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Bankruptcy Lawyer San Bernardino CA

Filing for bankruptcy is a powerful tool for both individuals and businesses alike, and when used properly, it can help someone address their debts in a way that can give them the ability to move forward with their life or their business operations again. However, bankruptcy is not a “magic bullet” that can fix all of your problems at once and requires careful planning and execution to ensure that this option provides you with the support and relief that you need.

Working with a bankruptcy attorney is one of the most important moves that you can take early into this process to ensure that every step you take is done with care and brings you closer to your ultimate goal. There are multiple options for bankruptcy that provide different outcomes and paths towards financial security, and each option comes with its own pros and cons that you will need to consider and understand. 

Lindsey Law A.P.C. is Here to Help

Lindsey Law A.P.C. will be able to review your current financial situation, your goals for bankruptcy, your debt structure, and more, and will then help you identify the path forward for a positive outcome. Contact us now to schedule an initial consultation where we will be able to discuss your circumstances in detail so that we can get a better understanding of how we will be able to work together toward your goal. Every bankruptcy is unique, and we are dedicated to providing each of our valued clients with the care and attention they deserve through this complex time in their life.

Read more below about California bankruptcies and contact us now to get started on yours today.

Common Types of Bankruptcy

There are a variety of bankruptcy methods, each referred to as their corresponding chapters in the U.S. Bankruptcy Code. The following are the most common options for individuals and businesses, and it is extremely important that you know exactly why you are choosing your bankruptcy method before taking any steps. Different chapters provide different processes and different outcomes, and you will need to consider each of the pros and cons before deciding to move forward with your filing.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also known as a “liquidation” bankruptcy because it liquidates the majority of the filer’s debts. This is a drastic option where “the bankruptcy trustee has the ability to gathers and sell the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.”

When you file for Chapter 7, either as an individual or a business, you will need to prove to the courts your inability to repay your debt. If you’re an individual, you will have to pass a Means Test.

Some assets are exempt from a Chapter 7 bankruptcy filing, meaning that you may be able to retain certain assets. Additionally, not all debts are automatically discharged, such as student loans, tax liens, and alimony.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is known as an “individual debt adjustment”, or a wage earner’s plan. Under this method of bankruptcy, debtors may seek relief from their debts in the form of restructuring, where they will be able to propose new installment plans with their creditors for a 3-year or 5-year course. This option is extremely beneficial for people who do not want to lose non-exempt assets, such as their homes, as they attempt to seek relief from their debts.

In addition to retaining your assets, Chapter 13 also provides debtors with the additional benefit of protecting any co-signers who are responsible for these debts. Under Chapter 7, cosigners are not relieved of their responsibility to the debt, which can cause serious problems; under Chapter 13, cosigners will not be left solely responsible for their cosigned financial liabilities.

You will need to provide the U.S. trustee with a Chapter 13 bankruptcy plan, which must be approved by the trustee. These plans can be quite complex depending on the specifics of your situation, which is why it is so important that you work with a San Bernardino bankruptcy lawyer throughout this process.

Frequently Asked Questions About San Bernardino Bankruptcies

The following are just some of the questions that we will be happy to answer for you during our initial consultation, and will continue to refine throughout our work together. As you likely realize, your financial situation is entirely unique, meaning that the following answers will not provide you with a complete understanding of what you can expect. The best way to get a specific understanding of your situation and options is to contact Lindsey Law A.P.C. now.

Which bankruptcy is right for me?

In order to determine which bankruptcy chapter makes the most sense for you, we will need to go through all of the specifics of your situation and determine the best outcome for your case. If you have assets that you wish to retain, that you cannot exempt, and you have a sufficient amount of disposable monthly income to pay into a plan, then a Chapter 13 may be right for you.

However, if you wish to clear as much debt as possible and are willing to forfeit any and all nonexempt assets, then Chapter 7 bankruptcy may be the correct option. This is an option that will discharge most of your unsecured debt. However, there are exceptions, as previously mentioned.

Will I need to continue making alimony payments after filing for bankruptcy?

Alimony is not discharged. Student loans, tax liens, debts for wrongful death, and some other types of debts are not automatically discharged. We will need to take stock of all payments that you are currently responsible for in order to identify which will be discharged under bankruptcy, and which will not.

Does filing for bankruptcy mean that I will lose my home?

If you have assets such as a home that you wish to protect while attempting to relieve your debts, then you may want to focus on a Chapter 13 filing. This will not eliminate your debts but will provide you with a framework to propose a new payment structure over a 3-year or 5-year period while allowing you to retain your assets (Chapter 13 plan).

Under a Chapter 7 bankruptcy filing, we will need to go through all of your assets, including your home, and determine which are exempt from liquidation, and which are not.If you have any questions about Chapter 7 or Chapter 13 bankruptcies, or you’re in fear of losing your home to foreclosure, contact Lindsey Law A.P.C. immediately.

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