El Cajon Bankruptcy Attorneys
Find Relief from Debt with Expert Bankruptcy Legal Assistance
Many people find themselves in difficult financial situations due to circumstances beyond their control. If you are feeling overwhelmed by debt, you may need the help of a bankruptcy attorney in El Cajon, CA. Our law firm has 40 years of experience helping clients file for bankruptcy in California. The Law Offices of Andrew H. Griffin III offer consultations, and we will work with you to find the best solution for your situation.
What Happens When You File for Bankruptcy?
Filing for bankruptcy can provide you with a fresh start and relief from your debts. By filing for bankruptcy, you could eliminate some of your debts or pay down a portion over time. It will also grant you an automatic stay, which will prevent creditors from collecting. There will also be a block on any garnishments or attempts to remove money from your bank account or any other assets. Filing for bankruptcy allows you to work with both creditors and the court to determine your repayment plan and next steps.
Ready to Start Fresh?
Call tel:(619) 853-3009 now to schedule your free consultation with our experienced bankruptcy attorneys. Let us guide you to a debt-free future.
Types of Bankruptcy
Our El Cajon law firm provides counsel for all bankruptcy types:
- Chapter 7
- Chapter 11
- Chapter 13
Read Bankruptcy Attorney Andrew H. Griffin, III, APC books titled:
How Bankruptcy Affects Your Credit
Filing for bankruptcy can have a significant impact on your credit score. It’s important to understand both the short-term and long-term effects:
- Immediate Impact on Your Credit Score: Bankruptcy will typically cause a sharp drop in your credit score. The exact decrease depends on your current credit situation, but it can be substantial.
- Bankruptcy on Your Credit Report: A bankruptcy filing will appear on your credit report for 7 to 10 years, depending on the chapter of bankruptcy you file. This can make it difficult to secure new loans or credit during that time.
- Future Borrowing: After bankruptcy, lenders may view you as a high-risk borrower, and it may be harder to get approval for mortgages, car loans, or credit cards. If approved, you may face higher interest rates.
Tips to Rebuild Credit After Bankruptcy:
- Monitor Your Credit: Regularly check your credit report to ensure accuracy and stay on top of your financial progress.
- Make Payments on Time: Timely payments on your remaining debts are crucial in rebuilding your credit.
- Get a Secured Credit Card: Secured credit cards can help rebuild credit if used responsibly.
- Keep Credit Utilization Low: Try to keep your credit card balance below 30% of your available credit.
Eligibility for Bankruptcy
To file for bankruptcy, you must meet specific eligibility criteria, which vary based on the chapter you are filing under:
Chapter 7:
- Income requirements: Your income must be below the state median or pass the "means test," which compares your income to the median income in your state.
- You must have limited disposable income after essential expenses.
Chapter 13:
- Income requirements: You need a regular income to repay a portion of your debt over 3 to 5 years.
- Debt limits: Your secured debts must be under $1.2 million, and unsecured debts must be under $400,000.
Chapter 11:
- Designed for businesses but also available to individuals with high debts.
- No specific debt limit, but the filing process is more complex and costly.
The Bankruptcy Process
Filing for bankruptcy involves several key steps:
- Preparing Your Petition: You will need to gather all your financial documents, including income, debts, and assets, and fill out the bankruptcy forms.
- Filing with the Court: Once your petition is complete, you file it with the bankruptcy court.
- Automatic Stay: Once filed, creditors must stop contacting you, including halting garnishments, repossessions, and lawsuits.
- Meeting of Creditors: After filing, you will attend a meeting with the bankruptcy trustee and your creditors, where you will answer questions about your finances.
- Discharge of Debt: If the court approves your bankruptcy, your qualifying debts will be discharged, meaning you are no longer responsible for paying them.
Bankruptcy Alternatives
Before choosing bankruptcy, there are several alternatives you may want to consider:
- Debt Settlement: You negotiate with creditors to settle your debts for less than you owe. This option can reduce your total debt but may affect your credit score.
- Debt Consolidation: This involves combining multiple debts into one, typically through a loan with a lower interest rate. It simplifies payments but doesn’t eliminate debt.
- Credit Counseling: A credit counselor can help you create a repayment plan and work with creditors to reduce your monthly payments or interest rates.
These alternatives might be appropriate if your debt is manageable and you prefer to avoid the long-term consequences of bankruptcy. However, they may not provide the same level of protection from creditors or eliminate debt like bankruptcy can.
Chapter 7 Bankruptcy Lawyer in San Diego County
What most sets our firm apart is our constant communication. Our staff speaks both English and Spanish to better serve a diverse clientele. We've been in practice since 1983 and have helped countless clients seek relief from crushing debt. Our clients find it easy to reach whomever is working on their case, and we send frequent case updates to keep them in the loop. All documents pertaining to a client's case are immediately accessible to them, so they always know where their case stands. It's practices like these that help our clients experience genuine financial peace. When you need the leading bankruptcy attorneys in El Cajon, CA turn to our team.
How Bankruptcy Can Improve Your Credit Score
Many people assume that filing for bankruptcy will severely damage their credit score. While it is true that bankruptcy will appear on your credit report for several years, it can also provide a fresh start for your finances and actually improve your credit score in the long run.
Here are a few ways that bankruptcy can help improve your credit score:
- Elimination of debt: Bankruptcy can discharge many types of unsecured debt, such as credit card balances and medical bills. By eliminating these debts, you can improve your debt-to-income ratio, which is a key factor in determining your credit score.
- Rebuilding credit: After filing for bankruptcy, you can begin rebuilding your credit by applying for secured credit cards or loans, which require a deposit or collateral. By making timely payments on these accounts, you can establish a positive payment history and boost your credit score.
- Reduced risk: Lenders and creditors view bankruptcy as a way to reduce the risk of lending to you. Since you are no longer burdened by unmanageable debt, you are seen as a more reliable borrower and may be eligible for lower interest rates and better loan terms.
If you are considering bankruptcy as a way to improve your financial situation, contact our El Cajon bankruptcy attorneys today to schedule a consultation and learn more about your options.
The Three Types of Bankruptcy
- Chapter 7 bankruptcy is the most common type. It allows you to discharge most of your debts, including credit card debt, medical bills, and personal loans. To qualify for Chapter 7 bankruptcy, your income must be below the median for California, which currently stands at $38,576.
- Chapter 11 bankruptcy is typically used by businesses that want to reorganize their finances. However, individuals can also file for Chapter 11 bankruptcy if they meet certain requirements.
- Chapter 13 bankruptcy allows you to consolidate your debts and pay them off over 3-5 years with a single monthly payment. This type of bankruptcy is available to people with a steady income, so it is sometimes called the "wage earner's bankruptcy."
Our El Cajon bankruptcy law firm understands filing for bankruptcy can be a difficult decision. Our goal is simple: help our clients find the type of bankruptcy that is best suited to their situation. Every client's circumstances are unique, so to find the best solution for their needs, our team bankruptcy law firm offers consultations to help debtors weigh their options.
Local Bankruptcy Solutions in El Cajon, CA
Navigating financial difficulties in El Cajon can be particularly challenging, especially with the high cost of living in San Diego County. Our law firm understands the unique economic pressures residents face in this area. Whether you're dealing with mounting medical bills from Sharp Grossmont Hospital or struggling to keep up with mortgage payments in neighborhoods like Fletcher Hills or Rancho San Diego, we are here to help you find a path to financial stability.
We are well-versed in the local resources available to El Cajon residents. For instance, the City of El Cajon offers various community support programs that can provide temporary relief while you work through your financial issues. Additionally, the San Diego County government provides access to financial counseling services that can complement the legal guidance we offer.
One of our clients' most common pain points is the constant harassment from creditors. We know how stressful it can be to receive relentless calls and letters demanding payment. By filing for bankruptcy, you can benefit from an automatic stay, halting all collection activities immediately. This legal provision is particularly beneficial for those in El Cajon who are facing wage garnishments or the threat of foreclosure.
Call (619) 853-3009 today to schedule a consultation with our El Cajon bankruptcy attorney!
