San Diego Bankruptcy Lawyers

Economic Woes Hit All Income Levels in San Diego

The economy’s impact on the luxury hotel market is grabbing the headlines in San Diego with the imminent foreclosure of the hip W Hotel in downtown.  The hotel is no longer worth what is owed on it—a story that can be told by many homeowners across California, including San Diego.   Thousands are struggling to survive the recession and bankruptcies are on the rise.  It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, triggered by the foreclosure crisis and economic downturn.

Bankruptcy Legal Advice in San Diego

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005.  Seek the advice of a San Diego law firm with specific long-term experience in San Diego bankruptcy matters.  A competent San Diego attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.  

A Common Bankruptcy Choice in San Diego

Chapter 7 is the “fresh start” chapter of the Bankruptcy Code and most commonly used in San Diego.  This filing results in a fair distribution of your available nonexempt property to creditors.  Included in this process is a “means test”, used to determine your ability to pay your creditors, verifying whether Chapter 7 is appropriate or indicating that you should be filing Chapter 13.  Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate filing status for a given situation.

Debts You Will Still Owe After Your San Diego Bankruptcy:

·         Taxes owed to government agencies, such as the I.R.S., State, County, etc.

·         Student loans (unless undue hardship can be proved),

·         Debts incurred after the bankruptcy is filed

·         Debts owed to a spouse for divorce-related obligatory expenses

·          Debts not listed or scheduled or which the debtor waived discharge

·         Debts for willful and malicious injury by the debtor to another person or property owned by another 

Credit Repair Following Your San Diego Bankruptcy

Begin working on your credit repair right away.  Try applying for credit and once accounts are open use them sparingly and pay them off on time.  Get a secured loan on a house, car or student loan and at least one credit card or home equity line.  Debts often remain active when they should show as discharged in bankruptcy.  Contact the credit agencies involved to correct these mistakes.

Last Thoughts Regarding Bankruptcy in San Diego

San Diego residents continue to suffer, as the State’s economy struggles to recover.  Decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings.  The U.S. Bankruptcy Court cautions that“Bankruptcy has long-term financial and legal consequences -- hiring a competent attorney is strongly recommended.”Click here to find San Diego attorney resources in your area. 

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in San Diego, CA.