The Bankruptcy Process: What You Need to Know
Do I qualify for bankruptcy? Will I lose my house or retirement funds? What debts can be discharged? What happens after filing bankruptcy?
The Law Office of Richard Stevenson in San Diego, California can answer all your questions about filing for bankruptcy. In fact, many clients have said that Richard Stevenson was the first one who took the time to help them understand the process and give them all the information they needed to make an informed decision.
Call today at (866) 587-7260 (Toll Free) for a free initial consultation.
Mr. Stevenson serves individuals throughout San Diego County.
Initial Steps
At your first meeting, we explain the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Mr. Stevenson will discuss the income means test for filing Chapter 7, exempt property, dischargeable debts and what financial data you need to gather to continue.
Is There an Emergency?
If you are in danger of losing your home or your car, or your wages are being garnished, it may be necessary to file quickly to avoid foreclosure/repossession.
Are There Reasons to Wait?
Timing is important. Waiting to file may be necessary or advisable:
- Some back taxes can be discharged if you can wait long enough.
- If your income goes down (e.g., job loss), you may qualify for Chapter 7.
- Recent cash advances, large purchases or transfers of assets too close to filing might be considered fraudulent.
- Payments to unsecured creditors within 90 days before filing can be reclaimed. For example, if you paid any unsecured creditor more than $600 and other creditors went unpaid, the bankruptcy trustee may demand that money back.
Next Steps
If you decide to go ahead with filing bankruptcy, Mr. Stevenson will explain the costs and legal fees and discuss payment options. He obtains your credit report, and fully examines your financial picture. He can explain which debts are dischargeable, which are not, and which assets are exempt (home equity, retirement funds, vehicles, etc.)
Filing and Life after Bankruptcy
When you file for bankruptcy, a date is set about 30 days after filing called a creditor's meeting. The trustee will ask you to verify certain information and answer questions. Mr. Stevenson attends the hearing with you. If you file Chapter 7, the discharge is generally granted approximately 60 days after the creditor's meeting.
Filing should never be a "guess" or a "hope." Mr. Stevenson diligently prepares your petition and files only when he is confident it will be approved.
After a bankruptcy, you initially may find it difficult to get credit or be charged higher interests rates for credit cards or loans. A bankruptcy stays on your credit report for up to 10 years. Within two to three years, however, most people can re-establish a sufficient credit rating to qualify for loans.
Credit Counseling
Recent changes in the bankruptcy law require anyone filing bankruptcy to obtain debt counseling from an approved provider:
- Prior to filing, you must speak with a debt counselor to review your financials, establish a budget and receive an opinion on bankruptcy and alternatives.
- After filing, you must take a debtor education course. These are offered online, by video, take-home workbooks, or even over the phone.
The Law Office of Richard Stevenson often recommends Hummingbird.org or the Institute for Financial Literacy, but you are free to choose any credit counseling agency approved by the U.S. Trustees Program.
Contact us today. We are glad to answer any questions you have about this intimidating process.
We are a debt relief agency.
We assist people in filing for relief under the Bankruptcy Code.
