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Bankruptcy in California: Start Fresh and Rebuild Your Financial Life
By James L. Arrasmith, Owner and Chief Legal Counsel, The Law Offices of James L. Arrasmith
Bankruptcy is not a sign of failure — it’s an opportunity for a fresh start. At the Law Offices of James L. Arrasmith, we help people and businesses across California eliminate debt, protect their assets, and rebuild their financial future.
Whether you’re struggling with credit card debt, facing foreclosure, or need a break from constant creditor calls, we guide you through every step with clear and caring legal advice.
Understanding Bankruptcy
Bankruptcy is a legal process that allows you to eliminate or pay off debts with the help of the federal bankruptcy court. People in California usually file under one of these chapters:
Chapter 7 Bankruptcy: Eliminate Unsecured Debts
Chapter 7 bankruptcy is the most common type. It gets rid of unsecured debts like credit cards and medical bills. Some non-exempt assets may need to be sold, but many people can keep everything, thanks to California’s exemption laws.
Chapter 13 Bankruptcy: Create a Payment Plan
Chapter 13 bankruptcy lets you keep your property while catching up on missed payments over 3 to 5 years. It is often used to stop foreclosures, repossessions, or even IRS collections. This option gives you time to catch up without losing your home.
Chapter 11 Bankruptcy: For Businesses or High-Income Individuals
Businesses or high-income individuals use Chapter 11 bankruptcy to reorganize their debts and continue operating. It’s designed for complex situations where restructuring is needed.
Signs You Need Bankruptcy
Bankruptcy may be the right solution if you notice these signs:
- Falling behind on mortgage or car payments
- Credit cards maxed out, and calls from collectors won’t stop
- Taking out loans to pay other loans
- Facing lawsuits or wage garnishments
- Medical bills are overwhelming
- Divorce or job loss created financial struggles
Bankruptcy isn’t for everyone, but it can be a smart move toward a fresh start when done right.
How Bankruptcy Helps You
Bankruptcy can give you a much-needed break by:
- 🛑 Stopping creditor harassment
- 🏠 Stopping foreclosure
- 🚫 Stopping utility shut-offs
- 💳 Eliminating credit card and medical debt
- 🛡️ Protecting your car, wages, and household goods
Once you file for bankruptcy, the automatic stay is triggered. This means creditors have to stop calling, and any wage garnishment or lawsuits are put on hold.
What Bankruptcy Can’t Do
Although bankruptcy offers many benefits, there are some things it can’t do:
- Wipe out recent taxes (in most cases)
- Eliminate child support or alimony payments
- Make student loans disappear, though it’s sometimes possible
- Discharge secured debts like car loans (unless you give up the asset or continue payments)
This is why you should speak with a bankruptcy attorney who understands California law and federal exemptions to help guide you.
California Bankruptcy Exemptions
California has two bankruptcy exemption systems (703 and 704). Choosing the right one can help you protect your home, retirement funds, vehicles, and more.
Why Choose James L. Arrasmith for Your Bankruptcy Case?
Here’s why people trust James L. Arrasmith with their bankruptcy cases:
- Over 15 years of experience in California bankruptcy law
- Clear, judgment-free bankruptcy advice
- Focused on protecting your assets and your future
- Knowledge of local court rules and trustee expectations
- Help with credit rebuilding after bankruptcy
When your financial life feels like it’s falling apart, we’ll help you start over stronger.
Ready for a Fresh Start?
Bankruptcy is not the end. It’s a chance to start fresh. At the Law Offices of James L. Arrasmith, we handle every case with care and focus on getting real results.
Schedule your consultation today and let’s work together on your financial reset.
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