San Diego is a beautiful city with parks, beaches, and a pleasing climate. But every year, the cost of living seems to increase in California. Even corporates like Qualcomm and Dexcom are laying off its employees now and then. And the situation has turned worse with the pandemic. It leads to people filing for bankruptcy claims. Let’s explore the possibilities of a Chapter 7 bankruptcy claim. It’s also good to examine the advantages and disadvantages of declaring bankruptcy, types of bankruptcy filing available, and how to get out of debt San Diego, etc. But first, let us start with the basics!
Bankruptcy is a legal procedure through which people unable to settle their debts/bills or other payments can opt for financial relief. It is a legal right provided to every citizen by the US bankruptcy law.
Filing for bankruptcy provides some breathing room as it stops debt collectors from collecting their debts for a short term until a resolution is agreed upon in the court. Under California law, people can file for two types of bankruptcy claims: Chapter 7 and Chapter 13.
Each of these claims comes with their set of advantages and disadvantages. Hence, if you are looking to file a bankruptcy claim, it’s better to seek an attorney’s advice in your region for clarity. For example, if you are a resident of El Cajon, your first query must be the “best bankruptcy attorney in El Cajon.”
What Are The Advantages And Disadvantages Of Declaring Bankruptcy?
When it comes to declaring bankruptcy, there are many advantages as well as disadvantages. Filing for bankruptcy allows a debtor to get rid of some or all of the bills and debts. But it can also prevent one from reclaiming some essential assets, including the primary ones, which could even include one’s cars.
Once you file for bankruptcy, you can breathe easy as you get some relief from debt collectors and banks from pestering you to collect their debts. Another significant advantage of filing for bankruptcy is that it doesn’t have any adverse effects on the debtor’s career.
Employers discriminating against anyone for filing bankruptcy is against the law. But that doesn’t mean that one can run away from all their debts. According to California bankruptcy law, you still need to pay your pending taxes and fines collected recently.
Another grave disadvantage of filing for bankruptcy is that it creates a significant dent in one’s credit score. Hence, credit lenders will rethink before issuing a personal or auto loan to such a debtor.
Steps To File Chapter 7 Bankruptcy San Diego
If you are looking to file a Chapter 7 bankruptcy claim, you need to understand its steps. Before that, one needs to decide whether one will be representing oneself or needs bankruptcy attorney in san diego to represent the case. In case you are wondering, “How to find the best bankruptcy attorney near me?” you can keep certain points in mind, such as the reputation of the attorney, their experience, and so forth.
The steps involved in filing bankruptcy include:
- Collect all required documents (ID proof, bank statements, proof of ownership documents, tax return statements, etc.).
- Attend credit counseling sessions without fail.
- Fill up your bankruptcy forms accordingly.
- Pay the filing fee and file your documents in court.
- Mail all documents to your assigned trustee.
- Attend your second credit counseling session.
- Participate in 341 meetings with your attorney, trustee, and creditors.
People looking to file bankruptcy can download all the files from the California Bankruptcy court website. The bankruptcy law in California also allows people to pay their filing fees in easy installments if they find it tough to pay them upfront. Remember, it is mandatory to attend credit counseling sessions. You have to submit the course completion certificate and your documents to the court to get out of debt in San Diego.