Best Bankruptcy & Debt Lawyers in San Mateo

About Bankruptcy & Debt Law in San Mateo, United States

Bankruptcy and debt law in San Mateo, California, is designed to help individuals, families, and businesses facing financial difficulties or overwhelmed by debt. These laws provide options for managing, restructuring, or even eliminating debt to help people make a fresh start. Residents of San Mateo typically file bankruptcy cases under federal law, but the process is also influenced by specific California state laws, particularly concerning exemptions and property protection.

Why You May Need a Lawyer

Bankruptcy and debt situations can be complex and stressful. You may need a lawyer in several scenarios, including:

• If you are unable to meet your debt obligations and want to explore bankruptcy options
• If creditors are suing you, garnishing your wages, or threatening foreclosure
• If you need help understanding your rights regarding debt collection practices
• If you want to negotiate settlements or create payment agreements with creditors
• If you own a business facing financial distress and require specialized advice on restructuring or liquidation
• If you are concerned about protecting your home, car, or other assets during bankruptcy
• If you have questions on which type of bankruptcy to file, such as Chapter 7, Chapter 11, or Chapter 13
• If you are worried about the impact of bankruptcy on your credit and future finances

Local Laws Overview

In San Mateo, bankruptcy law operates under the United States Bankruptcy Code, but California law plays an important role, especially regarding exemptions, property rights, and the homestead exemption. Key points include:

• Bankruptcy cases are filed in the United States Bankruptcy Court for the Northern District of California, which covers San Mateo County
• California allows bankruptcy filers to choose between two sets of property exemption systems - System 1 and System 2. The right choice can protect the maximum amount of your property
• California’s homestead exemption can protect a portion of the equity in your primary residence, and the exemption amount is tied to the median house price in your county
• California law limits wage garnishment and allows you to challenge debt collection actions in court
• Filing bankruptcy triggers the “automatic stay,” which stops most collection activities, including foreclosure, repossession, and lawsuits
• California has specific rules for debt settlement and credit counseling agencies, ensuring that consumers are not taken advantage of by predatory businesses

Frequently Asked Questions

What are the main types of bankruptcy for individuals in San Mateo?

The most common personal bankruptcy types are Chapter 7 (liquidation) and Chapter 13 (reorganization). Chapter 7 can discharge many debts quickly, while Chapter 13 allows you to reorganize and pay debts over three to five years.

Will I lose my home or car if I file for bankruptcy in San Mateo?

Not necessarily. California’s exemption laws, including generous homestead exemptions, may allow you to keep your home and vehicle. The outcome depends on your asset values and which exemption system you use.

What is the automatic stay in bankruptcy?

The automatic stay is a court order that stops creditors from collecting debts, foreclosing on your home, repossessing property, or taking legal action as soon as you file for bankruptcy.

Should I file for Chapter 7 or Chapter 13 bankruptcy?

This depends on your income, assets, and financial goals. Chapter 7 is suitable for those with limited income who want a fresh start, while Chapter 13 is better for those with regular income aiming to catch up on missed payments and keep valuable assets.

How does bankruptcy affect my credit score?

Bankruptcy will lower your credit score and remain on your credit report for up to 10 years (Chapter 7) or 7 years (Chapter 13), but it can also help you rebuild credit over time with responsible use of new credit.

Can all debts be discharged in bankruptcy?

Not all debts can be eliminated. Common non-dischargeable debts include most taxes, student loans (with rare exceptions), child support, alimony, and some court judgments.

Are there alternatives to filing for bankruptcy in San Mateo?

Yes. Alternatives include debt negotiation, credit counseling, debt consolidation, and creating payment plans with creditors, all of which may help avoid bankruptcy.

How much does it cost to file for bankruptcy in San Mateo?

Fees include court filing fees (typically around $338 for Chapter 7 or $313 for Chapter 13) and attorney fees, which vary depending on the complexity of your case.

Can creditors continue to contact me after I file for bankruptcy?

No. The automatic stay prohibits creditors from contacting you or trying to collect debts during most of the bankruptcy process.

Do I need to attend court in person for bankruptcy in San Mateo?

Usually, you must attend at least one meeting of creditors known as the “341 meeting.” Most cases are resolved without additional in-person court appearances, but your attorney can explain what to expect.

Additional Resources

If you need information or assistance regarding bankruptcy and debt in San Mateo, consider reaching out to the following resources:

• United States Bankruptcy Court - Northern District of California
• California Department of Consumer Affairs
• San Mateo County Law Library
• Legal Aid Society of San Mateo County
• California Lawyers Association
• Federal Trade Commission - Consumer Information on Debt Collection
• National Foundation for Credit Counseling (NFCC)

Next Steps

If you are facing financial challenges or overwhelming debt in San Mateo, consider these steps:

• Gather information about your debts, assets, income, and expenses
• Review your options, including bankruptcy types and non-bankruptcy solutions
• Consult a qualified bankruptcy or debt attorney familiar with California law and the San Mateo area
• Ask about attorney fees, expected timelines, and the impact on your property and credit
• Verify that any credit counseling or debt settlement agency you use is approved and reputable

Making informed decisions with the help of a legal professional can relieve stress and set you on a path to financial recovery. When in doubt, seek advice from experienced attorneys and recognized consumer organizations.