Discussing your financial situation with a bankruptcy attorney in San Francisco can help you decide whether you should consider filing for bankruptcy. For example, if you have primarily unsecured debt like credit card debt, filing for bankruptcy may erase the majority of your debt. However, if your debt largely includes student loan debt or family support obligations, like child support, bankruptcy will not discharge these debts. Therefore, a bankruptcy attorney in San Francisco may recommend that you consider other options. However, a bankruptcy attorney in San Francisco will carefully review your situation, and offer advice regarding whether you should file for bankruptcy.
 
Choosing the Right Bankruptcy
In San Francisco, you have the option of filing for Chapter 7 or Chapter 13 bankruptcy.  Chapter 7 bankruptcy is referred to as a straight bankruptcy and involves selling your non-exempt assets to repay your creditors in order of their priority. However, to be eligible to file for Chapter 7 bankruptcy in San Francisco, you must earn less than the median income for the state of California. If you do not meet this requirement, you must have little disposable income each month. Disposable income is income you have remaining each month after paying all necessary expenses, like your rent, reasonable car payment and utility bills. Generally, the less disposable income you have each month, the more likely you are to be eligible for Chapter 7 bankruptcy. However, your bankruptcy attorney in San Francisco will calculate whether you are eligible to file for Chapter 7 bankruptcy using the means test prior to filing the bankruptcy petition.
 
If your bankruptcy attorney in San Francisco determines that you are not eligible to file for Chapter 7 bankruptcy, or you would like to keep your assets following your bankruptcy, you should discuss filing for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, you make monthly payments to a Chapter 13 bankruptcy trustee for the life of your Chapter 13 repayment plan. The repayment plan typically takes 3 to 5 years to complete and must first be approved by the bankruptcy court. If you make all payments on time and in full throughout the plan, you will receive a bankruptcy discharge at the completion of the plan. 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
Throughout your bankruptcy case, your bankruptcy attorney in San Francisco may caution you from doing anything that may cause the dismissal of your case. For example, a bankruptcy court may dismiss your Chapter 13 bankruptcy case 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. For example, if you transferred assets to a family member or friend prior to filing for bankruptcy, the bankruptcy court may dismiss your case due to a voidable transfer. Therefore, it is extremely important to discuss your complete financial history with your bankruptcy attorney in San Francisco prior to filing for bankruptcy. 
 

You may have several questions regarding the bankruptcy process and how the bankruptcy will affect your credit score long term. Therefore, if you are considering filing for bankruptcy in San Francisco, contact an experienced bankruptcy attorney in San Francisco 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 considering 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.