Personal Bankruptcy

Finding Freedom And A New Start Through Personal Bankruptcy

Southern California has its perks, but it can be a difficult place to live. Housing and costs of living continue to increase while salaries and full-time employment opportunities stay fairly stagnant. Even if everything else is going great, sometimes “life” happens and leaves you in a precarious financial state. Some feel that there is shame and embarrassment associated with being in debt. Most of the time, those feelings are undeserved. Millions of Californians are living paycheck to paycheck, which means that they don’t have a financial cushion for an emergency. A single, severe medical problem, a family emergency, or an unexpected life change can result in debt that quickly spirals out of control.

Some may view bankruptcy as the easy way out. But if you’re struggling with debt you cannot afford to repay, filing for bankruptcy may be the most responsible option. It means that you are taking control of your financial future and reaching out for help when you need it most.

Learn More About Your Personal Bankruptcy Options

Our firm is ready to work with you to find the most useful financial and legal tools to address your debt problems. If bankruptcy is not the best solution for you in our attorney’s legal opinion, then we will not recommend that you file for bankruptcy. In the realm of bankruptcy, there are two common options that individuals utilize.

Chapter 7 — bankruptcy focuses on discharging unsecured debts while protecting the assets that are most important to you. Certain assets may need to be liquidated in order to partially repay debts, which is why Chapter 7 is also referred to as liquidation bankruptcy. Read more about Chapter 7 bankruptcy 

Chapter 13 — bankruptcy focuses on reorganizing debts so that they can be repaid over time — usually a period of three to five years. It is easier to qualify for Chapter 13 than Chapter 7, making it an attractive option for individuals and couples who are facing debt problems but also have a steady source of income, mortgage payments to catch up on, or liens to remove from an existing property. Read more about Chapter 13 bankruptcy.

Some individuals have debt amounts higher than the limits of Chapter 13. If these individuals also have a high income, they may want to pursue Chapter 11 bankruptcy. Normally, Chapter 11 is utilized by businesses, but in rare cases, it is appropriate for individuals.

We Can Also Explore Debt Relief Alternatives

The lawyers at Joshi Law Group are highly knowledgeable about and experienced in bankruptcy law. But we also understand that declaring bankruptcy isn’t appropriate for every client. We are well-versed in all available forms of debt relief, and we will recommend the options that are best suited to your individual needs.

At our first meeting, we can look over your credit report and determine if there are debt-management strategies that you could implement. If you have significant debt that is five or six years old, for instance, the debt may be nearing the statute of limitations. As such, you could just wait out your creditors. You may also try contacting the creditor and offering to settle the debt for far less than the amount owed.