El Cajon San Diego Bankruptcy Lawyer
Free consultations -- (619) 787-3456
El Cajon, La Mesa, Santee, Lemon Grove, and other communities in the East County region of San Diego County are facing unprecedented economic distress. Employees returning to work after the pandemic are coping with staggering debt that accumulated while they were staying home. Less fortunate employees have been unable to return to work due to business closures and workforce reductions.
Even before the pandemic, many East County residents were struggling to cope with credit card debt and uninsured medical bills. For some, the threat of evictions and foreclosures has produced health-threatening levels of stress.
Many individuals, married couples, and small business owners are turning to bankruptcy for debt relief. A form of bankruptcy known as Chapter 13 allows debtors to avoid foreclosure or repossession by catching up on delinquent payments to secured creditors. Other debtors choose to file a Chapter 7 bankruptcy to wipe out most or all their debt.
Either form of bankruptcy results in an immediate court order that puts an end to annoying phone calls from debt collectors. East County residents can consult with a El Cajon Bankruptcy Lawyer Michael Rehm to decide whether a Chapter 7 or 13 bankruptcy offers the debt relief they need.
Debt Liquidation in San Diego County's East County Region
People who have average, moderate, or no income will usually be eligible for a Chapter 7 debt liquidation. With the exception of child support and a few other categories of debt, a Chapter 7 completely erases debt.
Secured creditors are typically entitled to take the property that secures their loans, although some debtors can arrange to keep a vehicle that is secured by a car loan. While debtors may need to turn over property of unusual value to a bankruptcy trustee, most people who file under Chapter 7 keep all of the property that they did not purchase with a secured loan.
Small business owners who have incorporated their businesses can usually decide to walk away from their business — and their business debt — by surrendering their business assets and filing a Chapter 7 bankruptcy. Business owners who guaranteed a debt may want to file an individual bankruptcy under Chapter 7 or Chapter 13 to address personal debts.
Debt Repayment in San Diego County's East County Region
Individuals with regular income from any source, including unemployment compensation, may benefit from a Chapter 13 debt repayment plan. Under the supervision of a bankruptcy court, a Chapter 13 debtor makes current payments to secured creditors.
A fixed sum is deducted from the debtor's income. A bankruptcy trustee uses that amount to catch up on the debtor's delinquent payments to secured creditors. Unsecured creditors usually receive only a portion of their debt.
A Chapter 13 plan allows homeowners to avoid foreclosure. If the plan is filed before eviction proceedings begin, it can help renters avoid eviction.
Chapter 13 plans last for three to five years. When the plan ends, the debtor is current on secured debt. All unsecured debt, including credit card and medical debt, is erased.
Whether Chapter 13 is the right choice for you will depend on your circumstances. La Mesa Bankruptcy Attorney Michael Rehm can give you the help you need to make a fresh start. Call (619) 787-3456 for a free, confidential consultation.
East County San Diego Bankruptcy Resources: