San Diego Bankruptcy Lawyer

Bankruptcy isn’t as bad as You Think

Many people are under the impression that filing for bankruptcy is a negative thing. However, it’s really not. Since the economy tanked, millions of people where forced to file. In fact, bankruptcy is now very common. BANKRUPTCY WON’T RUIN YOUR CREDIT FOREVER Chapter 7 bankruptcy remains on your credit for 10 years and Chapter 13 remains on your credit for 7 years. If your credit score is already low, you will actually see a 100-200 bump in your credit score after bankruptcy. If you credit score is high you will see your credit score drop. Either way, you want to immediately begin rebuilding your credit as soon as you are out of bankruptcy.

YOU CAN STILL BUY A HOME The most common concern I get is how bankruptcy will effect your ability to buy a home. In fact, mortgage brokers have said, that as long as your income level and down payment is sufficient, a person can qualify for a home loan just two years after a chapter 7 bankruptcy (just one year after chapter 13 bankruptcy). Timing is everything. If you file a bankruptcy, it will get rid of your debt within a 4-6 month period and that bankruptcy will remain on your credit report for 10 years. Compare that to how long it will take you to pay off that debt given your minimum payment and interest rate, save for a down payment on a home, and then have the good credit to buy a home. If the bankruptcy will shorten the time it takes for you to achieve your financial goals, then of course it’s going to be the best option!

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

Call (619) 630-8529 now. You’ll be glad you did.

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.


Contact Seneca Law Group for a FREE CONSULTATION. We can start the process for little money down! Difficulty traveling? We can do nearly the entire process remotely!

CALL (619) 630-8529

**The above is just a general overview 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”!

Click here for a Free Bankruptcy Consultation