Also, if a judgment is handed against you, a bankruptcy may be used to stop the creditor from attaching your assets or wages.
Can bankruptcy stop the collection of tax ?
Taxes are normally given priority and are difficult to erase.As a general rule, if you have an income tax debt that is at least three years old, and you filed your tax returns on time for the year in question, you may be able to discharge all such taxes in a Chapter 7 proceeding. In a Chapter 13, however, that tax debt would be paid in the same way as any other unsecured creditor (i.e., repaid over three years). Payroll taxes (i.e. taxes you failed to withhold from your employees’ pay or withheld and did not pay the appropriate government agency) are generally not dis-chargeable.Bankruptcy will initially stop the collection process but may not eliminate the obligation to pay the taxes. Does a Bankruptcy affect my credit? Yes. Future lenders may consider your bankruptcy when they are deciding whether to loan you money or credit. However, certain laws exist to prevent unlawful discrimination against you just because you filed for bankruptcy. The fact that you have filed for bankruptcy may be carried on your credit records for ten years.
Chapter 7 vs Chapter 13 If I choose Chapter 7 liquidation, do I lose all my assets?
No. Bankruptcy law lets individual debtors keep certain property that is not subject to attachment and execution under state law. These assets include some or all of the debtor’s equity in his or her home, household goods, a car, 401k retirement plans and numerous other assets. Chapter 7 bankruptcy may enable you to get rid of all your unsecured debts. In most cases, if you have barely enough to live on, not counting payment of your credit card (and other unsecured) debts, you can make all of your credit card debts go away. If, however, when you look at your monthly budget you have a significant amount of cash left over without paying your credit card (unsecured) debts, you will not be permitted to proceed with a Chapter 7 bankruptcy. Instead, you will be required to file a Chapter 13, also alternatively described as a “debt consolidation” or wage earner bankruptcy. In a Chapter 13 proceeding, the court will require you to pay, usually for three years, all of your disposable income to the bankruptcy trustee, who will in turn pay your creditors. The amount of your monthly payment to the trustee will be approximately equal to the amount of the cash you ordinarily have on hand after you pay your basic necessary living expenses. In many cases, you will not have to pay back everything that you owe. For instance, if you have $100,000.00 in unsecured debt, but you only have $500.00 per month of income available to pay the creditors, your unsecured creditors may receive a total of only $18,000.00 over a period of three years (that’s $500.00 multiplied by thirty-six months)
What is the cost to file a Bankruptcy in San Diego court : Chapter 7 vs Chapter 13 ?
In a Chapter 7, generally your attorney’s fees must be paid up front before the filing. This makes sense because in a Chapter 7 proceeding a promise made before filing the case to pay attorney’s fees after filing makes the promise dischargeable, too. In a Chapter 13, your attorney’s fees can be paid either before the filing or as part of the repayment plan. For Chapter 13 cases, the installment payment plan is the preferred choice of most clients since it requires less up-front cash.The filing costs differ based upon the Chapter of the Bankruptcy you file. Currently, fees are $306.00 for a Chapter 7 and $281.00 for a Chapter 13.
How long does a Bankruptcy take In San Diego : Chapter 7 vs Chapter 13?
Do I have to attend a Hearing? Chapter 7 bankruptcies require you to attend a meeting of creditors. If no objections are filed, the discharge can be entered in approximately 90 days. Chapter 13 bankruptcies take 48 months and may involve a number of hearings over an extended period with both the trustee and the court.
Where do I file bankruptcy in San Diego
In the federal bankruptcy district where you have lived for the past 180 days. If you have not lived in your current District for 180 days, you may file in the district in which you most recently resided for one hundred eighty days or you can take your chances filing where you now live. If you are finally tired for the bill collectors and the stress,Call me 619-235-4095 we can talk.