Filing for bankruptcy in San Diego, California may be a good option if you are unable to repay your debts and feel as though no other viable option exists. Depending on the type of debt you possess, all of your debt may be erased after your bankruptcy case is complete. However, before filing for bankruptcy, you should discuss your financial situation with a bankruptcy attorney in San Diego. A bankruptcy attorney in San Diego will examine your financial situation and help you decide whether filing for bankruptcy is right for you.

If you do decide to file for bankruptcy, you and your bankruptcy attorney in San Diego must decide whether you should file for Chapter 7 or Chapter 13 bankruptcy. Both forms of bankruptcy have their advantages and disadvantage, and the best option for you will depend on your eligibility for each type of bankruptcy and whether you would like to maintain your assets. For example, you may prefer to file for Chapter 7 bankruptcy if you do not have a significant number of assets. Chapter 7 bankruptcy is a liquidation proceeding and the Chapter 7 bankruptcy trustee will sell your non-exempt assets to raise funds to repay your creditors. However, your bankruptcy attorney in San Diego will tell you that to be eligible for Chapter 7 bankruptcy you must earn less than the median income for the state of California, or have little disposable income each month. As of 2011, the median income in California is $43,107 for a single individual.

If you are not eligible to file for Chapter 7 bankruptcy, or if you would like to keep your assets, your bankruptcy attorney in San Diego may recommend filing for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, you and your bankruptcy attorney in San Diego will develop a repayment plan and submit the plan for approval to the bankruptcy court. The repayment plan must take a minimum of 3 years to complete, and should be affordable to you based upon your monthly income. In addition, to be eligible for Chapter 13 bankruptcy, you must be able to show the court that you have reliable income for at least 6 months prior to filing for Chapter 13 bankruptcy. After you obtain approval for the plan, you will make monthly payments to your Chapter 13 bankruptcy trustee. Then, the bankruptcy trustee will disperse the funds to your creditors.

Bankruptcy Discharge
The bankruptcy discharge signifies the end of your bankruptcy case. Legally, a discharge means that the debts included as part of your bankruptcy case will no longer be enforceable by your creditors. In other words, the debts are essentially erased. In a Chapter 7 bankruptcy, a bankruptcy discharge usually occurs about 3 to 4 months from the date you filed your initial bankruptcy petition. However, in a Chapter 13 bankruptcy, the court will not grant a bankruptcy discharge until you complete the repayment plan.

Filing for bankruptcy can be a confusing process, and you may have many questions about the bankruptcy procedure. Therefore, contact a bankruptcy attorney in San Diego to answer any questions you have, or visit the United States Bankruptcy Court, Southern District of California’s website http://www.casb.uscourts.gov/.  However, if you are considering filing for bankruptcy without the assistance of an attorney, visit http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankruptcyWithoutAttorney.aspx.