Bankruptcy is a useful tool to help people who have found themselves in difficult financial situations. While there is a stigma around bankruptcy, it is much more common than most people think. There is also a lot of misconceptions about the bankruptcy process as well, including the idea that you will lose everything you own. Here in California, people that go through bankruptcy are allowed very generous exemptions that protects most or all of their possessions including their car, home, etc.
There are two main types of bankruptcy available to the average person. There is Chapter 7 and Chapter 13. Chapter 7 bankruptcy is the bankruptcy process that most people think of when they think of bankruptcy. The Chapter 7 process takes about 4-5 months and discharges most unsecured debt (credit card debt, personal loans, etc.) Chapter 13 is a debt repayment plan that usually lasts around 5 years. It is determined how much debt can be repaid and payments are made monthly to the bankruptcy trustee. Chapter 13 can stop foreclosures, repossessions, and other types of debt collecting.
If you think your situation makes you a good candidate to file bankruptcy, please reach out to us for a free consultation with an attorney today!