About Bankruptcy Law Attorneys In California
What is Bankruptcy?
Simply stated, bankruptcy is a legal procedure that allows those in financial distress to get out of debt and a get a fresh start. The bankruptcy procedure serves two primary purposes: 1) it allows an individual to get out of debt; and 2) it holds off creditors while individuals get out of debt.
There are Two Primary Types of Bankruptcy for San Diego Residents.
Most individuals will chose one of two types of bankruptcy procedures. The first is Chapter 7, where basically all debt is forgiven. If you qualify for Chapter 7, this is often the best bankruptcy option available. The second common type of bankruptcy procedure is Chapter 13, often referred to as debt reorganization or debt repayment plan. In this second type of procedure, some or all of an individual's debts are arranged into a single payment plan that the individual can afford. The interest rate on unsecured debt is frozen and often, the individual is required to repay only a portion of the unsecured debt. There were some recent changes in the bankruptcy laws that have made Chapter 13 a much more popular option over the last couple years.
People who file Chapter 7 or Chapter 13 bankruptcy may wish they had made different decisions along the way. However, mistakes that lead to greater regret include selling off assets and draining retirement accounts unnecessarily — or taking no action at all. Here are two key truths that refute the most common bankruptcy myths:
- You can file bankruptcy without giving up everything you own; many people keep their homes, vehicles, and most personal property.
- You can repair and rebuild your credit over time after filing bankruptcy — and filing today may not impact your credit rating significantly beyond where it is today.
Call a Lawyer at our San Diego, California law office at 619-819-8383 to Learn about Bankruptcy Basics and Discuss Your Specific Needs.
We are a San Diego, California debt relief agency. We are licensed attorneys helping people file for relief under the Bankruptcy Code
