San Diego Bankruptcy Lawyer





 

Call (619) 630-8529 For a Free Consultation

Don’t Be Fooled By The NegativeStereotypes of Bankruptcy

Many people are under the impression that filing for bankruptcy is a negative thing. They feel that people will look down on them and that filing will negatively impact their credit score.

TRUTH IS…yes, filing for bankruptcy is public record; however, most people will not know you filed unless YOU tell them. The average person doesn’t know where to look for bankruptcy filing records and without having a reason to look someone up, they probably wouldn’t snoop around. Additionally, everyone files for bankruptcy in this day and age. From athletes to movie stars, all people can fall on hard times. Think of bankruptcy as a REFINANCING.

TRUTH ABOUT CREDIT SCORE…Let’s be honest, if you are considering filing for bankruptcy you have more than likely been missing credit card payments and can’t pay all your bills. This has a negative affect on your credit; thus, your credit score will already be bad. For MOST people, the credit score is actually higher after bankruptcy. Your score will increase between 100-150 points within the first 12 months after filing. Also, Chapter 7 bankruptcy discharges most of an individual’s debt; this will greatly decrease a person’s debt-to-income ratio (income:minimum payments to creditors). These days, most lenders care more about a person’s debt-to-income than actual credit score.

So in short, bankruptcy is not as negative as you may think and in many circumstances, it will not negatively impact your credit score. If you think bankruptcy could help you, it probably will. Give us a call to set up your free, no obligation, consultation.

If you are:

  • Seriously delinquent on your credit card payments
  • Receiving harassing telephone calls and letters from   debt collectors
  • Being sued by a credit card company
  • In over $10,000.00 worth of debt
  • In foreclosure or have wages being garnished

Bankruptcy can:

  • Stop all telephone calls and letters from debt collectors
  • Stop wage garnishment
  • Stop lawsuits against you
  • Wipe out most kinds of debt and get you a fresh start

Below is a brief overview of the different types of bankruptcies and services that we provide.

Chapter 7 Bankruptcy

General

This bankruptcy is what can be called the “reset button” or the “fresh start”.  It is the most commonly filed bankruptcy.  Essentially when a qualified individual files a Chapter 7 bankruptcy, they are wiping nearly all of their unsecured debts, i.e. credit cards, medical bills, credit collects, etc.

 

Debts Not Dischargeable

Most, but not all debts are dischargeable in bankruptcy.  Debts such as child/spousal support, back taxes for employment wages, debts owed as a result of DUI or wrongful injury judgments, or personal taxes assessed or reassessed less than three years ago.  Note: taxes that were assessed or reassessed more than three years ago are dischargeable.  To learn about the more detailed and comprehensive list of debts not dischargeable, please contact us for a free consultation.

 

Reaffirmation

If you owe money on a car and you file bankruptcy, then pursuant to all car loan contracts, you will be considered in breach of the contract.  This means the lender can come and repossess your car if they wanted too, however they generally do not want to since the value of cars are always less than what one owes.  In this scenario we would recommend that you reaffirm the debt, or negotiate a new contract with the lender.  We would help you renegotiate a new contract and will not advise you to sign a new contract unless the lender concedes and at least reduces your interest rate for you.

 

 

Chapter 13 Bankruptcy 

 

General

This Chapter is more commonly known as the payment plan bankruptcy.  In order to qualify one must at least be a wage earner.  A Chapter 13 payment plan can help you pay back any secured debt that your are behind on, such as mortgages or car payments.  Then the plan will also pay back a portion of your unsecured debt.  A Chapter 13 plan is either 3 or 5 years.  p

 

Lien Strip the Second Mortgage

Mostly everyone’s home is underwater, in that the amount of debt in their home is more than the value of their home.  If the amount you owe on your first mortgage is more than the value of your home and you have a second mortgage, we can essentially “lien strip” the mortgage.  What that means is we would file a motion with the court and ask them to treat your second mortgage as unsecured because you owe more on the first mortgage than your second.  If the court approves our motion, your second mortgage will be treated as unsecured and upon completion of your Chapter 13 bankruptcy, you will not owe on your second mortgage and the second mortgage lender will not hold any interest on your home.

 

Cram Downs

If you owe money on your car, we may be able to cram down the amount you owe on the car.  What that means is we can essentially make the payments of your car through the plan and utilize the power of bankruptcy to force the lender only to accept the value of your car the day of filing bankruptcy as opposed to the actual balance that you owe.

 

 

GET A FRESH START TODAY!

Contact Seneca Law Group for a FREE CONSULTATION.

We can start the process for little or no money down!

(619) 630-8529


**The above is just a general over view of the complicated bankruptcy process.  If you have any questions, concerns, inquire as to qualification, then I highly suggest you contact Seneca Law Group for a free initial consultation where we can give you more information on the entire process and answer any questions you may have specific to your particular circumstances.  Seneca Law Group has seen at least fifty or more Chapter 7 bankruptcies to a successful discharge.  We are confident we can help you achieve the same “fresh start”!  We can immediately start your bankruptcy with as little as $100 down.