Why People May Need A Bankruptcy Attorney In San Diego
- By Phoenix Delray
- Published 12/12/2011
- Legal
- Unrated
People who are in debt and can see no way out may want to talk to a bankruptcy attorney in San Diego. This type of proceeding may or may not be suitable for everyone but getting a consultation can help people decide what course of action they want to take.
There are many misconceptions about this type of legal proceeding. Some feel that this causes permanent damage to ones credit score. The fact is that while it can impact ones ability to obtain credit for a while, it will eventually drop off the history. It may cause the person to have to accept loans with higher interest rates for up to ten years but this problem does not last forever. It may impact the persons ability to get other credit but generally does not stop them from getting it.
Those who owe the IRS back taxes will not be able to have them discharged in this process. If there are other debts, such as back child support and alimony, these cannot generally be done away with either. There are some exceptions about alimony depending on how it is paid but child support debt is never discharged.
When people consult an attorney about bankruptcy information, they need to provide all the details of their financial life. There is nothing to be gained by hiding anything no matter
if they feel it is embarrassing or have other problems revealing it. In order to get the best result for clients, the attorney must know exactly what kind of debt the client has.
There are several types of these proceedings and they are used different ways. One is for personal debt such as car loans, credit card debt, home mortgages, medical bills, and other consumer debt. The other type is used by businesses that have undergone financial difficulties. Sometimes the processes require giving up personal possessions along with a repayment plan for all or some of the debt. Sometimes the way the process works is to allow for the restructuring of debt so that it is possible for a company to continue without going out of business completely.
Sometimes filing bankruptcy is not the only option. A lawyer can advise the client on whether or not this is a suitable thing for them. They may be able to suggest things that have a lesser impact such as debt negotiation with creditors or a referral to a debt counseling agency. Much will depend on the specific situation. Those who are able to find other solutions may want to look at them. These solutions may have a lesser long term impact to ones credit score. There may be reasons to prefer one way of debt resolution to the other. A bankruptcy attorney in San Diego can provide guidance about what a client should do.
There are many misconceptions about this type of legal proceeding. Some feel that this causes permanent damage to ones credit score. The fact is that while it can impact ones ability to obtain credit for a while, it will eventually drop off the history. It may cause the person to have to accept loans with higher interest rates for up to ten years but this problem does not last forever. It may impact the persons ability to get other credit but generally does not stop them from getting it.
Those who owe the IRS back taxes will not be able to have them discharged in this process. If there are other debts, such as back child support and alimony, these cannot generally be done away with either. There are some exceptions about alimony depending on how it is paid but child support debt is never discharged.
When people consult an attorney about bankruptcy information, they need to provide all the details of their financial life. There is nothing to be gained by hiding anything no matter
There are several types of these proceedings and they are used different ways. One is for personal debt such as car loans, credit card debt, home mortgages, medical bills, and other consumer debt. The other type is used by businesses that have undergone financial difficulties. Sometimes the processes require giving up personal possessions along with a repayment plan for all or some of the debt. Sometimes the way the process works is to allow for the restructuring of debt so that it is possible for a company to continue without going out of business completely.
Sometimes filing bankruptcy is not the only option. A lawyer can advise the client on whether or not this is a suitable thing for them. They may be able to suggest things that have a lesser impact such as debt negotiation with creditors or a referral to a debt counseling agency. Much will depend on the specific situation. Those who are able to find other solutions may want to look at them. These solutions may have a lesser long term impact to ones credit score. There may be reasons to prefer one way of debt resolution to the other. A bankruptcy attorney in San Diego can provide guidance about what a client should do.
Phoenix Delray
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