Bankruptcy FAQ

Escondido Bankruptcy Lawyer – San Diego Chapter 7 & Chapter 13 Lawyer

What is a Chapter 7 bankruptcy filing?

A Chapter 7 bankruptcy is know as a liquidation. In other words, a Chapter 7, if you qualify, eliminates your unsecured debt. This bankruptcy filing will require you to show that your income is below a threshold level. This level is know as the “means-test.” You may be able to eliminate credit card debt, wage garnishment, car loans, lawsuits, and much more. Your Escondido bankruptcy lawyer will tell you if Chapter 7 is right for you.

What is a Chapter 13 bankruptcy filing?

A Chapter 13 bankruptcy is known as a reorganization. In other words, the bankruptcy court consolidates your bills into a plan. You then a make a payment to the bankruptcy trustee who pays your creditors. Generally your plan payments will be much lower than what you had been paying before. Also, we may be able to remove your 2nd mortgage if the value of your home is lower than what you owe.

Can a San Diego bankruptcy stop foreclosure?

A San Diego bankruptcy will most definitely stop a foreclosure but you must contact a San Diego bankruptcy lawyer as soon as you get a Notice of Default. As soon as your Chapter 7 or Chapter 13 is filed the court issues was is called an automatic stay which prevents all collection action on your debts including foreclosure. A Chapter 13 will allow you to cure delinquent payments and continue making your payments directly to your lender.

Will I be able to get credit after bankruptcy?

As San Diego bankruptcy lawyers we can certainly say you will get credit almost right after your Chapter 7 or Chapter 13 filing. Of course, the interest rates are going to be a bit higher and the credit limit a bit lower but after bankruptcy you need to not be carrying a balance. Credit after bankruptcy should be a way to re-build your credit and prove you are a good credit risk.

Will a short sale prevent a foreclosure?

A short sale will certainly prevent a foreclosure but there are several things an experienced bankruptcy lawyer should tell you. First, a short sale does not guarantee the lender will not come after you for the remainder of the loan. We have been seeing increased instances of lenders being very sneaky with their short sale agreements and not absolving you of the balance. Second, short sales are getting harder and harder to get approved. We are seeing about 1 in 10 being approved and the process could take months. During that time you still have to make your mortgage payments or the lender will foreclose. Often times a Chapter 7 or Chapter 13 bankruptcy is a much better option.

Can you remove my 2nd mortgage with a Chapter 13 bankruptcy?

Yes. As San Diego bankruptcy lawyers, we have been successful in removing people’s second mortgage with a Chapter 13 bankruptcy. The idea is that if your 2nd mortgage is totally unsecured than the bankruptcy court will wipe it away. For this to happen, you must owe more on your home than it is worth.

What should I look for in a Chapter 7 or Chapter 13 attorney?

We think it is very important that you have an experienced San Diego bankruptcy lawyer. You financial future is very important. You would not want to leave it to someone that has been practicing law for 2, 5 or 10 years.  Further, you also want someone who is going to be compassionate and non-judgmental. Times are difficult enough without your lawyer looking down on you because of your financial troubles. Finally, you want to make sure you are getting a fair price. Don’t be fooled by big advertisers. They will charge you thousands of dollars for a bankruptcy filing the could start as low as $800.00

If I file bankruptcy will I have to go to court?

Generally no. You will only have to go to the meeting of creditors which is held as the US bankruptcy trustee’s office. Generally the meeting will last about 15-20 minutes and most creditors do not attend. You bankruptcy lawyer will be there to guide you through the process.

Will filing bankruptcy stop creditor harassment?

It should. As soon as you file for Chapter 7 or Chapter 13 bankruptcy protection the court issues an automatic stay which prevents your creditors from collecting on your debts. This should stop foreclosures, phone calls and letters. If you continue to get harassed by creditors after filing bankruptcy you must tell your lawyer because your creditors could be subject to heavy penalties.

How much does it cost to file bankruptcy?

We like to be up-front with our clients. Our bankruptcy fees start at $800.00. Period. You will see other law firms charging thousands of dollars and we find this outrageous. Also, if you are going with one of the big advertising firms expect to pay way more than you should. Why? Where do you think they get the money to pay for all that advertising? YOU! You won’t getting any better legal representation you will just have less money in your pocket.

Can I be fired for filing bankruptcy?

No. It is illegal for you employer to fire you because you filed for Chapter 7 or Chapter 13 protection. If your employer fires you because of your bankruptcy filing contact your lawyer right away.

Who will know about my Chapter 7 or Chapter 13?

Well, your bankruptcy is a matter of public record, but who is going to going down to the bankruptcy court and search the files? Not many people, we guess. Really, the only people that will know are your attorney, your creditors and the bankruptcy court.

We at Thompson | Wedeking are Escondido 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 San Diego bankruptcy attorney that will fight for your rights to stop creditor harassment in San Diego. Bankruptcy fees start as low as $800.00. Don’t be fooled by big advertisers charging thousands of dollars. Call us TODAY at 1.888.590.1773 or visit one of our two websites at San Diego Bankruptcy Lawyers or My San Diego Bankruptcy.

The Chapter 7 and Chapter 13 bankruptcy attorneys at Thompson | Wedeking are proud to serve clients in Southern California and in the South Bay, including San Diego County, Orange County, San Bernardino County, and Riverside County; and the cities of San Diego, Carlsbad, Chula Vista, Coronado, Del Mar, El Cajon, Encinitas, Cardiff-by-the-Sea, Leucadia, Olivenhain, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Oceanside (San Luis Rey), Poway, San Diego, San Marcos, Santee, Solana Beach, Vista