When to File for Bankruptcy in Rancho Bernardo

Is filing for bankruptcy a moral or financial decision? Well, that’s food for thought. The term bankruptcy raises chills for many folks. Could it be the way media depicts it which affects our whole perception about bankruptcy?

We live in times when our mailboxes are filled by credit card offers. Living in debt is, has in fact become the new norm, and many people suffer because of it. In some cases, the debts may start piling up and getting out of control. But do you know when it is time to call for help? At Chang & Diamond, APC, we offer free initial consultation. If you are concerned about your current debt situation turning against you, do not wait a single day more to contact us. Let our friendly bankruptcy attorneys take a glance into your finances, and you can be assured that we have the best course of action of your behalf.

Assessing the Situation

Let’s begin with a checklist to see where we stand.

  • Do you make only minimum payments to your credit card companies?
  • Are creditors calling you?
  • Are you scared at the thought of organizing your finances?
  • Are you thinking about debt consolidation?
  • Are you unsure of your current debt?

If your answer to two or more questions above is “yes”, it is then in your best interest to contact our Rancho Bernardo bankruptcy lawyers. A simple definition of bankruptcy would be that what you owe exceeds what you can pay, and we can help you turn that around for good.

To establish where you stand financially, list all your liquid assets and add up their estimates. This should include cars, real estate, stocks, bonds, retirement funds, college savings, and any other non-bank account funds.

Then take your bills and credit statements and add them up together. If the value of your debt exceeds your assets, then filing for bankruptcy may be your best bet out of this sticky situation. However, bear in mind that it is not the only solution available, and in that case, you should always consult our attorneys at Chang & Diamond, APC.

Declaring Bankruptcy

You can either go bankrupt as a result of your creditors asking the court to order you bankrupt or volunteering to file for bankruptcy. We offer two options when it comes to declaring personal bankruptcy. Each has its eligibility criteria and pros and cons. Therefore, you may want to consult with our Rancho Bernardo bankruptcy lawyers before you proceed.

Chapter 7

You should understand that hundreds of people are filing Chapter 7 bankruptcy for many different reasons. Some of the causes include marital problems, hefty medical bills, unemployment, and overextended credit among many others.

A Chapter 7 bankruptcy, also known as a ‘Straight Bankruptcy’ liquidates all your nonexempt assets to pay off your creditors. In about four months, you will get a notice of discharge from the bank. However, not everyone is eligible for Chapter 7 bankruptcies. To qualify, you have to pass what we call a ‘means test.’

Chapter 13

Chapter 13 bankruptcy is referred to as reorganization bankruptcy. If you have a consistent and predictable income, Chapter 13 gives a three to five years grace period for you to pay off your debt. After the end of the grace period, any remaining debts are discharged.

Do you need to reorganize your finances so that you can make more affordable debt payments, whilst keeping your assets? Contact our bankruptcy lawyers in Rancho Bernardo today and let us organize that for you.

Although hard to admit that you may need an extra hand to dig you out of debt, filing for bankruptcy is sometimes the only right thing to do. Stop ignoring the phone calls and the letters. Instead, contact Chang & Diamond, APC for a new beginning for financial stability.

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