Consumer Bankruptcy in Salinas CA

At the present time, consumers can choose between filing for either Chapter 7 or Chapter 13 bankruptcy, but how will they know which one is right for them?

So just what is a Chapter 7 bankruptcy in Salinas CA?

If you want to be debt free as quickly as possible, your best course of action is to file for Chapter 7 consumer bankruptcy. Your attorney will work closely with you to minimize your losses so that you can pay off some of your debts but still walk away with some of your standard of living and dignity intact. You’ll be debt free immediately, and although you will accept some restrictions for a while, the pressure of your debts is off and you can start to rebuild your life again. This immediacy is one of the reasons that consumers choose this type of bankruptcy.

How is Chapter 13 different?

In a Chapter 13 consumer bankruptcy, the debtor puts together a plan where they propose to pay off a share of their debts over five years. For those five years the debtor remains in full possession of their assets, and on completion of the five year debt repayment plan they are discharged of all remaining debts. This type of bankruptcy is often referred to as reorganization due to the way that you are managing your financial obligations over the period of repayments.

Which one is best for me?

You certainly should think long and hard before choosing any form of bankruptcy. Given that it will be on your credit record for ten years, you will want to think about the possible implications of taking this course of action. The good news is that once you have discharged your consumer bankruptcy in Salinas CA then you credit rating will improve. It will only take three or four years for you to qualify for mortgages again. Just remember to take care with your legal forms and fill them out properly, to avoid making any false statements that might get you into legal trouble later.

How can I avoid consumer bankruptcy?

The best way to avoid filing for bankruptcy is to cut your use of credit severely and fast. People are slowly waking up to the reality of bankruptcy and are tightening their consumer spending and use of credit. Especially since 2005 when Congress made it more difficult to file for bankruptcy, Americans have had to get better at paying off their debts and more recently banks have made it harder to continue borrowing. |The best way to keep from bankruptcy is to avoid using or abusing credit. Luckily, people are becoming increasingly aware of the problem of bankruptcy and are becoming better educated about it. Ultimately, it is harder now to get consumer credit and this should make it harder for people to get themselves into personal difficulties.

Should I put off consumer bankruptcy?

Debt collectors and repossession are bad enough, but imagine if you can’t afford the fees for a bankruptcy filing? The effect on your physical and health, relationships and reputation can be debilitating and last for years. Creditors can hound you for collection, and can sue you for any amount of debt whether large or small, culminating in judgements against you and destroying your credit rating for up to ten years. They can obtain wage garnishments in almost all states of the USA (Pennsylvania and South Carolina excepted) which will severely impair your ability to provide for your basic needs.

How ironic to be trapped in a situation where you cannot afford to go bankrupt! If you suspect that you might need to file for consumer bankruptcy in Salinas CA at some point in the future, it would be prudent to squirrel away the money now to safeguard your options later. With all this stress and distress attached to it, it’s not surprising that consumer bankruptcy in Salinas CAis such an emotive subject. Seek professional help to ensure your own peace of mind.

Stephen H. Kim, Attorney at Law
10 S Filice St #1, Salinas, CA 93905 831-221-5022