Filing bankruptcy san diego

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.

do i need to file bankruptcyDo you need bankruptcy ? How do you know when to file?

 

 First of all there are no easy answers , but you probably know that…. Are creditors constantly calling you? Does the thought of opening your mail  stress you out? Are you worried that utilities may be shut off or your car repossessed? Do you lie awake at night because you’re afraid of losing your home? Have you already dipped into savings or, worse, your retirement funds just to pay bills and buy groceries? These are all signs that you might be eligible to file bankruptcy  .

Now, probably more than at any other time in the last fifty years, people are having financial trouble because of events beyond their control, such as recession, layoffs and small business owners suffering acute drop-offs in sales. No one assumes anymore that the need to file bankruptcy is somehow a reflection of the moral character of the person filing. For centuries bankruptcy has been the ultimate relief valve for those in direst of straits. Americans seem pretty unanimous in continuing to believe that bankruptcy is a valid, valuable tool in our economy.  The choice of whether to seek bankruptcy relief is difficult and can be close to
heartbreaking. Many people experience shame and anxiety over filing bankruptcy.  they are sometimes afraid that filing bankruptcy makes them look irresponsible, or like people who don’t want to pay their bills. But the truth is that there is no shame in filing bankruptcy. Some people need bankruptcy, and bankruptcy  law exists to make sure that people having serious financial trouble can survive.

95% of the people who come to my office qualify to file bankruptcy. 

 This is what I have found in my over 20 years of practicing bankruptcy law. By the time a person gets to seeing a  bankruptcy lawyer face to face it is bad. No no wants to come and see a lawyer about being eligible for bankruptcy .

One of the first things you might have done to discover if you are eligible to file bankruptcy is  an online means test.  Big mistake (… really

It is virtually impossible for a middle class person in San Diego with a home and maybe a job  to go online and have any clue if they are eligible to file bankruptcy. There are no easy spreadsheets or lists to help you figure this out.  The process usually takes me about an hour to go over all the issues and questions to really understand are you eligible for bankruptcy. In my practice,we have had  many people who file Chapter 7 who were making a salary of $100,000.00 per year. You might ask, how is that possible?  

There are as many variables to the computation in who and how a person can file for bankruptcy, as choices of cereal at the local grocery store. How much do you owe? How close you are to retirement? Who lives with you? What is your house really worth in San Diego? Who knows that these days? It really does take a professional to figure this out.

One of my practices specialties is taking people who didn’t think they qualified for bankruptcy(or sometimes other lawyers who told it was not possible )and making that happen. Then they can move on with their lives. I am good with the difficult situations,that others can’t seem to figure out. So, if you think it is just not possible to file bankruptcy, or you make too much money or aren’t sure if you qualify. Come down to the office and let’s talk.

San Diego bankruptcy lawyers:

 Is it time file bankruptcy?

With the pressures of the recent economic recession, many individuals have found themselves buried under a mountain of debt. Even though they may have been careful about their finances, job losses, real estate losses and other problems may have contributed to the increasing debt that they cannot hope to pay. San Diego bankruptcy lawyers can advise you on the best way to deal with the issue of overwhelming debt, so that you can resume a health financial strategy for the future.san diego bankruptcy lawyers

 5 Signs You are in Financial Trouble

An overload of debt can happen to anyone. Divorce, medical bills, employment layoffs and business reverses can suddenly turn into sleepless nights worrying about the amount of money you owe. If you experience any of the following signs, it might be time to think about your financial options:
You are living on credit cards and increasing your debt each month You  can’t make the minimum payments on credit cards.
You can’t pay your mortgage or are in foreclosure.
You are using your retirement funds to pay bills.
You can’t save any money.
You have  exhausted family resources for loans.

How Bankruptcy Proceedings Can Help

Bankruptcy can help people overwhelmed by their debts in a number of ways:

  •  It can stop harassment by collection agencies and creditors.
  •  It can stop a creditor from repossessing your car or taking away your credit card.
  •  It can remove the liens from your property.
  •  It can stop a financial institution from foreclosing on your mortgage.
  •  It can help you to keep certain property.

 

Bankruptcy Cannot Solve Every Financial Problem

However, filing for bankruptcy cannot solve every debt-related issue. For example, it cannot eliminate  every tax debt or student loan debt, in most cases. Bankruptcy cannot protect you from your obligations for child support or alimony. It cannot necessarily prevent a creditor of a debt secured by property from repossessing it. Different categories of bankruptcy are available, and each type addresses different types of indebtedness. San Diego bankruptcy lawyers can advise you on the types of debt a bankruptcy proceeding can eliminate

Consulting With Bankruptcy Lawyers

Your first step should be to meet with San Diego bankruptcy lawyers to discuss your needs. You will be asked to  list your current indebtedness and inform you about the different categories of debt that are considered in bankruptcy, such as secured debt, unsecured debt and priority. You will  also discuss the types of bankruptcy proceedings, such as Chapter 7 or Chapter 13, and how each type relates to your needs. You will know also inform you about the likely progress and timetable of the proceedings so that you can be prepared. If you are concerned about your debt load and your financial future, call the San Diego bankruptcy lawyers today to discuss how bankruptcy can help you. There are answers ,you just need to ask