Filing for bankruptcy is a life-saving remedy for individuals who find themselves in serious financial trouble. A successful bankruptcy can do a lot for you, such as stop collection actions against you, eliminate the majority of your debt, and a lot more. Of course, you should hire an experienced bankruptcy lawyer from Clairemont Mesa to help you, but you should also learn more about the incredible benefits you can expect from choosing to file bankruptcy.

What can bankruptcy do for me?

Bankruptcy puts a stop to your financial freefall and allows you to get your finances in order, ensure a positive outcome for the future, and gets you back on your feet with a positive outlook on life. However, that’s speaking generally, and you should know precisely what it is you can expect to get from successfully filing your bankruptcy.

Prevent creditor harassment

As soon as you file bankruptcy, the court puts automatic stay in place immediately. This prevents creditors from calling you, puts a stop to all wage garnishments, and eliminates most lawsuits. This will give you the necessary peace of mind and make it easier to properly continue your bankruptcy process.

Stop eviction, foreclosure, and repossession

What’s more, automatic stay also puts a stop to the following actions if they’re pending or in the middle of completion:

  • Eviction: Once you file bankruptcy, eviction comes to a complete halt.
  • Repossession and foreclosure: Automatic stay also puts an immediate stop on all foreclosure and repossession efforts made against you, but you won’t be able to keep your property unless getting current with your account.

Eliminate credit card debt & unsecured debt

Bankruptcy is excellent at wiping out the majority of your unsecured debts. This includes gym contracts, personal loans, utility payments, medical bills, and other credit card debt. In fact, bankruptcy can wipe out virtually all non-priority unsecured loans, apart from school loans.

Eliminate secured debt

Bankruptcy can also wipe out some of your secured debt if you’re unable to keep making payments on a debt you secured with a collateral, such as your car loan or your mortgage.

What can only Chapter 13 do?

Chapter 7 bankruptcy is the best choice for a majority of individuals in the United States. However, depending on your exact financial situation, Chapter 13 may be the preferable option due to its unique set of advantages. Let’s explore what it is only Chapter 13 bankruptcy can help you with.

Stop mortgage foreclosure

With Chapter 13, you can completely stop your foreclosure from moving forward and force your lenders to accept a repayment plan approved by the court. This reorganization plan allows you to restructure your debts if you prove you have sufficient income to continue paying them back through a single monthly installment.

“Cramdown” your secured debt

Chapter 13 has a mechanism that allows debtors to reduce their obligations towards replacement value of the property they have securing their debt. For example, if your current car loan debt for a vehicle that is worth $5,000 is $10,000, you can create a plan to pay off only $6,000, or the actual value of the vehicle. This is one of the biggest advantages of Chapter 13.

Who are the most reputable bankruptcy lawyers in Clairemont Mesa?

Besides knowing what bankruptcy can do for you, you should also be familiar with other essential details about bankruptcy. First, learn more about the 341 meeting and how to prepare for it. Then, take a moment to find out how you can convert from Chapter 7 to Chapter 13, just in case. Finally, you need to know how bankruptcy can help you with any existing lawsuits you have against you. However, you should also find legal representation.

This is where Chang & Diamond come in. They are the leading experts in different types of bankruptcy in San Diego and all its communities, including Clairemont Mesa. They have the knowledge and the expertise to help you ensure a favorable bankruptcy. Come in for a free consultation, tell us what worries you, and we’ll help you enjoy Tecolote Canyon National Park and Nature Center with a clear head again. Reach out to us today!