For many Escondido residents, the need to file for bankruptcy comes up suddenly due to unexpected expenses that sap a person's savings and throw them too far into debt. For others, the debt burden gradually gets larger over the years, eventually reaching the point where even making minimum payments on debt obligations is no longer possible. No matter which category our readers fall into, there are certain steps that will need to be taken before actually filing for bankruptcy.
First, Escondido residents should make sure that they explore whether there are any other debt solutions besides bankruptcy that could apply in their situation. Although a personal bankruptcy filing can have many advantages, most people understand that this is a step that is not to be taken lightly. In many cases, if there are alternatives, they should probably be considered first.
Next, if a bankruptcy filing is going to go forward, Escondido residents will need to determine the type of bankruptcy for which they qualify. Bankruptcy law can be complex, and each person's financial situation is unique. Getting more information about which chapter of the Bankruptcy Code will apply is crucial.
Lastly, people who are going to file for bankruptcy will need to understand what will be addressed in the action and what won't. Basically, it comes down to understanding which debts will be discharged and which ones will not. There are a number of factors that will come into play in this determination, so Escondido residents will want to make sure they get the right information in order to fully understand what the aftermath of a bankruptcy filing will look like.
Source: courts.ca.gov, "Bankruptcy," Accessed Dec. 13, 2015