1.  Will Bankruptcy discharge enough of your debt to make it worth your while?


Certain categories of debts cannot be discharged in California chapter 7 bankruptcy.  These are called nondischargeable debts, and it doesn't make much sense to file for chapter 7 bankruptcy if your primary goal is to get rid of them.  A chapter 13 bankruptcy will be more beneficial.

Here is a list of nondischargeable debts:

-Very recent student loans
-Most federal, state and local taxes
-Child support and alimony and debts in the nature of support
-Fines or restitution imposed in a criminal-type proceeding
-Debts resulting from intoxicated driving

To get a debt in any of these categories discharged, you can hire a lawyer and ask the bankruptcy court, while your case is open, to rule that a particular debt should be discharged.

2.  How much property will you have to give up?

Certain kinds of property are exempt in almost every state, while others are almost never exempt.  The following are items you can typically keep (exempt property):

-motor vehicles
-necessary clothing (no mink coats)
-reasonably needed household furnishings
-household appliances
-jewelry
-personal affects
-life insurance
-pensions
-part of the equity in your home
-tools of your profession
-portion of unpaid wages
-public benefits

Contact us today to avoid ruining your bankruptcy.  Don't let the new California bankruptcy laws scare you.