Getting your bankruptcy questions answered by knowledgeable San Diego bankruptcy attorney, Scott Orona, is an important first step in the bankruptcy process. You can get immediate answers by calling 619-306-7627 to schedule your free hour long consultation with Attorney Orona.

Below are responses to some of the most common questions about San Diego bankruptcy.

Why should I file for bankruptcy?

Bankruptcy is meant to give a fresh start to people who have lost control of their debt and have no reasonable way of regaining their financial footing. You may need to file for bankruptcy as a result of unforeseen medical expenses, extended unemployment, or after purchasing a house that loses significant value. Bankruptcy might also be an appropriate choice after making poor financial decisions or losing money in a business venture. Bankruptcy doesn’t have to be the end of the line for anyone. Instead, it is a chance to start over.

Can bankruptcy stop foreclosure?

In certain cases filing for bankruptcy can keep your home from being foreclosed. If you file for Chapter 13 bankruptcy, you can create a repayment plan with the help of San Diego bankruptcy lawyer Scott Orona that will allow you to retain your property while repaying your debts according to a strict schedule. Chapter 13 is a desirable choice for people who are underwater financially but still have a steady form of financial income.

Why should I hire a bankruptcy lawyer?

A San Diego bankruptcy attorney can help you understand the ins and outs of bankruptcy law. By providing you with legal counsel, answering all of your questions, and advocating on your behalf in bankruptcy court, a bankruptcy lawyer can help ensure that your bankruptcy proceedings are handled professionally and according to the law.

Will my debt get erased?

If you file for Chapter 7 bankruptcy, your unsecured debts will be discharged after you complete the process. However, certain types of debt cannot be discharged by Chapter 7 or Chapter 13 bankruptcy. Debts that are not dischargeable include student loans, alimony payments, child support payments, and tax obligations. Common unsecured debts such as credit card debt, on the other hand, can be eliminated by Chapter 7.

What's the difference between Chapter 7 and Chapter 13?

Chapter 7 and Chapter 13 are both types of consumer bankruptcy. Chapter 7 bankruptcy is for people who do not have regular income or who are struggling to pay their bills. People prefer this type of bankruptcy because it leads to the discharge of their unsecured debts. Chapter 13 bankruptcy is an ideal choice for people who wish to repay the debts they owe over a period of 3 to 5 years and who wish to remain in possession of their assets. It is important to note that qualifications for Chapter 7 have become quite strict which is why many people must consider filing for Chapter 13 instead.

What is the means test?

The means test is an application requirement for Chapter 7 bankruptcy. If you make more than a certain amount of money, you may not qualify for Chapter 7 protection. In this case you may wish to file for Chapter 13 bankruptcy instead.

Can debt collectors contact me once I file for bankruptcy?

Filing for bankruptcy puts an automatic stay on all of your debts. This means that your creditors cannot contact you in any way during your bankruptcy proceeding. Additionally, once your unsecured debts are discharged, your creditors will not be able to contact you about past debts that you may owe.

If you have more bankruptcy questions, contact the office of Scott Orona today by calling 619-306-7627 to arrange your free initial case evaluation.