North County San Diego Bankruptcy Attorney -- Oceanside Bankruptcy Lawyer
Free Consultations -- (619) 787-3456
North County is famous for its stunning beaches and Torrey Pines golf course, as well as the lifestyle communities of Encinitas, Carlsbad, Del Mar, Rancho Santa Fe, and Solana Beach. Most residents of cities along Highway 78, including Oceanside, Vista, San Marcos and Escondido, have until recently enjoyed a nourishing middle-class life.
The pandemic and its impact on the economy caused serious harm in North County. Apart from the pandemic's health consequences, the rising unemployment rate has left families burdened by debt. Savings and investment accounts are dwindling. Some families are at risk of foreclosure. Others do not know how to pay their credit card and medical bills.
Debt relief can take many forms. In some cases, bankruptcy is the only answer. A small incorporated business that will be unable to reopen may need to file a Chapter 7 bankruptcy to liquidate its debt. Families at risk of foreclosure may find it advisable to file a Chapter 13 bankruptcy to save their homes.
North County residents can obtain advice about the best approach to debt relief by consulting with Oceanside Bankruptcy Lawyer Michael Rehm. Since planning for a bankruptcy can lead to better outcomes, it makes sense to get advice before debt becomes completely unmanageable.
Repaying Debt Through Chapter 13 in the San Diego North County Region
Foreclosures are the most frightening economic threat that working families face. When at least one family member still has a regular source of income, even from unemployment compensation, a Chapter 13 plan can help families avoid foreclosure.
The bankruptcy court will order a halt to foreclosure proceedings as soon as a Chapter 13 petition is filed. The debtor then proposes a plan to continue making monthly mortgage payments while catching up on delinquent payments over a period of three to five years. Debtors stop paying credit card and medical bills, so they have some extra money to devote to their missed mortgage payments.
A Chapter 13 can be used to avoid repossessions of other secured property. When it is filed before eviction proceedings start, a Chapter 13 can also help renters avoid eviction. When the plan ends, any unsecured debt that was not paid through the plan is erased, while debtors are current on their secured debt.
Liquidating Debt Through Chapter 13 in the San Diego North County Region
Debtors with low and moderate incomes who have not purchased property with a secured loan, or who do not want to keep their secured property, can wipe out their debt with a Chapter 7 bankruptcy. Owners of small corporations and limited liability companies can also walk away from a failed business by using Chapter 7.
While the bankruptcy trustee can take possession of a debtor's assets after a Chapter 7 bankruptcy is filed, most assets owned by ordinary people are exempt. In most chapter 7 bankruptcies, debtors keep everything they own.
In some cases, debtors can make an agreement to keep paying a mortgage or other secured loan while wiping out their unsecured debt, subject to the bankruptcy court's approval. North County San Diego Bankruptcy Lawyer Michael Rehm can help debtors decide which form of bankruptcy best meets their needs. For a free consultation, call (619) 787-3456 to determine the best course of action for your matter.
North County San Diego Bankruptcy Resources: