Is Bankruptcy Right for Me?
Chula Vista Bankruptcy Lawyer
Considering bankruptcy as an option to your financial troubles is an important
decision to make. Filing for bankruptcy can greatly affect your current
lifestyle which is why it is important to contact an experienced
Chula Vista bankruptcy lawyer to discuss your specific situation and provide solutions best suited to
your needs. Below our attorney discusses aspects of
Chapter 7 and
Chapter 13 bankruptcy you may want to consider before filing. Read on for more information
regarding whether or not bankruptcy is right for you.
First Steps
Before you file a bankruptcy case, you should compile a list of the types
of debt you have. Define and set financial goals you would like to achieve
by filing for bankruptcy. Remember, bankruptcy does not necessarily absolve
you of all your debts. There are some debts known as priority debts that
bankruptcy does not protect you from paying.
Common priority debts include:
- Alimony/Maintenance
- Child support
- Income taxes due within a three-year period
- Debts up to $2,775 in deposits made for purchase, lease, or rental of property.
Chapter 7 vs. Chapter 13 Bankruptcy
Two types of bankruptcies Chapter 7 and Chapter 13 have different eligibility
requirements. In order to qualify for Chapter 7 bankruptcy, you must be
able to pass a means test. Chapter 13 bankruptcy requires your debts to
not exceed a certain amount.
Are you being sued?
When you fail to make the required payments on your debts, a creditor has
the ability to take you to court in order to recover their money. If you
are unable to pay you debt back, you could face wage garnishment, frozen
bank accounts, or liens on your assets. When you file for bankruptcy,
a stay is placed on all collection actions by creditors including any
pending lawsuits.
Property Repossession and Foreclosure
If your
home is in danger of being foreclosed or your car is in danger of being repossessed, bankruptcy’s
automatic stop on all pending collection actions could temporarily delay
foreclosure or repossession.
If you decide to file for Chapter 13 bankruptcy, that process could allow
you to catch up on any missed payments, reduce the balance of your loan
and eliminate any unsecured junior liens on your home.
To learn more about whether or not bankruptcy is the right decision for
your financial situation, you should contact a skilled
Chula Vista bankruptcy lawyer. At Denton Law Firm, we have over 25 years of experience handling Chapter
7, Chapter 11, and Chapter 13 matters.
Let’s build your financial plan together. Call to
schedule a complimentary consultation today.