If you currently live and have lived in California for the last 180 days or, have a business or property in California, then you will probably be able to file for bankruptcy in California. Additionally, if you have not filed a Chapter 7 bankruptcy in the last 8 years, then you are most likely eligible to file. If you have filed for Chapter 7 bankruptcy in the past 8 years you most likely are eligible to file for Chapter 13 bankruptcy, which would allow you to reorganize your debts and keep your property.
Now that you’ve determined if you can file for bankruptcy, then next question to ask is if you should file for bankruptcy. Bankruptcy might be suitable for you if you find yourself with little to no disposable income, or negative disposable income each month. Disposable income is the money you have left over each month after paying your living costs and debts.
Sometimes, events outside of our control can force people into filing for bankruptcy. You may find yourself suffering from an unforeseen event which has either reduced your income each month, or experienced and increase in expenses and/or debt. With the recent COVID-19 / corona virus events you may have experienced a loss of income or increase in your expenses. Examples events that can put pressure on your disposable income include:
If one of these events has put stress on your disposable income, bankruptcy might be a viable option, and would allow you to get a fresh start.
If you’re feeling stressed or helpless regarding your financial situation, you benefit by:
This question is difficult to answer without fully analyzing your income, assets, and debts, but in most cases, you will be able to keep your car and personal belongings. If you’re interested in a free consult to talk about your unique situation, simply fill out the form below.
If you’re already finding yourself behind in your bills or are being hounded by creditors, you might not be able to borrow more money anyways. Bankruptcy can help clear away the ‘dead wood’ of your outstanding debt. This will give you breathing room to re-build your credit. Your credit will NOT be gone or vanish forever. After a few years you’ll have established a much higher credit score.
If you have questions about filing for bankruptcy, please contact us by giving us a call or filing out the form below so that you can speak directly with an attorney regarding your situation. Our goal is to answer your questions and provide our clients with a smooth, painless filing process.