Bankruptcy / California / Capitola

Filing Bankruptcy in Capitola: 7 Things You Need to Know

Written by Ben Tejes
Updated Oct 18th, 2022

You are considering filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Capitola. Bankruptcy is a common debt relief choice. 

In fact, many people in California have received bankruptcy relief, and Capitola is no different. In fact, there were 45,831 bankruptcies filed in California in the year ending June 30, 2021 (Source). With a population of 10010, I’d estimate a fair number of those were in Capitola.

The purpose of this article is to provide an extensive list of filing bankruptcy in Capitola including:

  1. Chapter 7 Bankruptcy in Capitola
  2. Chapter 13 Bankruptcy in Capitola
  3. Capitola Bankruptcy Attorney Fees
  4. Finding a Reputable Bankruptcy Lawyer in Capitola
  5. Estimating Loss of Belonging (i.e.
  6. Getting Bankruptcy Help in Capitola
  7. Bankruptcy Alternatives and Conclusion

Without further ado, let’s get started with Chapter 7 bankruptcy.

Chapter 7 Bankruptcy in Capitola

Chapter 7 bankruptcy is the most common consumer bankruptcy in the United States. People appreciate the simplicity of Chapter 7 bankruptcy, the cost of the Chapter 7 bankruptcy, and the speed of debt relief. For example, in Capitola, you could get debt relief in about 120 days with a Chapter 7 bankruptcy.

One of the challenges of Chapter 7 bankruptcy in Capitola is that you have to qualify. In order to qualify in Capitola, you often have to pass the California bankruptcy means test. You can estimate that qualification below in Capitola. Let’s cover how you can qualify.

Chapter 7 Qualification

The first part of the means test is to understand your income in relation to the median income levels for California. It considers the average family size and income.

To estimate your qualification, you can take the Capitola Chapter 7 qualification calculator below that is specific to Capitola.

Finally, the most recent California median income levels is for cases filed on or after May 15, 2022, and can be found below.

# of PeopleAnnual Income
1$69,660
2$86,271
3$97,021
4$113,615
5$123,515
6$133,415
7$143,315
8$153,215
9$163,115

If your income exceeds the median, you can move on to the second part of the means test to estimate qualification. The second part of the means test is to understand your actual expenses. You can check out our guide covering trying to qualify for Chapter 7 bankruptcy above the median.

For example, the average median rent amount in Capitola is $1780, but let's say your rent is almost double that amount. Could you potentially still qualify for Chapter 7 bankruptcy because of those additional expenses? What you are able to state as ab expense is limited, and you can refer to the current national standard for the maximum amounts, but you may want to speak with your attorney about this situation.

Chapter 13 Bankruptcy in Capitola

Chapter 13 bankruptcy is known as a wage-earner bankruptcy. Chapter 13 bankruptcy is a voluntary reorganization of debt.  In Chapter 13 bankruptcy, the individual has debt that they can no longer manage and often own assets that exceed state and/or federal relief. Folks file Chapter 13 bankruptcy often when they do not qualify for Chapter 7 bankruptcy.  

Most individuals in Capitola will qualify for Chapter 13 bankruptcy as long as they are below the debt limits.

Compared to Chapter 7, there is no liquidation in Chapter 13 Bankruptcy. Although, the discharge won’t be until around 3 to 5 years. The Chapter 13 bankruptcy will stay on your credit report for 7 years.

Capitola Bankruptcy Attorney Fees

When looking for a bankruptcy attorney, we recommend that you look for these 5 attributes: Rate, Reliability, Referrals, Reviews, and Relevancy. You can check our guide to find a top bankruptcy attorney in Capitola.

The estimated Chapter 7 bankruptcy lawyer fee in Capitola is: $900 - $2000.

The estimated Chapter 13 bankruptcy lawyer fee in Capitola is: $3300 - $4800. The Chapter 13 attorney fee is often set across the district, meaning that all Chapter 13 bankruptcy attorneys in a district may charge around the same fee.

Capitola Bankruptcy Attorneys

One of the most important things to do is to find a reputable bankruptcy attorney in Capitola if you decide to hire one. This is legal advice related to finances that are going to affect your future. For example, making sure you are in the right bankruptcy chapter (Chapter 7 vs Chapter 13) could cost you thousands more and take you years longer.

Chapter 7 Bankruptcy Lawyer

As stated above, Capitola has a population of 10010. In many cases, individuals in larger cities such as Los Angeles or San Diego would like a bankruptcy lawyer close by. In smaller cities, I have found that individuals have questions about whether the bankruptcy will show up in the newspaper or whether friends will hear about it. This is a valid question.

Regardless, you can check the Chapter 7 bankruptcy lawyers in or near Capitola using the table below. You just need to input your zip code, and voila, you can choose which Chapter 7 bankruptcy lawyer you would like to speak to near or far away from Capitola in a free bankruptcy lawyer consultation

Chapter 13 Bankruptcy Lawyer

Filing a Chapter 13 bankruptcy in Capitola may be a bit more intensive, so you may consider a Chapter 13 bankruptcy that is closer to you. That said, with the internet and the pandemic, many of the meetings are now online and you can generally submit your documentation online as well.

Regardless, you can use the table below to find a Chapter 13 bankruptcy lawyer in or near Capitola. Also, the fees are just estimates, and may not be reflective of the actual cost of the attorney fees.

Zip code
sort_numguidhas_phoneFirmRatingReviewsRelevancyFree ConsultPayment PlansContactClick to Call

Bankruptcy Exemptions in California

As you live in Capitola, you are often able to use the California bankruptcy exemptions to help you keep your belongings.

One of the biggest questions people have is whether they are able to keep their homes in bankruptcy. This is where bankruptcy exemptions come into play. As Capitola has a home ownership % of 47.1% and an estimated estimated home value of $714503, you can understand that many people want to keep this asset. You can often keep your assets using bankruptcy exemptions.

Here are the California bankruptcy exemptions. The exemptions are revised on different occasions, so you may wish to check the most current information on exemptions. Also, as a reference, California is a place that does not allow you to use federal bankruptcy exemptions. You often have to choose which one to use, so a bankruptcy attorney can help you with that option.

Homestead Exemption

The homestead exemption is often broken down by age and whether you are married. 

  • Single and under 65: $600,000
  • Single is 65 or older: $600,000
  • Married and under 65: $600,000
  • Married is 65 or older: $600,000

California specific homestead bankruptcy exemption text: "New Language as of January 1, 2021: Gavin Newsome signed into law the Assembly Bill CA 1885 that passed on September 18, 2020, the updated language: 704.730. (a) The amount of the homestead exemption is the greater of the following: (1) The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000). (2) Three hundred thousand dollars ($300,000). (b) The amounts specified in this section shall adjust annually for inflation, beginning on January 1, 2022, based on the change in the annual California Consumer Price Index for All Urban Consumers for the prior fiscal year, published by the Department of Industrial Relations." (Source)

Automobile Exemption

The automobile bankruptcy exemption in California is $3,325.

Jewelry Exemption

The jewelry bankruptcy exemption in California is $8,725.

Tools of Trade Exemption

The tools of the trade bankruptcy exemption in California is $8,725.

Wildcard Exemption

The wildcard bankruptcy exemption in California is $1,425.

Special Exemption Handling for California

Below is specific special handling of bankruptcy exemptions in California.

  • Tools: up to $17,450 if used by both spouses in same occupation

Bankruptcy Help in Capitola

Unemployment can cause both frustration and angst about options. The most recent statistic I found is that the Capitola unemployment rate is 1.2%. There may be resources available to help. In addition to the unemployment rate, Capitola has a disability rate of 17%. As such, if you are truly in need and don’t have income, there are resources that may be available that can help you.

Check out the legal aid and free resources that may be available in Capitola.

Legal Aid and Free Resources

Here are some legal aid resources that may be helpful to you in Capitola.

The bankruptcy court and district may have free resources that are available to you. I have included the information below. 

Lastly, Capitola also has a limited English rate of 0.9% and a poverty rate of 15.9%. If you have limited English, you may check out the court websites for California for additional information on how you can be served. You can also see how filing bankruptcy without an attorney can work if you cannot afford a bankruptcy lawyer.

Courts and Districts in California

Northern District

  • Phillip Burton Federal Building
    & United States Courthouse
    450 Golden Gate Avenue
    San Francisco, CA 94102
  • Ronald V. Dellums Federal Building
    & United States Courthouse
    1301 Clay Street
    Oakland, CA 94612
  • Robert F. Peckham Federal Building
    & United States Courthouse
    280 South 1st Street, Room 2112
    San Jose, CA 95113
  • United States Courthouse
    3140 Boeing Avenue
    McKinleyville, CA 95519

Eastern

  • Robert E. Coyle United States Courthouse
    2500 Tulare Street
    Fresno, CA 93721
  • Robert T. Matsui United States Courthouse
    501 "I" Street
    Sacramento, CA 95814

Central

  • 350 W 1st Street, Suite 4311
    Los Angeles, CA 90012-4565
  • 255 East Temple Street
    Los Angeles, CA 90012-3332
  • 3470 Twelfth Street
    Riverside, CA 92501-3801
  • 411 West 4th Street, Room 1053
    Santa Ana, CA 92701-4516

Southern

  • 221 West Broadway
    San Diego, CA 92101
  • 333 West Broadway
    San Diego, CA 92101
  • 2003 W. Adams Ave, Ste 220
    El Centro, CA 92243

Debt Settlement in Capitola

One of the most common alternatives to bankruptcy is debt settlement. A debt settlement firm would negotiate for a lower amount due on your debt in the case of financial hardship. The goal would be to reduce your debt in half. In this case, you would have a lower monthly payment.

If you are looking at debt settlement in Capitola, you may want to consider a national debt settlement firm to a local one in Capitola. For example, most of your creditors are probably national banks instead of local Capitola banks. As such, you can potentially get lower fees by using a national firm. You should strongly consider the pros and cons and credit score impact before taking the plunge as Ascend only recommends 2 debt settlement firms nationwide that both offer free phone evaluations.

Conclusion

Chapter 7 bankruptcy and Chapter 13 bankruptcy in Capitola can provide debt relief. That said, you may want to consider the cost of bankruptcy in Capitola, the different bankruptcy chapters, reputable attorneys in Capitola and alternatives to help you make the most informed decision. 

You can also take our Chapter 7 vs Chapter calculator below to help you estimate the cost and qualification of Chapter 7 bankruptcy and Chapter 13 bankruptcy in Capitola.