Answers To Common Questions About Bankruptcy
At The Law Office of Judith A. Descalso, we listen carefully, answer questions honestly and guide debtors appropriately given their circumstances and goals. We hope to hear from you soon if you are considering bankruptcy in California. Meanwhile, we have provided some preliminary information below.
How can I determine whether bankruptcy is my best debt relief option?
Consider factors such as how far out of control your debt is, how quickly you hope to get back to a level playing field and whether other debt relief options might work instead. You may be able to negotiate reduced settlements with creditors who would rather receive partial repayment than have their entire loans to you wiped out through a bankruptcy discharge.
When should I file for bankruptcy?
The question of timing is an excellent matter to consider. If you have recently paid off a large loan, you may not be able to file for bankruptcy for a while because the bankruptcy court may say you showed preference to that creditor. However, you may realize bankruptcy will be your best long-term solution. A bankruptcy lawyer can help you determine the most advantageous time to file, based on your individual circumstances.
What type of bankruptcy should I choose?
If the required means test indicates that you qualify for a Chapter 7 bankruptcy, this may be your best option for getting debts discharged quickly. If you have home equity or other assets such as expensive cars that you hope to keep, Chapter 13 may allow you to balance financial reorganization with your customary lifestyle. Chapter 11 may be the best choice for your business if you hope to restore profitability.
If I file bankruptcy, what can I keep?
California offers two exemption schedules to choose from. At the same time, federal exemptions will apply in certain cases, such as with civil servants’ retirement assets. Many of our clients are able to keep most or all of their personal assets through and beyond bankruptcy.
After going through bankruptcy, how can I rebuild my credit?
As part of your bankruptcy, you may undergo mandatory credit counseling. Pay attention to the advice offered in that program. Once your bankruptcy is complete, you may be pleasantly surprised by the number of credit offers you soon receive. Proceed carefully and repay debts responsibly to rebuild your credit score.