San Diego Bankruptcy Lawyer
Solutions for Difficult Financial Situations
In today’s economy, many individuals and families have been left in financial distress. If you are struggling without a way to reduce your debt, an experienced bankruptcy attorney in San Diego can advise you of your options.
At Embry Family Law P.C., we help clients find relief from overwhelming debt through bankruptcy. We offer assistance with Chapter 7 and Chapter 13 bankruptcies.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, known as liquidation, allows you to eliminate debt and get a fresh start. This type of bankruptcy is often a good choice for people with significant credit card bills and other unsecured debt and few assets. Any property that is not exempt can be sold to pay your creditors. However, there are many exemptions that can be claimed to protect your property.
Debt that cannot be discharged in Chapter 7 bankruptcy includes:
- Student loans
- Child support
- Certain taxes
- Fraudulent debts
- Certain items charged
Chapter 7 is the fastest type of bankruptcy, and most cases are discharged within 90 days of filing. Our San Diego bankruptcy attorney can assess your financial situation and analyze how the exemptions work for you to determine if this type of bankruptcy is the best option.
Chapter 13 Bankruptcy
When your goal is to restructure your debt and keep your property, Chapter 13 may be the best type of bankruptcy for you. With repayment plans that typically last three to five years, the process is not as fast as Chapter 7. At the end of this period of time, remaining balances are discharged.
Why is Bankruptcy Important?
Americans learn almost from birth that it’s good to buy goods and services. Through advertising, a highly paid army of persuaders surrounds us with thousands of seductive messages each day that all say “buy, buy, buy.” Easily available credit makes living beyond one’s means easy. If for some reason, such as illness, loss of work, or just plain bad planning, our ability to pay for the goods or services we need is interrupted, fear and guilt are often our first feelings. We sometimes believe that if we fail to pay for our debts right on time that we are deadbeats. We may even feel that we’ve failed as human beings.
NONSENSE! There’s a lot more to life than an A+ credit rating, and lots of better things to feel guilty about than the failure to pay for a snowmobile or a summer vacation right on time. The fact that the American economy is based on consumer debt should not be forgotten. Nor should the fact that $50 billion has been spent nationally for bailout of poorly run financial institutions. Keeping those facts in mind, you really shouldn’t feel too guilt-ridden about the debts you’ve run up.
In fact, large creditors expect defaults and bankruptcies and treat them as a cost of doing business.
Fortunately, it has been recognized that debts can get the better of even the most conscientious among us. From Old Testament times to the present, society has discouraged debtors from falling on their swords and provided sensible ways for debt-oppressed people to start new economic lives. Today, this is done through bankruptcy.
Bankruptcy is a truly worthy part of our legal system. It helps keep families together, reduces suicide, and keeps the homeless problem from growing even larger. One of the major benefits of bankruptcy is that many creditor actions are stayed — debt collections efforts must stop and foreclosure is halted. Of course the primary benefit is the discharge of past debts that are weighing you down, giving you a fresh start and the opportunity to resume status as a productive member of society.
Bankruptcy Can Offer a Renewed Outlook
If you suddenly find yourself without a job, socked with huge, unexpected medical bills you can’t pay, or are simply snowed under by an impossible debt burden, bankruptcy provides a chance for a fresh start and a renewed positive outlook on life. There is immense personal relief in being relieved of the burden of working to pay for yesterday’s expense instead of living for today and planning for the future.
Although a bankruptcy filing remains on your credit record for up to ten years, many creditors disregard bankruptcy after five years. In a short time, you can probably rebuild your credit to the point that you won’t be turned down for a major credit card or loan. You may be also able to obtain a mortgage loan after a year or so. Most major creditors look for steady employment and an ability to repay. I
f you can establish a history of making and paying for purchases on credit since bankruptcy, you are well on your way to rebuilding your credit rating. Ways to establish credit include getting a secured credit card (line of credit is based on amount of money on deposit in savings account), taking out a loan with a relative or friend as cosigner, and setting up a payment schedule for purchase of items with a local merchant (i.e. jewelry, furniture, or appliance store).
Consult with Embry Family Law P.C.
Because each situation is unique, it is important to seek advice from an experienced bankruptcy attorney to determine the best type of bankruptcy to resolve your financial difficulty and help you achieve your goals. At Embry Family Law P.C., we want to help you get the fresh start you deserve.