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San Diego Bankruptcy Blogs from January, 2016


The burden of debt can create undue stress, and can impact nearly every area of your life in some way or another. For those struggling to gain control of their financial situation, bankruptcy can be an effective way to gain a fresh start. However, bankruptcy is not right for everyone. In this blog, we take a look at three things you should consider before pursuing bankruptcy.

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1. Which Option Is Better: Chapter 7 or Chapter 13?

Although they are both types of bankruptcy, Chapter 7 and Chapter 13 filings are actually very different. One is not inherently better than the other, although one option will typically be clearly preferential for your situation.

  • Chapter 7, also called liquidation bankruptcy, involves wiping out your debt without a repayment plan. It is typically the quickest and cheapest way to get rid of debt. This is what comes to mind when most people think of bankruptcy. You may not qualify for this if your income is too high, or too high relative to your debts.The sale of a Debtor's assets to repay creditors is exceedingly rare; however a thorough evaluation should be done by a competent bankruptcy attorney to make sure you qualify and all your assets can be protected with the specific exemptions applicable to your specific case. 
  • Chapter 13, on the other hand, is essentially a structured repayment plan based on how much of your debt you can afford to pay back each month. You can be required to pay back anywhere from very little, to all of your debts, depending on your specific circumstances. Chapter 13 but can help protect your assets while on the road to financial freedom. It can also allow you to get caught up on mortgage arrearages, car payments, taxes and a variety of other things. 

2. What Types of Debts Do You Have?

Many forms of debt can be discharged through Chapter 7 bankruptcy, but not all. While there are rare exceptions in some extreme cases, the following types of debt are almost never dischargeable:

  • Student loans
  • Spousal/child support debts
  • Debts from a divorce ruling
  • Court penalties and fines

There are a number of other types of debt which are typically non-dischargeable. For this reason, it is crucial to consult with an experienced San Diego bankruptcy attorney who can help you understand your options, and can help you make the best choice for you and your family.

3. Are You Capable of Paying Off Your Debts Without Bankruptcy?

You will actually be required to receive debt counseling from an approved agency before you are able to file bankruptcy. This process will usually help you prepare a budget, and can help you understand your ability to repay your debt on your own, without bankruptcy.

When you retain San Diego Legal Pros, our experienced team will take the time to learn about you and your unique situation. We will advise you of your options, and will help guide you through the steps to regain control of your financial future. In addition to being skilled San Diego bankruptcy attorneys, we also offer a wide range of other debt counseling and debt relief services.

Feeling trapped by debt? Call (888) 875-9190 today to learn how we can help

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