Personal Bankruptcy in Escondido

You should never be embarrassed about declaring bankruptcy. In these tough economic times, there is nothing wrong with getting a fresh start and rebuilding your life. To help you consider all of the alternatives, contactEscondido bankruptcy attorney, Marc A. Duxbury, Attorney at Law.

Chapter 7 in Escondido

Called the fresh start bankruptcy, filing Chapter 7 is a way to wipe the slate clean of medical bills, credit card debt, and other unsecured debts—those debts not associated with collateral such as a house or car. This is an especially good option for people who are unable to keep up with bills due to unemployment, catastrophic illness, and other major disruptions in their lives.

Filing Chapter 7 assumes that you are unable to handle these debts, even with a structured payment plan. It is important to note that there are debts that cannot be discharged through bankruptcy proceedings such as mortgage payments, court fines, child support payments, student loans, and other debt. Personal bankruptcy lawyer Marc Duxbury can advise you regarding these exceptions.

Alternatives to Chapter 7 Bankruptcy

Before filing Chapter 7 you should consider the alternatives. While Chapter 7 can provide relief from your debts, there may be other options such as:

  • Out-of-court settlement
  • Debt counseling services
  • Debt consolidation loans

Also, consider that under The Bankruptcy Code, several conditions make the successful filing of Chapter 7 unlikely:

  • Individual debtors who have regular income may seek an adjustment of debts under Chapter 13.
  • Chapter 13 provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to catch up on past due payments through a payment plan.
  • The court may dismiss a Chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of Chapter 7.

If it is determined that you are not eligible for any of the above alternatives, then declaring Chapter 7 bankruptcy in Escondido, Carlsbad and Temecula may be your best option.

Unlike Chapter 13, Chapter 7 does not involve a payment plan. Instead the trustee gathers and sells the debtor’s non-exempt assets and uses the proceeds of these assets to pay the creditors. The Bankruptcy Code allows the debtor to keep certain exempt assets. However, the trustee will liquidate the debtor’s remaining property.

Free consultation

If you are thinking about declaring personal bankruptcy in Escondido, Carlsbad and Temecula, contact Marc A. Duxbury, Attorney at Law for a free consultation at: (760) 438-5291 or toll free at (877) 817-7373.