Why Should I File for Bankruptcy?

Learn What Bankruptcy Can Do for You in San Diego, California

Making the decision to file for bankruptcy is not easy and should not be made without considering all aspects of your financial situation and the consequences that bankruptcy may have on your assets and your financial health. You need to seriously consider the type and amount of debt that you have and your ability to meet the original payments required by the creditors.

At American Debt Relief, we believe that for many people, filing for bankruptcy is a responsible and healthy choice that will help them get a fresh start. There are many benefits to bankruptcy, perhaps none more important than the opportunity to feel optimistic about your financial future. While filing for bankruptcy is not the best decision for everyone, in many circumstances, it can be a worthwhile tool.

Bankruptcy attorney Leonard J. Ackerman will review your situation with you and help you understand your options. He has handled countless numbers of bankruptcies in San Diego County and knows what a Chapter 7 or Chapter 13 bankruptcy can do to your credit and your property.

Benefits to Filing for Bankruptcy

Discharge Many Kinds of Debt:

In Chapter 7 bankruptcy, you can discharge certain kinds of debt, including credit card debt and medical bills, and are no longer liable for those debts. Under Chapter 13, you will design a repayment plan to pay back your debts over a 3-5 year period, at the end of which the remaining debt will be discharged.

Stop Creditor Harassment:

After you have filed for bankruptcy, collection efforts from creditors must stop immediately. This includes phone calls, letters and other collection efforts. If creditors do contact you during a bankruptcy, they may be subject to sanctions.

Rebuild Credit:

While a bankruptcy will remain on your credit report for 10 years in California, a bankruptcy will typically help you improve your credit. Most people who file for bankruptcy already have late payments and defaulted accounts listed on their credit report and these will be no longer listed after your bankruptcy. You may be eligible for loans and lines of credit soon after a bankruptcy is filed.

Figure Out if Bankruptcy is Right for You

Contact American Debt Relief and bankruptcy lawyer Leonard J. Ackerman to determine if filing for bankruptcy is the best option for your situation. We will help you review your assets, your income and your debts to determine if bankruptcy will help you achieve a new financial future. We can help you prepare all paperwork and provide individual attention to your needs.