Arizona

Do you owe $15,000+?

If so, Bankruptcy might be for you. It allows hard working Americans living in San Diego to take risk and not worry about losing their freedom.

In Ancient Greece, bankruptcy did not exist. If a man owed and could not pay, he and his wife, children or servants were forced into “debt slavery”, until the creditor made the money through their physical labour.

Watch the following video to learn how you can declare bankruptcy and rid yourself of your debt.

Bankruptcy is the when your debts are eliminated or reorganized.

  • Bankruptcy is a legal proceeding which results when a person is not able to pay his or her past-due bills.
  • The right to file for bankruptcy is in federal law and bankruptcy cases are handled in a federal court.
  • Filing for bankruptcy stops all of your creditors from seeking to collect debts from you and stops your income from being taken from you (garnished.)

It’s time to file for bankruptcy when you’re in the financial danger zone

If you find yourself thinking about any of the questions below, you may be in the financial danger zone. If that’s the case, it may be time to file for bankruptcy:

  • Do you not know the total amount of debts you owe?
  • Do you use credit cards to pay for necessities like food or gas?
  • Does the idea of sorting through your finances make you feel anxious, scared, or worried?
  • Do you make barely the minimum payments on your credit cards?
  • Do debt collectors consistently call you?
  • Are you thinking about debt consolidation?

There are two types of Bankruptcy: Liquidation (Ch.7) & Reorganization (Ch.13).

  1. Liquidation is where your assets can be taken and sold (or liquidated) to pay back your debt. Chapter 7 bankruptcy is filed under the “liquidation” category.
  2. Reorganization is when you have to make monthly payments over the span of three to five years in order to repay all or some of your debt. Chapter 11 and Chapter 13 bankruptcy is filed under the “reorganization” category.

‘Liquidation Bankruptcy’ results in seizure of property

With liquidation, you must give up property which is not “exempt” under the law, and your property is sold to pay those who you are in debt to. Chapter 7 bankruptcy consists of asset liquidation.

You qualify for Chapter 7 bankruptcy if:

Your income is less than the median of your state or if you pass the means test.
You can file if you are an individual or a business.

‘Reorganization Bankruptcy’ results in a lengthy payment plan

With reorganization bankruptcy, you file a “reorganization plan” showing how you will pay off some or all of of your past-due debts over a three to five year time span. Chapter 11, 12, and 13 bankruptcy are all classified as ‘reorganization’ bankruptcies.

You qualify for Chapter 13 bankruptcy if:

Your unsecured debt is below $383,175 and your secured debt is below $1,149,525.

Chapter 11 and Chapter 12 bankruptcy

Chapter 11 bankruptcy is for small businesses who are struggling with their debts.
Chapter 12 bankruptcy is for predominantly farmers or fishermen.

Do I get to keep any of my assets when I file for bankruptcy?

If you file chapter 7, you can keep all property which the law says is “exempt” from the claims of creditors and this varies from state to state. In a chapter 13 case, you can keep all of your property if your plan meets the requirements of the bankruptcy law. You will have to pay the mortgages or liens as if you hadn’t filed for bankruptcy.

There are exceptions which bankruptcy will not dismiss

The exceptions which bankruptcy will not dismiss include: child support or alimony, fines owed to government agencies, taxes, student loans, loans you got knowingly giving false information to creditors, debts from “willful and malicious” harm, debts from DUIs, and mortgages and liens.

There are 3 steps to Bankruptcy in San Diego: Planning, Filing & Discharge.

  1. Planning is when you prepare yourself to file for debt relief. You must receive credit counseling from an approved agency within four months prior your filing your bankruptcy case. You must have a certificate from the agency in order to file. List all of your debts and all of your assets. Gather all of your documents together – bills, proof of income, tax returns, bank statements, mortgage documents, credit card statements, etc.
  2. Filing is when you submit all of your documentation and creditors have to stop trying to collect money that you owe them. Your case will then be assigned to a bankruptcy trustee, who will oversee your case. The trustee will send notices to your creditors and schedule a hearing. Depending on the chapter you file, a conclusion will be met.
  3. Discharge is when the debtor is relieved from personal liability for specified types of debts. The debtor is no longer legally required to pay any debts that are discharged. The discharge prohibits the creditors from taking any form of collection action on discharged debts, including legal action and communications with the debtor such as telephone calls, letters, and in-person contact.

Important things NOT TO DO when planning to file for bankruptcy.

  1. DO NOT lie or hide any information from your attorney
  2. DO NOT continue using credit – no new accounts, don’t use your current credit accounts, and don’t transfer funds to different accounts
  3. DO NOT pay off your credit card accounts
  4. DO NOT pay off debts to your friends or family, creditors will be angry and your loved ones may get sued
  5. DO NOT transfer property to family, friends, a living trust, LLC, or corporation – this could create fraud charges against you

How much does filing for bankruptcy cost?

To file under chapter 7 bankruptcy, or litigation bankruptcy, you must pay $299 to file. To file under chapter 13 or reorganization bankruptcy, you must pay $274 to file. If you choose to hire an attorney in San Diego, you must pay the attorney fees you agree to.

You have options if you don’t have the money to file

  1. You can search for a pro bono attorney, as you may be able to get legal help for free.
  2. You may be able to file your case on your own, though this requires a bit of research. It is called a pro se filing and happens all the time if your case isn’t too complex.
  3. You could take your next paycheck, pay no bills or collectors and go directly to your attorney’s office to file.

After your bankruptcy you can immediately start rebuilding credit

Lenders are more likely to give you a loan or line of credit immediately after your bankruptcy because you’re guaranteed not to declare bankruptcy and, assuming you’ve “learned your lesson” you’re more likely to make the payments.

Will bankruptcy affect my job?

No employer can fire you because as a result to you filing for bankruptcy. Employer can not discriminate against you in other terms and conditions of employment  — for example, employers cannot reduce your salary, demote you, or take away and of your responsibilities as a result of filing for bankruptcy. 

Will bankruptcy affect future employment?

Bankruptcy will not affect your chances of being hired by federal, state, or local government, however there is no such rule for private employers. Some people find that their bankruptcy effects their chances when applying to jobs that require money handling such as bookkeeping, payroll, accounting, or banking. Many private employers may ask to conduct a credit check on job applicants and will see that you have filed for bankruptcy, however, if you do not consent to a credit check, you may be denied the position.
 

Attorney Profile:

John Doe, Esq.

Bankruptcy Lawyer since 1834
Graduated Harvard Law 1832

Phone: 1 (823) 456-7890
Email: john@doe.com

1234 Main St. Ste 200
San Diego, California 92101

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