Personal Bankruptcy in San Diego

If you are like thousands of other California residents who are unable to pay their medical bills, credit card bills or facing home foreclosure, a San Diego bankruptcy attorney might can help. San Diego debtors who have exhausted other financial options to regain their financial footing may be able to liquidate their assets by filing Chapter 7 bankruptcy or restructure their debt payments by filing Chapter 13 bankruptcy.

Many people want to know when it is the right time to file bankruptcy. Unfortunately, there is no right answer to that question, but a San Diego bankruptcy lawyer can answer questions about current bankruptcy laws and identify if you qualify for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Filing Chapter 7 Bankruptcy in San Diego

Filing Chapter 7 bankruptcy in San Diego can be an inexpensive, quick and simple way for San Diego residents to discharge their debts and start over financially. Chapter 7 bankruptcy is the most common type of bankruptcy filed. Filing Chapter 7 bankruptcy allows for the liquidation of a debtor’s non-exempt assets to repay their creditors. Many debtors do not have property or assets to liquidate and this type of bankruptcy is considered a “no-asset” bankruptcy case. Most Chapter 7 bankruptcy cases can discharge a debtor’s qualifying debt within four to six months after the bankruptcy petition is filed.

San Diego residents who are considering filing Chapter 7 bankruptcy in San Diego should contact a San Diego bankruptcy lawyer who can file the bankruptcy petition in the proper San Diego bankruptcy court. The bankruptcy petition will include a list of the debtor’s exempt and non-exempt assets, income, creditor’s information and debt. A bankruptcy trustee will be assigned to review the petition, meet with the creditors at the 341 Creditor’s meeting and sell the debtor’s assets to pay their creditors.

Filing Chapter 13 Bankruptcy in San Diego

Filing Chapter 13 bankruptcy in San Diego does not discharge an individual’s debt immediately but will allow for the debt to be repaid over 3 to 5 years with a repayment plan. Many times the repayment plan provides much more favorable repayment options. Filing Chapter 13 bankruptcy in San Diego may allow San Diego residents the option to stop a home foreclosure and keep their assets.

Only certain qualifying individuals will be able to file Chapter 13 bankruptcy in San Diego. To qualify, a debtor must have an income source that can be used to make payments for their repayment plan. Unsecured debts can not exceed $269,250 and secured debts can not exceed $807,750.

Personal Debts Not Eliminated By Filing Personal Bankruptcy

Certain debts are not discharged by filing Chapter 7 or Chapter 13 bankruptcy in San Diego. Federal bankruptcy laws outline the types of debt that are not discharged and because the bankruptcy laws are created at the federal level they will be the same for each state. If an individual files Chapter 7 bankruptcy or Chapter 13 bankruptcy in San Diego, the following debts will not be discharged.

• Most back taxes
• Child support and alimony payments
• Certain student loans
• Purchases of luxury items within ninety days of filing personal bankruptcy in San Diego
• Fines owed to federal or California government agencies
• Debts generated from fraudulent activity
• Recent cash advances of $825 within 70 days of filing personal bankruptcy