Call Toll-Free 800-300-2300

When should one file for bankruptcy?

Each year, many California residents struggle with the difficult decision to file for bankruptcy. It is a decision that should only be made after careful thought, but for many it is a decision that leads to a brighter financial future.

Before deciding to file for bankruptcy, you may discuss alternatives with your attorney to determine if there are any other options out there for you. Some people may find that reducing expenses, finding ways to increase income or selling property may be an alternative to bankruptcy. In some cases, a credit counseling agency can come up with a repayment plan with a lower interest rate and help you budget your expenses. However, make sure the agency you contact is legitimate and not trying to take advantage of your vulnerable state.

If you have gone over your options with your attorney and still feel that bankruptcy is your best option, you should then consider what type of bankruptcy is right for you. In California, the most common forms of bankruptcy include Chapter 7, Chapter 11, Chapter 12, and Chapter 13. If you are an individual, that makes less than a certain level of money, Chapter 7 bankruptcy may be your best option. The court will sell all your assets for cash and use that cash to pay off many of your debts. This liquidation bankruptcy allows you to keep assets that are exempt from sale under federal or state law. If you choose this type of bankruptcy, you will not be able to file again for six years.

For more information about your options for bankruptcy, consider speaking to an experienced bankruptcy attorney. Your attorney can help you evaluate the pros and cons of each type of bankruptcy and help you determine what is best for you and your family. If you decide to move forward with the filing, your attorney can assist with the necessary paperwork and court proceedings.

Source: California Courts, "Bankruptcy," accessed on March 12, 2018

No Comments

Leave a comment
Comment Information
Call Toll-Free 1-800-300-2300
Email Us For A Response

Don't Wait To Get The Help You Need Get Started Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our Offices

Long Beach Office
301 E. Ocean Blvd.
Ste. 1700
Long Beach, CA 90802-8812

Toll Free: 800-300-2300
Phone: 562-485-9376
Fax: 562-624-1178
Long Beach Law Office Map

Costa Mesa Office
600 Anton Blvd. 11th Floor
Costa Mesa, CA 92626

Toll Free: 800-300-2300
Phone: 562-485-9376
Fax: 562-624-1178
Costa Mesa Law Office Map