California Bankruptcy

When faced with financial hardship in California, it can be confusing and stressful trying to determine what your best options are for recovery. Bankruptcy sounds like a scary option, but in many cases it is the most efficient and effective way to cancel your debts and get back on your feet financially.

Bankruptcy was written into federal law in order to help individuals and businesses recover when they have accumulated more debt than they are able to reasonably pay off. Bankruptcy is a way of canceling or restructuring unsecured debt so that consumers and company owners can have a chance at a better financial future. Certain debts cannot be canceled by bankruptcy, such as child support payments, alimony payments, and student loan debt. However, with the help of San Diego bankruptcy lawyer, Scott Orona, filing for bankruptcy can help you get a handle on your debt and return to a level of security.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is one form of consumer debt relief and is the most common type of bankruptcy in the United States. Chapter 7 is a way for people who do not have a steady source of income or who are facing economic hardships to eradicate their unsecured debts and stop being harassed by their creditors. Chapter 7 bankruptcy stays on your credit report longer than the other type of consumer bankruptcy, Chapter 13, but it also allows people to cancel some or all of their debt in minimal time. A Chapter 7 bankruptcy proceeding usually lasts four months, after which time your past creditors will no longer be able to contact you regarding your old debts. Once you have completed San Diego Chapter 7, your debt will be eliminated and you will have a fresh start.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is designed for people who have a steady source of income but do not make enough money to keep up with their bills or who wish to repay their debt so they can hold onto their assets. Through Chapter 13 bankruptcy, San Diego bankruptcy attorney, Scott Orona, can help a person in debt create a budget conscious repayment plan that will pay off his or her bills over the course of three to five years.

Keep in mind, your property is better protected under Chapter 13 bankruptcy than it is under Chapter 7 bankruptcy, and Chapter 13 does not stay on your credit report as long as Chapter 7. Chapter 13 bankruptcy can provide a great deal of financial relief and make it much easier to repay debts according to a structured plan.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is an option for companies that are facing financial challenges and wish to reorganize to address debt. A business doesn’t have to close its doors in order to qualify for Chapter 11 bankruptcy. In many cases Chapter 11 can be used to restructure a company’s debt so that they are able to stay in business and later thrive. San Diego bankruptcy attorney, Scott Orona, can help business owners determine if Chapter 11 is the right option for their organizations and long-term revenue goals.

Many Benefits of Bankruptcy

There are a number of benefits of bankruptcy that an attorney such as Scott Orona can help you understand including debt relief and the chance to start over. Yet, bankruptcy is not a simple matter and it should not be entered into lightly. If you determine that bankruptcy is the best method for getting a handle on your debt, Attorney Scott Orona can help see you through the process.

Learn more about the potential benefits of bankruptcy in a free one hour consultation with Attorney Orona. Call 619-306-7627 today to schedule your initial case evaluation so you can learn what options you have to confront your debt once and for all.