If you have considered filing for bankruptcy, but you do not know where to start, you should contact a bankruptcy attorney in San Jose. A bankruptcy attorney in San Jose can help you decide whether filing for bankruptcy is right for you. A bankruptcy attorney in San Jose will carefully review your situation, and offer advice regarding whether you should file for bankruptcy and what type of bankruptcy is right for you.
For example, if you have primarily unsecured debt, like credit card debt, filing for bankruptcy may greatly benefit you. However, if your debt largely includes student loan debt or family support obligations, like child support, bankruptcy will not discharge these debts.

Choosing the Right Bankruptcy for You
If you file for bankruptcy in San Jose, California, you will have the option of filing for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is often referred to as a straight bankruptcy because your non-exempt assets are seized and sold by your Chapter 7 trustee to repay your creditors. If you would like to file for Chapter 7 bankruptcy, your bankruptcy attorney in San Jose will determine your eligibility. To be eligible to file for Chapter 7 bankruptcy in San Jose, you must earn less than the median income for the state of California, or have very little disposable income each month. As of 2011, the median income for the state of California is $43,107 for a single individual. Therefore, if you earn more than $43,107 a year, you may be ineligible to file for Chapter 7 bankruptcy unless your disposable income is very low. Disposable income is income you have remaining each month after paying all necessary expenses, like rent and your utility bills. Your bankruptcy attorney in San Jose will calculate whether you are eligible to file for Chapter 7 bankruptcy using the means test.

If you are not eligible for Chapter 7 bankruptcy, your bankruptcy attorney in San Jose may recommend that you file for Chapter 13 bankruptcy. Chapter 13 bankruptcy creates a repayment plan, which lasts between 3 to 5 years. During the plan you will make one monthly payment to your Chapter 13 bankruptcy trustee, who then disburses the funds to all of your creditors. It is the Chapter 13 trustee’s duty to ensure that you make all payments on time and in full each month. However, to be eligible for Chapter 13 bankruptcy, you must be able to show the court that you have regular and reliable income.

Avoiding a Dismissal of Your Case
A dismissal of your bankruptcy case means that you will not receive a bankruptcy discharge, and you case will not be completed. Throughout your bankruptcy case, your bankruptcy attorney in San Jose may caution you against doing anything that may cause the dismissal of your case. For example, a bankruptcy court may dismiss your Chapter 13 bankruptcy for failing to make a monthly payment to your bankruptcy trustee on time. In addition, things that you did prior to filing for bankruptcy can affect your bankruptcy case as well. Therefore, it is extremely important to discuss your complete financial situation with your bankruptcy attorney in San Jose prior to filing for bankruptcy.

If you are considering filing for bankruptcy in San Jose, contact an experienced bankruptcy attorney in San Jose as soon as possible, or visit the United States Bankruptcy Court, Northern District of California’s website http://www.canb.uscourts.gov/faqs/faq-general-bankruptcy. If you are filing for bankruptcy without the assistance of an attorney, visit http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankruptcyWithoutAttorney.aspx for additional information regarding how to file for bankruptcy on your own.