Bankruptcy Basics
Bankruptcy is a legal vehicle that provides relief to individuals and businesses in San Diego and elsewhere who are in serious financial trouble and protects their creditors to every extent possible. Generally, the bankruptcy process assesses the debtor’s assets and liabilities and provides a structure within which the debtor is allowed to keep some property and is ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud, and most tax debt.
- Do you owe more than you can pay?
- Are you are having trouble paying credit card, medical, or other bills?
- Is a lender threatening to foreclose on your home or other real property?
- Are you are behind on your car payments?
- Are creditors phoning, dunning, threatening or suing you?
- Do you need to stay creditors from taking action against you?
- Do you need to discharge debts?
Qualifying for Chapter 7 Bankruptcy
A Chapter 7 Bankruptcy provides the debtor with a full discharge of most consumer debts. If an individual in San Diego is considering filing bankruptcy and is qualified for a Chapter 7 bankruptcy, then in the vast majority of cases, a Chapter 7 filing with the help of a bankruptcy lawyer will provide the debtor with more relief than they will receive from a Chapter 13 or Chapter 11 filing.
As bankruptcy lawyers in San Diego, there are three critical elements that we look at when doing a preliminary examination of an individual’s qualifications for a Chapter 7 bankruptcy. First, an individual is ineligible for a Chapter 7 Bankruptcy if they have received a discharge within the last eight years. Second, a bankruptcy lawyer will look at the individual’s gross household income. The state does not want to grant a full discharge to individuals that they deem may have the ability to pay back some or all of their debts. Finally, the bankruptcy attorney looks at the individual’s assets. If the individual has substantial assets that are unencumbered by loans, then the state may decide to sell some of those assets to pay off a portion of the individual’s creditors.
There are circumstances where individuals may qualify for a Chapter 7 bankruptcy, but still choose to file a Chapter 13 or a Chapter 11 case. Those circumstances generally involve people who own real property and are petitioning the court to assist them in saving their home. The services of a San Diego bankruptcy lawyer is critical in this process.
Our Simple Fee Structure for Most Chapter 7 Bankruptcy Cases
San Diego bankruptcy attorneys fees for most Chapter 7, no asset, individual cases are only $800! In addition, there are $400 in filing fees, credit counseling, and a credit report. The total for a simple Chapter 7 case is $1200.
Exceptions do apply! Joint petitions, business bankruptcies, and reaffirmation agreements will add to the cost of filing. As your bankruptcy attorneys, we will do our best to assess and give you final price during your initial FREE consultation.
Individuals consider a Chapter 13 Bankruptcy for two reasons. First, if an individual is unable to pay all their creditors, but cannot qualify for a Chapter 7 bankruptcy, then they must file a Chapter 13 or a Chapter 11 bankruptcy. Second, if an individual is looking for options to try and save their home, a Chapter 13 or Chapter 11 bankruptcy may be the right approach. Only an experienced bankruptcy lawyer can help you determine which choice is appropriate for you.
