broken piggy bank over pile of cash

What is bankruptcy?

Bankruptcy is about imposing financial order by getting rid of debts and preserving assets to give you a fresh start. We help individuals, families and small businesses by filing Chapter 7and Chapter 13 bankruptcy. No matter which chapter you file, please read the do’s and don’ts of bankruptcy, as well as myths surrounding bankruptcy.

Before discussing bankruptcy any further, let us share the number one mistake we see with those who need to file: waiting too long. Whether it is fear of confronting their financial circumstances, paralysis by analysis or good old fashioned procrastination, time is the enemy. The longer clients wait, the more often they get sued by creditors, homes are foreclosed, they liquidate retirement savings and make things more complicated and expensive.

Please don’t make this mistake or make it any worse by delaying. If you are in financial distress, call us at 415-963-4004 to schedule a consultation.


Difference between Chapter 7 and Chapter 13 bankruptcy

Chapter 7 is often referred to as a straight bankruptcy or liquidation. The term “liquidation” makes many people believe that they will lose their belongings. In California, however, we can exempt and keep a certain amount of property, including your retirement, home, jewelry and cars. Most clients keep everything. For the majority that file Chapter 7, from the day they file until their debts are forgiven, their case is concluded in less than 100 days.

Chapter 13 is a reorganization and repayment of some of your debts. Despite a common misconception, most people that choose this chapter of bankruptcy do not repay 100% of their debt. Most Chapter 13 cases last 36 or 60 months. You pay a monthly payment based on your income and expenses or total assets. Suppose your 36 month Chapter 13 plan includes paying mortgage arrears, back taxes, and 10% of your total credit card debt. At the conclusion of your Chapter 13, you will be current on your mortgage and taxes, and the remaining 90% of credit card debt is forgiven.

We will help guide you through which Chapters of bankruptcy apply and benefit you the most. Or if bankruptcy is not a good alternative, we’ll explain that as well. Contact a San Francisco Bankruptcy Attorney from JC Law Group PC at 415-963-4004 to discuss options. We have offices in San Francisco and San Mateo. You can learn more about our consultation here.

photo by: 401(K) 2012
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