Personal Bankruptcies Hit An All-Time High, No Relief In Sight

San Diego Bankruptcy Lawyer – Chula Vista Bankruptcy Attorney

Personal bankruptcies have increased over 10 percent in the first quarter of 2010 in relation to the first quarter of 2009. These large increases in Chapter 7 and Chapter 13 debt relief cases are in states that already had the highest rates of bankruptcy. As San Diego bankruptcy lawyers we have seen the largest increases in sole proprietors and small business owners. We believe the reason is that credit is now so difficult to obtain and business owners must resort to bankruptcy to stay afloat.

We generally find that individuals and businesses battle their financial situation for at least two years before considering bankruptcy protection. As San Diego bankruptcy attorneys we find this to be a big problem. San Diego consumers are spending years wasting their hard-earned money on debts their know they will never be able to repay.

We are also seeing a shift in the rates of Chapter 7 vs. Chapter 13. Chapter 7 bankruptcy allows for the complete elimination of unsecured debt. Chapter 13 bankruptcy is a reorganization of ones debt. Chapter 13 has the power to stop foreclosure while forcing your mortgage company to accept payment on delinquent debts through the bankruptcy trustee. In the past, an individual may loose a job and file for Chapter 13 because he or she knew they make the payments because they could get a job within months. Now, with unemployment so high, that is not the case. Also, with houses prices decreasing, San Diego homeowners are walking away from their properties rather than filing for Chapter 13 because there is no equity.

As San Diego bankruptcy lawyers, we believe that bankruptcy judges should have the power to adjust mortgage interest rates and/or reduce the principal on loans. This would prevent the common “walk-away” which we believe to bad in general.

We are also seeing an increase in San Diego creditors asking the court to intervene so they can pursue the foreclosure. As San Diego bankruptcy attorneys, we call this relief from the automatic stay.

We at the Law Office of Harold D. Thompson are San Diego Bankruptcy Lawyers dedicated to helping you get out of financial distress. If your debts are piling up and you are looking for a “fresh start” call a Chula Vista Bankruptcy Lawyer that will fight for your rights. Bankruptcy fees start as low as $800.00. Don’t be fooled by big advertisers charging thousands of dollars. Call us TODAY at 619.615.0767 or visit one of our two websites atwww.ThompsonLawSD.com or www.MySanDiegoBankruptcy.com