Santa Maria Bankruptcy Attorneys Serving the Central Coast

Helping You Move Forward to a Fresh Start

Sometimes, unexpected circumstances occur in life that can give rise to financial hardship and struggle. Illness, income reductions, and family matters are among the many situations that may cause you to go into debt. If you have found yourself in difficult and overwhelming financial circumstances, you don’t have to go through it alone. Our bankruptcy attorneys at the Law Office of Christopher S. Biely can help you get the relief you need to start moving forward to a new beginning.

Understanding Chapter 7 Bankruptcy

If you have an excessive amount of personal debt that has become too overwhelming for you to manage, filing for Chapter 7 bankruptcy may be a good option. Depending on the type of debt you have, you may be able to have it completely wiped out so you can get back on your feet. Being able to get a fresh start is one of the major benefits of bankruptcy.

Under Chapter 7, many types of debt can be discharged, including:

• Medical debt
• Credit card debt
• Personal loans
• Overdue utility bills

To be eligible to have your debts wiped out in bankruptcy under Chapter 7, you must pass the “means test.” The court will consider several factors to determine whether you satisfy the criteria. Generally, the test considers whether your income is low enough in proportion to your expenses to have your debts discharged.

When considering bankruptcy, many people are concerned that they will have to give up all of their belongings and property – this is not the case. In California, there is a wide range of exempt property that is protected from liquidation under Chapter 7. Often, you can keep your home, vehicle, and many pieces of personal property, up to a certain dollar amount.

Property that is considered non-exempt in California can be liquidated to pay your unsecured debts. We know that understanding the nuances of the Chapter 7 bankruptcy process can be confusing. If you are thinking about filing for bankruptcy, there are many concerns you will have about your property, assets, and financial well-being. Our attorneys take the time to make sure that you understand the bankruptcy process from start to finish so that you can make an informed decision.

Filing a Chapter 13 Bankruptcy

Unlike Chapter 7 which can wipe out many of your debts entirely, filing for bankruptcy under Chapter 13 reorganizes it. This process allows you to create a repayment plan which is designed to help you to pay creditors over the course of 3-5 years. If you file under Chapter 13 and follow through with your repayment plan, you can keep property that is considered both “exempt” and “non-exempt.”

There are many differences between filing for bankruptcy under Chapter 7 and Chapter 13. Depending on the entirety of your financial situation, one may be more beneficial than the other. For example, there are certain protections offered to debtors who file under Chapter 13, including foreclosure protection. Unlike a Chapter 7 bankruptcy which you are only able to file every eight years, there are no limits to the number of times you can file under Chapter 13.

Bankruptcy eligibility under Chapter 13 is also subject to a “means test.” However, instead of being based on whether your income is low enough, the “means test” under Chapter 13 determines whether your income is sufficiently high enough to be able to repay the debts you owe.

Each type of bankruptcy filing has pros and cons. Bankruptcy is a highly specialized area of law and it is essential to have the guidance of an experienced attorney who practices in this field. The Law Office of Christopher S. Biely offers clients the benefit of working with attorneys who have a specialized focus in the practice area of bankruptcy combined with personalized attention to your case. We will address your specific concerns and discuss whether Chapter 7 or Chapter 13 is best for your situation.

If you are considering filing for bankruptcy, it is important to consult with an experienced attorney who can walk you through the complexities of the process in this highly nuanced area of law. Our Santa Maria bankruptcy attorneys handle consumer bankruptcies under Chapter 7 and Chapter 13 of the bankruptcy code and can ensure that you are educated about your options to make an informed decision.

We help clients file for Chapter 7 and Chapter 13 bankruptcies in Santa Barbara County, San Luis Obispo County, across the Central Coast, as well as out-of-state clients with California cases. We are available to meet with clients in-person or remotely at their convenience. Contact us for an initial consultation to learn how we can help.

Our firm practices bankruptcy law and we are considered a debt relief agency by federal law. We help people file for relief under the Bankruptcy Code.