There are several different types of bankruptcy that allow you to get out of debt you’ve incurred in San Diego through multiple discharges that grant a fresh financial start. However, different bankruptcies are suited for different financial situations, and in order to receive the best possible relief from your debt you have to choose the most adequate bankruptcy for your particular case. There are three most common bankruptcy types that individuals can file.
What are the common types of bankruptcy I can file?
When you decide to file for bankruptcy and start preparing for the process, the first thing you should learn more about is the category of bankruptcy you should file. This is vital if you want to receive the discharge of debt you need and begin your financial recovery properly. Here are the three forms of bankruptcy most individuals choose between.
Chapter 7 bankruptcy tends to be the ideal option for individuals who have few assets and low income. Also, this is the most popular type of bankruptcy, with over 60% of all bankruptcy cases being under Chapter 7. This bankruptcy grants you an opportunity to stop repaying unsecured debts and keep possession of all your exempt assets. On the other hand, you will have to sell your non-exempt assets to repay the remainder of your debt.
Exempt property can include equity in your home, car, or work equipment, as well as retirement savings, veteran’s benefits, pension, and social security checks. You will most likely get to keep all these assets. Non-exempt property in Chapter 7 includes your second home or car, valuable stamp or coin collections, stock investments, bank accounts, and your excess cash. These assets will be liquidated and used to repay all or a portion of your debt.
Chapter 13 is another popular form of bankruptcy, as it makes up over 35% of all bankruptcy cases individuals file. This bankruptcy requires you to pay off a portion of your debt in order to have the remainder of your debt completely wiped out. This is the best option for people who either have a high income and cannot qualify for Chapter 7, or do not want to give up their non-exempt assets to repay their debt.
In order to be granted Chapter 13 bankruptcy, you have to formulate a repayment plan over the next three to five years years and submit that plan during your bankruptcy process. If the court accepts your plan, you will receive relief from repaying the rest of your debt. However, you should know that most people fail to successfully complete their repayment plan, which leads to failure to qualify for Chapter 13.
This form of bankruptcy is most commonly filed by businesses so they could remain open while they attempt to restructure their debt. However, individuals can also file this chapter if they fail to qualify for Chapter 7 or Chapter 13, or if they want to reorganize their real estate. However, this is the most complicated bankruptcy to file, which is why it’s very rare among individuals.
Which bankruptcy lawyers can help me get out of debt in San Diego?
Filing bankruptcy is a complex process that requires knowledge about various key aspects of it. Besides being familiar with the different forms of bankruptcy, you should also learn more about the process of filing, as well as the steps to take before filing your bankruptcy claim. Finally, you should adequately prepare for your bankruptcy process in order to maximize its benefits for your financial situation. Only once you’ve gathered all the necessary information on the various aspects of your claim should you proceed with the process.
However, it can be difficult to file a successful bankruptcy claim without help from experienced legal professionals. That’s why you should contact the Bankruptcy Law Offices of Mark L. Miller and allow us to handle your case. We have years of experience with different types of bankruptcy cases and we are certain we’ll be able to help you out. Our team of expert attorneys will handle all the aspects of your claim and ensure success. Our offices are located near Presidio Park, and you will easily find them for your free consultation. Contact us today!