Seven years on from the economic crash of 2008, many San Diego area families are still struggling to cope with overwhelming debt and financial obligations. Layoffs, reduced work hours, hospital bills, and the lingering effects of the housing market crash are all factors that can leave one with one’s back to the wall financially. Fortunately, that law has put in place a mechanism to start fresh in terms of debt – bankruptcy. The purpose of the article is to provide San Diegans with information about bankruptcy. Because there are many myths floating around about bankruptcy, it is important to educate oneself about the subject. For individuals considering bankruptcy, it is wise to speak with an experienced San Diego bankruptcy attorney.
Debunking Myths About Bankruptcy in California
Unfortunately, for individuals and families who might otherwise benefit from bankruptcy, there exists the preconception that one exits the process with zero assets. This is simply not true. In Chapter 7 Bankruptcy, for example, there are many exemptions allowing individuals to keep most, and in some cases all, of their belongings. To say that something is “exempt” from the bankruptcy process is to say that it is excluded from the process. The state of California realizes that it is difficult, if not impossible, to start fresh financially without a car, home, and furniture. As such, the state allows for generous real and property exemptions to ensure that Californians who elect to go through the bankruptcy process are in a genuine position to regroup and find their way to better financial days. Keeping certain real and property items exempt from creditors seeking to reach assets in bankruptcy court may not please creditors, but it does serve the public policy purpose of helping California individuals and families get the fresh financial start they need.
A second myth surrounding bankruptcy is that it is the tool of the weak – that bankruptcy is a way deadbeats and bums cheat the system. This myth – perpetuated by creditors – is simply not true. Sadly, it is this very stigma that prevents deserving California individuals and families from even exploring the possibility of getting the financial fresh start they need. The truth is that every year tens of thousands of people file for bankruptcy in San Diego County alone. These people are not deadbeats or bums – they are ordinary folks who have fallen on hard times financially. Like them, you should not feel that bankruptcy is somehow un-American. California law would not allow for bankruptcy if that was the case.
Finally, there is a misperception that bankruptcy is an arduous, endless process. This, like the myths debunked above, is not true. Bankruptcy does not have to be difficult or painful. With the help of a skilled and experienced California bankruptcy attorney, Californians in need of a fresh financial start can smoothly navigate the procedures and paperwork required to file for bankruptcy. If you are in financial distress, don’t hesitate to contact a skilled and experienced San Diego bankruptcy attorney.