3 Common Means Test Mistakes

Taking the means test is the common starting point for the two most common types of bankruptcies individuals file. However, it’s also the place where most people make mistakes, negatively affecting their chances of a successful process. The best way to avoid the common pitfalls is to hire renowned bankruptcy lawyers in Rancho Bernardo, CA and allow them to help you. However, it doesn’t’ hurt to learn more about the mistakes either. 

What mistakes should I avoid making on my means test?

All the details concerning the means test and properly passing it can quickly get very complicated and very confusing for the uninitiated individuals. That’s why it’s important to learn more about the most common mistakes people make with the means test when filing bankruptcy and knowing how to avoid them: 

Wrong household size3 Common Means Test Mistakes 

One of the requirements within the means test is to state the correct size of your household. However, this is also the single most common mistake the majority of applicants make when attempting to complete their means test. 

The size of your household has a significant effect on the results of your means test, as this determines the median household income as well as the amount of deductions you’ll receive for your housing expenses. 

To prevent this mistake from occurring it’s a good idea to first determine whether the residents within your household are financially dependent on yourself. For example, if you have a grandmother living with you and doesn’t pay for rent, they’re a household member since you’re essentially providing for her as well. However, a cousin using your spare room and paying rent isn’t a household member. 

Inaccurate income

The income you state in your means test is extremely important since it determines the eligibility for different bankruptcy chapters. This is why you have to ensure that you’re stating your correct income and that it precisely matches the income documentation you’re submitting within your means test. Take the time to go over your documentation for the prior six months and use your tax returns as income reference. However, also note that you don’t have to include all of your income in your means test, so be careful to properly examine the rules. 

Finally, make sure to list only the income you’re receiving and not one you’re not. For example, if you’re not currently receiving child support you should, you won’t list it as an income on your means test. The same goes for your expenses – you cannot list spousal or child support if you’re not paying it. 

Improper deductions

Finally, make sure to pay attention to properly listing your deductible and nondeductible expenses. For example, college expenses for your children, 401K, retirement savings contributions, and 401K loan repayments are examples of nondeductible expenses. On the other hand, expenses regarding your own education are deductible. This is another important aspect to pay attention to when filling out your means test. 

Which dedicated bankruptcy lawyers in Rancho Bernardo CA can help with my means test?

Which dedicated bankruptcy lawyers in Rancho Bernardo CA can help with my means test

Passing your means test is one of the most important aspects of filing for bankruptcy, whether you decide to file Chapter 7 or Chapter 13 bankruptcy. However, knowing which mistakes to avoid on your means test should not be your sole focus of preparation. You also need to pay attention to the different types of debts bankruptcy can help you with as soon as you become aware of the first signs it’s time for you to file bankruptcy

There’s still one more crucial step though, and that’s hiring reputable bankruptcy attorneys to help you through it all. Lucky for you, you can always rely on Chang & Diamond, the leaders in bankruptcy law across San Diego and other nearby areas, inducing Rancho Bernardo. We’re here to provide expert counsel and representation through all the stages of your bankruptcy process. Reach out to us today and ensure a smooth transition.

3 Different Types of Debt in Bankruptcy

Facing bankruptcy can be a frightening experience for most individuals, although there’s no reason for it to be. Bankruptcy represents a fresh financial start and you should do your best to look at it like that. However, before you hire an expert bankruptcy lawyer in Rancho Bernardo, why not do some preliminary research on your own and get familiar with the different types of debt bankruptcy chapters recognize and go into your consultation prepared?

What are the different debts in bankruptcy?

Generally, all types of debt bankruptcy recognizes fall into one of three categories – non-priority unsecured debt, priority unsecured debt, and secured debt. Determining the difference between these debts in bankruptcy can be very difficult, which is why we’ve prepared a detailed overview of these debts with examples that will help you better understand each category: 

Secured debt

This refers to debt backed by collateral that the creditor has the legal right to take in case you don’t pay your debt. Having a lien against a piece of property you own is a type of secured debt. 

Also, it’s worth noting that there are voluntary and involuntary liens. A voluntary lien is one against your car or a property you own while continually paying for it, while an involuntary lien goes into effect after a creditor sues you and places a lien on your property. 

The most common examples of secured debt include: 

  • Civil lawsuit judgment liens
  • Tax liens on real estate
  • Personal loans that have collateral
  • Car loans
  • Home mortgages 

Because every secured debt has a piece of your property backing it, you have to repay those types of debts in order to retain possession of the property attached to the specific debt. However, it is possible to avoid paying some involuntary liens in a bankruptcy.  You need to talk to a qualified bankruptcy attorney if you have involuntary liens. Generally, in Chapter 7 you have to remain current on debt repayments to keep possession of your property, while in Chapter 13 you’ll continue making payments and protecting your property from foreclosure by following the details of said plan. 

Priority unsecured debt

3 Different Types of Debt in Bankruptcy

Similarly to secured debt, you have to pay off all your priority unsecured debt to your creditors although they’re not secured by a collateral. This commonly refers to debts you have toward the government and they most commonly include: 

  • Taxes
  • Spousal or child support
  • Criminal fines
  • Government benefit repayment

In a Chapter 13 bankruptcy, you continue paying these types of debts through your repayment plan. In Chapter 7, the priority unsecured debts survive bankruptcy and are not discharged.

Non-priority unsecured debt

Finally, non-priority unsecured debts are those types of debt that you’ll be able to fully discharge either through Chapter 7 or Chapter 13 bankruptcies. Once your bankruptcy procedure is done, you’ll owe none of your non-priority unsecured debts to your creditors. The most common debts that fall into this category are: 

  • Medical bills
  • Credit cards
  • Past due utility bills
  • Personal loans that don’t have collateral

Which expert bankruptcy lawyer in Rancho Bernardo should I hire?

Which expert bankruptcy lawyer in Rancho Bernardo should I hire

It’s important to explore all the different types of debt bankruptcy recognizes to better get ready for your process of filing. It’s important to start preparing to file for bankruptcy as soon as you notice the first signs of financial trouble. From there, all that’s left is to adequately choose between filing Chapter 13 or Chapter 7 bankruptcy and focus your attention on passing the means test. However, don’t forget to hire professional legal counsel to make all of it easier. 

Chang & Diamond are here to make your process of filing for bankruptcy smooth and seamless. We’re one of the leading experts in different types of bankruptcy and we’ll grant you all the assistance you require. From filing your claim to representing your case in creditor meetings and in front of the court, you can rely on us. The sooner you contact us the sooner you’ll be able to enjoy Lake Hodges once again. Give us a call today!

Chapter 7 or Chapter 13: Which One Is for You?

Should I file Chapter 7 or Chapter 13 bankruptcyDeciding to file for bankruptcy is a great decision if you’re finding yourself in serious financial trouble. Bankruptcy frees you from much of your debt, grants you the opportunity to pay off the remainder of your debt, and gives you a chance to start over fresh. However, when the time comes to hire experienced bankruptcy attorneys in Rancho Bernardo, CA, you’re faced with a choice between Chapter 7 and Chapter 13.

Should I file Chapter 7 or Chapter 13 bankruptcy?

There are numerous differences between Chapter 7 and Chapter 13 bankruptcy, so it can be very difficult to actually choose the best type for your particular situation. That’s why it’s best to get as much information about both of these forms of bankruptcy before you make the decision regarding your future.

To make it easier for yourself to choose, it’s best to explore the basic characteristics of both these forms of bankruptcy across different categories and perform an in-depth analysis and comparison before choosing. Here are the most important features of these two distinct types of bankruptcy:

Characteristics of Chapter 7

Some of the most important characteristics of Chapter 7 bankruptcy are:


To become eligible for this form of bankruptcy, you first need to successfully complete and pass your means test. Another conditioning for filing Chapter 7 is to have not filed the same bankruptcy during the past eight years. Finally, you have to wait at least 180 days of your last bankruptcy petition before you can attempt to file this chapter again.


This type of bankruptcy serves to discharge the majority of unsecured debt. The trustee has the ability to sell your nonexempt assets, pay off a significant portion of your debt, and grant you a clean slate for the future.


On average, this bankruptcy process takes anywhere from three to four months to successfully finalize.


Chapter 7 is complex to file, as you have to assemble a comprehensive documentation and many legal forms, as well as navigate through demanding legal issues.

Characteristics of Chapter 13

The most important features Chapter 13 bankruptcy consists of are:


If you’re looking to file Chapter 12 bankruptcy, your secured debt cannot be over $1,257,859, while your secured debt cannot go over $419,275. You also have to show proof of regular income and be current on all your tax filings.

What’s more, this form of bankruptcy requires you to wait at least two years after the least Chapter 13 bankruptcy, and four years after the last Chapter 7 bankruptcy. Finally, you have to wait 180 days after making an unsuccessful claim before you can try filing for this form of bankruptcy again.


This type of bankruptcy involves the formulation of a repayment plan that lasts from three to five years, depending on current situation and regular income. This way, you receive a manageable monthly payment that allows you to live normally while dealing with your remaining debt.


The duration of filing for this type of bankruptcy is similar to that of Chapter 7. However, it takes a lot longer to pay off all your debt through manageable monthly installments, so the entire process can become final in as many as five years.


In general, the filing process, this chapter is easier than Chapter 7. However, it does involve submission of a detailed repayment plan and schedule that you should closely follow in the coming years.

Which bankruptcy attorneys in Rancho Bernardo, CA can help me choose my bankruptcy?

bankruptcy attorneys in Rancho Bernardo, CAIf you’ve started the process of deciding between the two different types of bankruptcy, Chapter 7 and Chapter 13, it means you’ve recognized all the signs it’s time to file for bankruptcy and you’ve started preparing for the process. Just don’t forget to explore the different types of debt in a bankruptcy, and get familiar with the common mistakes individuals make on their means test, as this is essential for a successful Chapter 7 procedure.

Or you can take the easier and better route and enlist assistance from your reputable local bankruptcy lawyers in Rancho Bernardo – Chang & Diamond. We’re here to help you choose the most appropriate type of bankruptcy for you and safely bring you into your favorable financial future. Reach out to us today and we’ll do everything in our power to quickly resolve your troubles and allow you to visit San Dieguito River Park with a clean mind again!

6 Signs It’s Time to File for Bankruptcy

How do I know if I should file bankruptcyBankruptcy can sound frightening, but it’s absolutely not. In fact, it’s one of the best ways to get your finances back on track. However, individuals still put off filing for bankruptcy even when they become aware they’re in serious financial trouble. However, it’s better to react quickly and contact a bankruptcy attorney in Rancho Bernardo as soon as you notice the first signs of severe financial trouble.

How do I know if I should file bankruptcy?

Sometimes, you’re just a little behind on your mortgage payments or you’re unable to pay all the for a single month, and that’s OK, it can happen to everybody. However, financial difficulties have a way of getting worse, getting you in an inopportune situation. As more and more signs rear their head, it’s time to consider filing for bankruptcy, and fast.

Everyday spending is becoming difficult

The first sign of the upcoming financial crisis is that you can no longer easily manage your day-to-day expenses while dealing with your mortgage, credit card debt, loan expenses, and other potentially existing financial obligations.

If you find yourself in a situation where it’s getting more and more difficult to afford normal daily living expenses, it may be the first sign that you’re involved in serious financial trouble that you won’t be able to escape without bankruptcy.

You’re using new credit cards to pay off your old credit cards

This is one of the most obvious and frequent telltale signs of looming severe financial trouble. First, it begins by using your credit cards to manage your daily expenses. From there, as you begin to increase your debt on your credit cards, you’ll start struggling to pay them off, making you use new credit cards to pay the debt off your old credit cards, entering a vicious cycle of neverending debt.

The only way to break it and to regain your independence is to file for bankruptcy and clear off as much of this debt as possible.

Debt expenditures are starting to exceed your income

At a certain point, you may only be struggling to make ends meet and put off paying a portion of your existing debt. While not great, you could switch up your habits and get back on track. However, if your debt starts exceeding your regular monthly income, it’s time to put a stop to it by filing bankruptcy and writing off a hefty portion of your financial difficulties.

You’re starting to skip on your bills

Skipping on a bill or two during one month can happen to everybody. Maybe you’ve had some unforeseen expenses or you’ve allowed yourself a luxury or two. If this becomes a habit and you find yourself constantly skipping bills and being unable to meet your basic monthly obligations, you’re going down the road to financial trouble. This is a clear signal that you should consider bankruptcy.

You’re dipping into your savings

This is a big no. No matter how dire the financial situation is, you should never start spending your savings on repaying any portion of your existing debt. If you’ve spent a month or two dipping into your savings, trying to make it all work, consider bankruptcy instead and get out of it in time.

The phone calls are coming in

Finally, if your creditors are starting to contact you all the time, bankruptcy is your best bet to not only put a stop to their harassment, but to also get out of your debt and bring yourself some much needed peace of mind.

Who’s the leading bankruptcy attorney in Rancho Bernardo to help me file bankruptcy?

bankruptcy attorney in Rancho BernardoMost people try to postpone bankruptcy for as long as possible, and there’s no reason for that. Bankruptcy is an excellent solution to your financial problems, especially if you take the time to prepare and adequately decide between Chapter 7 and Chapter 13 bankruptcy, get familiar with the different types of debt bankruptcy recognizes, and learn more about the most common mistakes you can make on your means test so you can avoid them.

All this can be a bit complicated, which is why you should always enlist professional assistance from the leading bankruptcy attorneys in Rancho Bernardo and the area – Chang & Diamond. We offer professional legal advice and representation to all individuals looking to file bankruptcy. Our mission is to bring you a predictable financial future and absolute peace of mind. With our help, you’ll soon be able to enjoy Lake Hodges again. Give us a call today!

Non-Dischargeable Debt in Bankruptcy

Which debt doesn’t get discharged in bankruptcyWhen you’re behind on your credit card payments, behind on your mortgage, and you have other debt surrounding you, bankruptcy is your go-to solution for eliminating most of it and getting back on your feet. However, hiring reputable bankruptcy attorneys in El Cajon, CA is not a cure-all, and not even bankruptcy can eliminate all the debt you’ve managed to gather. That’s why you should know which debt is non-dischargeable in bankruptcy.

Which debt doesn’t get discharged in bankruptcy?

The goal of the two most common types of bankruptcy, Chapter 13 and Chapter 7, is to eliminate as much debt as possible, help you put it all behind you, and ensure a more prosperous financial future for you and your family. However, as we’ve said, no bankruptcy can get rid of every single debt you’ve managed to create over a period of time.

Generally, the Bankruptcy Code names nineteen different types of debt neither one of these two bankruptcies can eliminate. However, some of the debt listed there is very uncommon and therefore unnecessary to discuss. Instead, take a look at some of the most frequent examples of debt which you’ll be unable to discharge through any type of bankruptcy:

  • Child support and alimony
  • Certain types of tax debt, for example liens. On the other hand, you could qualify to discharge some types of local, state, and federal taxes from several years ago.
  • Malicious and willful injury to another individual.
  • Debts regarding a personal injury or death due to the debtor’s improper operation of a vehicle while intoxicated from various substances.
  • Debts an individual intentionally fails to list as part of their bankruptcy filing.

What’s more, during Chapter 7, you’ll still owe cooperative or condominium association fees alongside other non-dischargeable debt.

Which debt is difficult to discharge?

On the other hand, there are certain types of debt either Chapter 7 or Chapter 13 can help you discharge, but with much difficulty. While possible, eliminating these debts requires experience, expertise, and knowledge of the intricacies of the Bankruptcy Code, which means you need adequate legal representation at your side. Some of the difficult-to-discharge types of debt are:

  • Student loans: It is notoriously difficult and complicated to discharge your student loans with bankruptcy. This is only possible in case you and your lawyers prove undue hardship from dependents resulting in, for example, impossibility to maintain a certain minimal living standard.

Also, there are cases in which the court decides to discharge only a portion of your student debt as a relief during your financial difficulties.

  • Income tax debts: Very specific rules apply to discharging tax debt.  Speak to a qualified bankruptcy attorney to determine tax debt dischargeability.
  • Federal taxes: Very specific rules apply to discharging tax debt.  Speak to a qualified bankruptcy attorney to determine tax debt dischargeability.  Even if not dischargeable, there are ways to settle with the IRS for less.

Which reputable bankruptcy attorneys in El Cajon, CA do I hire?

Which debt is difficult to dischargeBankruptcy is the best possible way out of your debt and into a more secure, stable, and promising financial future. However, while different types of bankruptcy can discharge much debt, they cannot take care of everything. That’s what makes learning about the debt not dischargeable in bankruptcy very important. Inform yourself and take your life into your own hands rather than waiting for involuntary bankruptcy to happen.

When you’re ready to file bankruptcy there’s only one name you should have in mind – Chang & Diamond. We’ll assess your current financial predicament and formulate the best possible plan of action to get you out of as much debt as possible and put you back on your feet again. Our goal is to provide you with a hassle-free experience that will yield fast and favorable results. Take your family, visit the Knox House Museum, and let us handle everything. Call us today!

Types of Debt Bankruptcy Eliminates

What debt goes away in Chapter 7Financial trouble is not only serious, it’s also extremely emotionally tasking, making it one of the most difficult ordeals an individual can face. However, there are ways out of such a predicament, and bankruptcy is one of the best ways to regain your independence. One of the most common reasons people hire a bankruptcy attorney is in El Cajon, CA is to discharge some of the debt they’ve gained over the years. But what debt can bankruptcy eliminate?

What debt goes away in Chapter 7?

A Bankruptcy discharge serves to release a debtor from all personal liability and puts a stop to efforts from creditors to make collections against them. This essentially means that the debtor is no longer under any obligation to keep paying any debt that’s been discharged through bankruptcy.

However, not all debt falls under the capabilities of Chapter 7, so let’s first see what this type of bankruptcy can help you with. The debt that goes away during this bankruptcy is:

  • Veteran assistance overpayments and loans
  • Overpayments regarding social security
  • Accounts with revolving charges with the exception of extended payments
  • Attorney fees with the exception of alimony awards and child support
  • Various tax penalties, as well as unpaid taxes that have past a certain amount of time
  • Judgements from the civil court, unless they’re based on a fraud
  • Money you owe due to lease agreements with the exception of past due rents
  • Business debt
  • Claims for automobile accidents with the exception of drunk-driving incidents
  • Deficiency balance repossession
  • Student loans in a rare circumstance where it’s possible to provide proof of undue hardship
  • Dishonored checks that aren’t based on a fraud
  • Utility bills
  • Personal loans taken from employers, family, and friends
  • Medical bills
  • Accounts from a collection agency
  • Charges from credit cards, including late fees and overdue

Pay attention to the timing

Another important aspect of receiving discharge is the time of the incurred financial obligations:

  • A pre-petition debt means you’ve accumulated before you started filing for bankruptcy. This is the debt you’ll be able to discharge if it qualifies for elimination.
  • A post-petition debt is the debt you rack up once you’ve already begun filing for bankruptcy, and this is not something you can discharge.

What debt goes away in Chapter 13?

Completing the repayment plan you and your creditors have agreed upon under Chapter 13 means you’ll receive a direct discharge that will eliminate the remaining balance regarding your qualifying debt. However, it’s worth knowing what the possibilities of this bankruptcy are and which debt it will definitely file off:

  • Debt on your credit cards
  • Medical bills and expenses
  • Personal loans which don’t have a collateral
  • Old tax obligations
  • Debt stemming from negligence
  • Breach of contract
  • Post-petition dues
  • Government forfeitures, penalties, and fines
  • Crammed-down and stripped liens

Which experienced bankruptcy attorney in El Cajon, CA should I turn to?

What debt goes away in Chapter 13When you’re thinking of filing bankruptcy, it’s important to be aware of the types of debt it can help you with, just as you have to know which debt is not dischargeable under certain types of bankruptcy. This way, you’ll be able to adequately prepare for your financial freedom and future after bankruptcy and prevent involuntary bankruptcy from occurring. It’s always best to take the reins and be the master of your own life.

That’s exactly what Chang & Diamond are here to do. We’ll help you choose the right type of bankruptcy for you that will discharge most of the debt you’ve accumulated over time. We’re your go-to bankruptcy lawyers in El Cajon and we’ll provide the necessary legal counsel and representation in court. We always keep your best interests in mind and it’s our wish to rid you of the stress and allow you to enjoy the gorgeous Spring Valley. Contact us today!

Life After Bankruptcy: What Should I Do?

What should I do after filing

Life after filing for bankruptcy is a lot better than life in debt while dealing with several creditors and going through the constant stress and hassle that comes with it. However, most people are scared of hiring qualified bankruptcy lawyers in El Cajon, CA because they don’t know what their life after bankruptcy will be like. That’s why it’s important to shed some light on what you should do after filing and see that life after bankruptcy is a big improvement

What should I do after filing?

The first and the most important thing you should do after successfully filing for bankruptcy is to understand which bad financial decisions caused problems with debt and insolvency. Bankruptcy has given you a fresh start, but you cannot file bankruptcy all the time, and it’s important to know what you should avoid doing in the future. 

From there, it’s time to assess your current state of finances and begin rebuilding your credit score in order to be able to qualify for potential future loans in case you need them. Depending on the type of loans you decide to take, you’ll be able to qualify for it more quickly than you think. 

How do I rearrange my finances after bankruptcy?

Once you’ve taken the first post-bankruptcy step and you’re ready to truly continue living your life to the fullest, it’s important to explore the different things you should do in order to get your finances back in order. This way, you’ll experience smooth sailing after your bankruptcy process and eliminate any difficulties you may have been afraid of. 

Maintaining your job and home

In order to start rebuilding your credit and establishing a solid financial future, it’s vital to find a job if you don’t already have one and keep it. Also, you need to find a home and ensure you have a stable residential life. This is one of the best indicators of your financial reliability to potential new creditors. 

Paying bills

It’s essential to remain current on all monthly bills, payments, and other financial responsibilities you have. This way, you’ll ensure your bankruptcy score remains clean and that creditors place their trust in you again. This also means that you need to remain careful about expenditures, as you don’t want to find yourself in a situation where you can’t meet your payments again. 

Keeping your balance 

It’s also necessary and important to establish and maintain your savings and/or checking account. What’s more, try to keep a positive balance on all your accounts at all times in order to demonstrate to your potential new creditors that your financial influx is dependable and that your financial habits are safe. 

Rebuilding credit

Finally, obtain a credit card and begin the process of rebuilding your credit score. Use your credit card wisely and demonstrate to your new creditors that you’re more than capable of responsibly using it. From there, rebuilding your credit will be easy. 

Who are the most reputable bankruptcy lawyers in El Cajon, CA?

How do I rearrange my finances after bankruptcy

When you find yourself in debt, you have to know that filing bankruptcy is the best thing you can do and the best way to get your finances back on track. That’s why you should always file on your own instead of waiting for your creditors to begin the process of involuntary bankruptcy and catch you off guard. Just make sure to thoroughly explore the type of debt you can discharge in bankruptcy, as well as the debt bankruptcy cannot discharge easily

Finally, find the most experienced and dedicated legal minds to take care of every step of your bankruptcy process. Lucky for you, that’s easy if you’re in or near El Cajon. Simply contact Chang & Diamond. We’re your go-to professionals with knowledge and qualifications to expertly handle all the different types of bankruptcy. Come to us for a free consultation, free yourself from the stress, and start enjoying Mission Trails Regional Park again. Call us today!

Involuntary Bankruptcy: What Is It?

What is involuntary bankruptcy

If you’ve gathered some debt and you’re not currently able to pay your creditors, hiring a reputable and experienced bankruptcy lawyer in El Cajon, CA and filing a suitable form of bankruptcy is the best way to regain your financial independence and security. However, not all debtors choose to go down this road and instead keep postponing their bankruptcy and putting off paying their creditors. This is when involuntary bankruptcy can come knocking on your door

What is involuntary bankruptcy?

This bankruptcy represents a legal procedure request at the hand of the creditors. This is how they ask the legal system that one of their debtors goes into bankruptcy without filing for one on their own. Creditors usually request involuntary bankruptcy if they believe they would otherwise not receive recompense for the debt they’re owed. 

In order to force a debtor into bankruptcy, creditors have to request legal action from the court. Involuntary bankruptcy usually occurs if the creditors are aware that their debtor has the financial capacity to repay the debt, but refuses to repay it. 

How does this type of bankruptcy work?

The main difference between voluntary and involuntary bankruptcy is that the former requires the debtor to file for bankruptcy of their own will, while the latter requires one of their creditors to request they file bankruptcy at the court. In order to begin involuntary bankruptcy, the creditors have to first petition the court to start the process.

The creditor petitioning for bankruptcy has the ability to initiate bankruptcy by filing a document known as the involuntary petition to the court. In this document, the creditor clarifies the reasons for filing such a document and brings forth the necessary documents that prove the necessity of granting involuntary bankruptcy. 

From there, it’s up to the bankruptcy court to make the decision on approving or denying the request for involuntary bankruptcy against a creditor. Creditors mainly request such bankruptcies against businesses and not individuals. However, both possibilities remain open depending on the specific circumstances of each case. 

What are the main requirements for involuntary bankruptcy?

The main requirement for requesting involuntary bankruptcy is that the creditor can only file it under Chapter 11 or Chapter 7 of the US Bankruptcy Code. It’s not possible to request such bankruptcy under Chapter 12 that deals with fishermen and farmers, or under Chapter 13 that is mostly available for individuals with steady income. 

What’s more, creditors cannot request involuntary bankruptcy against a credit union, non-profit, insurance company, or bank. A creditor can qualify to file involuntary bankruptcy if they have a certain claim against one of their debtors. This claim cannot be contingent upon a liability or be subject to a dispute about the liability itself or the amount of the liability. 

The amount of debt has to be no less than $16,750 and the creditor is required to demonstrate that their debtor is refusing to pay their debt. From there, the debtor has three weeks or 21 days to respond to the accusations before the process of involuntary bankruptcy begins. 

Who is the most experienced bankruptcy lawyer in El Cajon, CA?

How does this type of bankruptcy work

Involuntary bankruptcy is not something you should wait for and you should always react proactively and file for bankruptcy on your own and reap all the amazing benefits. Your life after bankruptcy will only get better as you free yourself from debt. Just make sure to closely investigate which debt bankruptcy discharges and what debt you cannot discharge through different types of bankruptcy

Once you’ve gathered the necessary information  it’s time to find the best lawyer to handle your bankruptcy and ensure swift process and successful results. That’s where Chang & Diamond come in. We’re the leading bankruptcy attorneys in El Cajon and all the surrounding areas. We offer a completely free initial consultation and professional bankruptcy representation. With our help, you’ll be able to enjoy the sights at Casa de Oro again. Call us today!

5 Important Facts About Bankruptcy

What bankruptcy facts should I knowFiling for bankruptcy can be complicated and complex, especially for the uninitiated. Besides hiring Chula Vista, CA’s most reputable bankruptcy attorneys to help you with your claim, you should also do your part in preparing for your bankruptcy procedure. The first and the most important step is to assemble all the vital information about bankruptcy and do your best to get familiar with as much of it as possible. Luckily, we’re here to help you get started.

What bankruptcy facts should I know?

Before you actually begin filing for bankruptcy, it’s best to know what the process is like and what you can expect from it. Bankruptcy is your best option for debt resolution, without a doubt, but it can still be difficult to deal with.

That’s what makes gathering the necessary information and preparing for your claim vital for success. That, and hiring experienced lawyers to guide you through it all. Before you start looking for the right attorneys, take a look at these essential bankruptcy facts:

There’s no risk of losing everything you own

The majority of your belongings will be exempt during bankruptcy. Bankruptcy Laws exist that protect a lot of your assets. These laws are called Exemption. It is important to talk to an experienced Bankruptcy attorney who can advise you whether any of your assets are in jeopardy in a bankruptcy.

The vast majority of people are allowed to keep all of their assets including vehicles, real estate, pensions, and life insurance. People fear bankruptcy because they think they’ll become destitute. The reality is you’ll regain your independence.

Monthly payments are a good thing

When you file bankruptcy, you’ll receive discharge on some or possibly all of your debt. Debt that is not discharged survives the bankruptcy. You’ll keep repaying it through manageable monthly installments. This way, you’ll both organize the remainder of your debt better and gain a way to keep replaying what you owe without making extreme changes to your lifestyle.

Bankruptcy won’t affect your job and spouse

Bankruptcy has nothing to do with your employer. Your employer is not notified. Also, bankruptcy never affects your spouse. They will retain their credit ranking. The only scenario in which your spouse will share your bankruptcy process with you is in case you have joint loans.

Creditors will stop bothering you

This is another important aspect of filing bankruptcy. You will no longer have to deal with pesky creditors. No more incessant phone calls and harassment, all that will stop once you hire a lawyer and begin your process of filing bankruptcy. You’ll finally be able to relax and get your finances in order accordingly.

You’ll receive debt discharge

Once you submit proof of your income, attend credit counseling, and perform other necessary actions in your case, you’ll receive discharge of the majority and possible all of unsecured debt. This is a significant financial boost and one that will work wonders for your finances in the long run.

Who are Chula Vista, CA’s leading bankruptcy attorneys?

Chula Vista, CA bankruptcy attorneysLearning everything you can about the vital bankruptcy facts is just the beginning of preparing for your claim. You should also pay attention to how bankruptcy in the United States developed over the years and explore some of the essential statistics concerning bankruptcy in the USA. Finally, explore some of the ways you can postpone your bankruptcy until you’re ready to file. Then, hire the best legal representation you can find.

That’s exactly what Chang & Diamond are here for. We’re the most reputable bankruptcy lawyers in Chula Vista and we’re here to ensure you have a smooth and successful journey to your financial freedom. We have the qualifications, the knowledge, and the experience to handle your case. With our help, you’ll soon be able to fully enjoy OnStage Playhouse all over again without a worry on your mind. Reach out to us today and schedule an appointment.

5 Tips on Avoiding Bankruptcy

How can I avoid bankruptcyThe first thing you should know is that avoiding bankruptcy should only be temporary. If you’re in debt and facing financial difficulties, bankruptcy is your best option for receiving a discharge, repaying your debts through manageable payments, and regaining your financial security. Postponing your bankruptcy is only good if you’re not yet ready to hire Chula Vista, CA’s reputable bankruptcy lawyers and start your process. There are several ways to do this.

How can I avoid bankruptcy?

It doesn’t matter if your debt is large or small. What matters is if you become unable to repay it. This is when the creditors can come, demanding their installments, and put you through an extremely stressful time.

That’s why it’s not good to avoid or postpone your bankruptcy. Filing bankruptcy is probably your best bet at getting out of your debt and finding your feet again. However, if you’re not ready to file just yet, there are several things you can do to avoid filing, at least for a time.

Use cash

First and foremost – stop taking additional debt on your credit cards and resort to using cash as much as possible. This way, not only will you prevent accumulation of even more debt, but you’ll also learn to manage your finances a lot better by purchasing only those items you can afford with the money you have. Otherwise, you’ll only end up with more debt.

Keep track of the spending

Start using a monthly expense and income sheet to keep good track of your spending habits. This way, you’ll identify how much you’re spending and if you can actually afford to spend that amount of money with your current income. Also, you’ll identify all the potentially negative habits in your spending pattern, allowing you to eliminate and change them.

Settle the bills

If you’re facing financial difficulties, focus on paying your bills first if you can. This way, you’ll prevent adding more debt through unpaid bills. Also, not paying your bills on time will only lead to further financial problems and negative consequences for your credit score.

Update your plans

You might have several outdated plans by different service companies that you can update and save money on them. Old plans for internet, cable, and cell phones could be much more expensive than they need to be, and updating them will bring significant financial benefits.

Try to reduce your rates

Sometimes, all you need to do is reach out to your credit card company and see if they’re willing to reduce their rates for your credit card debt. Also, don’t forget to ask them if rate reduction involves any fees.

Who are Chula Vista, CA’s most reputable bankruptcy lawyers?

Chula Vista, CA bankruptcy lawyersIf you’re not ready to file for bankruptcy, you can try some of these tricks to avoid and postpone it. However, know that bankruptcy is your best way out of debt, so you should learn about the history of bankruptcy in the USA and explore the statistics that show how bankruptcy helps people across the country regain their freedom. Finally, see what some of the most important facts about bankruptcy are if you’re still not sure if you should file or not.

Then, once you decide to file bankruptcy, come to the leading bankruptcy lawyers in Chula Vista – Chang & Diamond. If you’re aiming toward a successful and seamless bankruptcy, you can count on us. We have the experience, skills, knowledge, and expertise to handle different types of bankruptcy cases with the same level of professionalism. Come to us for a free consultation and start enjoying Chula Vista Marina without worrying about anything. Call today!