Garden Grove Bankruptcy Attorney

Garden Grove Bankruptcy Attorney

Garden Grove is a diverse city with historical, cultural and leisure attractions in and around the city. According to the US Census data as of 2019 the population of Garden Grove was approximately 171,644 with a Median household income of $69,278 and a poverty rate of 14%. The large housing costs and expenses of living in California creates difficulty for many families in covering monthly household expenses without incurring debt. Many families have turned to personal loans and credit cards to supplement their daily expenses.

If you find yourself in a situation where you face mounting debt from credit cards, medical bills and personal loans, bankruptcy can give you a restart. It is never to late to restart your finances and clean up past financial issues. Bankruptcy does not have to be the end of your credit, it can be the beginning of building a new financial path forward free of debt. One of the first steps toward doing this is to learn about the bankruptcy options available to you:

The main consumer bankruptcy cases that are filed and available to assist you are Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 bankruptcy is a liquidation bankruptcy that generally last approximately 3 to 4 months to complete. In a Chapter 7 bankruptcy you can discharge debts from credit cards, personal loans, medical bills and business debts. To qualify for a Chapter 7 bankruptcy your income and household size are examined. If you fall below the median household income then you can qualify for a Chapter 7 bankruptcy. Currently the median household income for California is as follows:

If you are above the median household income for your household size then a means test calculation is done to determine whether you can file for Chapter 7 bankruptcy. In many cases you will still be able to qualify if you have deductions that will allow you to pass the means test.

Chapter 13 bankruptcy is available for those who do not qualify for Chapter 7 bankruptcy, who need a payment plan to address repaying mortgage arrears, vehicles or taxes, or who want to protect assets that would be sold in a Chapter 7 bankruptcy. A Chapter 13 bankruptcy plan ranges from 3 to 5 years. If you are below your median income for your household size then your Chapter 13 plan can be 3 years. If you are above the median household size for your household size then your plan will be 5 years. Having to file a Chapter 13 plan does not mean that you will have to pay back all of your debts. The percentage that you will have to pay back to credit cards, medical bills and personal unsecured loans will depend on your disposable income and the assets you own. Plans can range from 0% to unsecured creditors to 100% to unsecured creditors.

Consulting with a Garden Grove bankruptcy attorney regarding your debts can be the beginning of living a debt free life. There are options to resolving your debt and knowing them gives you the tools necessary to start moving forward free of the bondage of debt.