San Jose Bankruptcy Lawyers

Silicon Valley Not Immune to Economy’s Woes

San Jose’s residents are filing for bankruptcy at record levels.  Bankruptcies filed in 2008 hit record levels with over 133,000 in California alone, and over 95% of those filed by consumers. 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.  If you’re considering bankruptcy, know the facts to avoid costly mistakes.

San Jose Bankruptcy Legal Advice

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 Jose law firm with specific long-term experience in San Jose bankruptcy matters.  A competent San Jose 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.  

Major Changes Made in 2005 Will Impact your San Jose Bankruptcy

Because of bankruptcy filing abuses, the law was changed in 2005 to include the following:

• Required pre-bankruptcy counseling
• Strict guidelines to qualify for a Chapter 7 filing (liquidation proceeding) including a “Means Test” to determine your ability to pay debts
• Tight restrictions on repeat filers
• Random audits to verify accuracy of bankruptcy filing
• Enhanced oversight for Chapter 11 (reorganization) small business cases

Filing a Chapter 13 Bankruptcy in San Jose

Generally, all consumers considering bankruptcy in San Jose will file either a Chapter 7 (liquidation) or Chapter 13 bankruptcy.  Chapter 13 provides for your creditors to be paid back all or a portion of the debt owed, over a period of three to five years.  Chapter 13 is often used in San Jose to prevent a foreclosure of a home or repossession of a car.  San Jose filers who do not pass the Chapter 7 “means test” will be required to file Chapter 13 or remove themselves from the bankruptcy process entirely. 

Exemptions – Which Property is Exempt in San Jose?

Certain property, or values of property, is exempt from being included in the debtor’s estate and these exemptions vary from state to state.  Some states have their own set of exemptions which replace the federal list, and other states allow you to choose between the state and federal list of exemptions.  The exemptions, which change frequently, vary widely from jurisdiction to jurisdiction and understanding your options is a very important aspect of evaluating your position.

Take Appropriate Steps Now If You are Considering Filing for Bankruptcy in San Jose

San Jose 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 Jose 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 Jose, CA.