Filing for bankruptcy is a legal process, although some people associate bankruptcy with fraud, crimes, and financial indiscipline. Filing for bankruptcy is a prudent move when you are in a financial crisis and cannot pay debts. The process offers you time to plan your finances, pay debts, and prevent creditors’ harassment.

Several federal codes regulate the process in the US. It is prudent to seek the services of a bankruptcy attorney while filing for bankruptcy. At Los Angeles Bankruptcy Attorney, we will guide you through all the fundamental filing processes for bankruptcy. If you wish to have some relief on overdue debts in Anaheim, contact us today.

Why Do You Need to File for Bankruptcy?

As a person or a business entity, debt is a common phenomenon. These debts emanate from overdue loans, advances, and other financial resources that creditors provide to boost the entity's resource base. Finances and other resources from creditors play a significant role in helping businesses or individuals to operate. Sometimes, it becomes impossible to pay the creditors back, and you find yourself neck-deep in debt. At times, the only viable solution out of the financial situation is to seek the services of an experienced and reliable Anaheim Bankruptcy lawyer.

You often acquire loans and other resources with an obligation to repay them with interest and at a given time. However, when you do not pay, creditors can use several avenues to collect the debt. Some common strategies for collecting overdue debts include:

  • Wage garnishment
  • Property repossession
  • Lawsuits
  • Foreclosures

If a creditor uses one of these debt collection measures, they mount pressure on you as the debtor. At other times, a creditor may send irritating messages or reminders in a bid to make you repay the loan. All these moves present financial challenges to a debtor. Therefore, you may opt for a legal process that would protect you from constant harassment from creditors.

Everyone deserves a chance to start afresh financially. Pressure emanating from debt accumulation may further aggravate financial struggles for individuals and businesses. Therefore, bankruptcy law seeks to protect you from stress caused by creditors and give you ample time to stabilize financially.

What Do You Need to Understand When Filing for Bankruptcy?

Bankruptcy is a legal process that protects you from creditors' interference and their diverse debt collection mechanisms. Considering that it is a legal process, it entails complex concepts that require you to consult a bankruptcy attorney. When filing for bankruptcy, it is crucial to understand the following concepts:

  • Type of bankruptcy chapters
  • Distinguish myths and truth about the process
  • Basic terms relevant to the process
  • Procedural requirements in terms of documents
  • Potential benefits and consequences of bankruptcy
  • Legal attorneys around you and their help when filing for Insolvency

Types of Bankruptcy

It might be a challenge to understand which Bankruptcy Chapter is best suited to your current financial situation. You can consult your attorney for sound legal advice on the process. The U.S. federal code has various Chapters under which you might file for bankruptcy. Some of the most common include Chapter7 (liquidation), Chapters 11, 12, and 13.

Chapter 7

Often, this Chapter is the most sought after when you need protection from non-consensual harassment from creditors. You may also file for asset liquidation as a strategy to realize a new financial beginning. This Chapter accommodates almost everybody but depends on a mean test to determine whether you qualify to file for bankruptcy under Chapter7 or not. A mean test evaluates your income alongside your financial responsibilities for a specific timeframe. The test is based on your monthly income. If you cannot pay the debts after deducting your monthly expenses from your income, you qualify to file for bankruptcy under Chapter 7.

Chapter 11

When filing for bankruptcy, you may opt for the reorganization of debt obligations. Chapter 13 provides you with avenues to restructure debt repayment terms by accessing several friendly options. Unlike liquidation, you may enjoy the prospect of maintaining business operations by convincing creditors to restructure your payment plans.


This category applies to professional types such as farmers and fishers. More importantly, it comes with a handful of benefits to these categories as it allows for the restructuring of debt repayment plans.

Chapter 13

This Chapter represents a universal kind of Chapter12 bankruptcy. When filing for this bankruptcy type, you have the chance to maintain ownership of some assets and structure fair repayment plans. Chapter13 Bankruptcy mainly applies to large businesses and high-income individuals who seek to maintain crucial assets when planning to repay the overdue debt.

Myths Surrounding the Bankruptcy Process

Many people attribute bankruptcy to financial indiscipline, crime, and fraud. However, it is a legal process that seeks to "bailout" debtors from creditors' intimidation and frustrating debt recovery mechanisms. Despite its usefulness in providing financial stability, many people attribute several myths to bankruptcy. Some of the most dominant ideologies regarding bankruptcy include:

It Is A Result of Financial Indiscipline, Lack of Accountability, And Crime

Often, filing for bankruptcy is a sensitive matter. It is nonetheless a viable legal option that seeks to provide a new financial beginning and eliminate pressure from creditors. It also entails an in-depth review of financial documents to ascertain whether you meet the bankruptcy filing legal criteria.

If a law court processes your insolvency petition, a creditor may challenge the process by convincing the court that you have conspired to cheat the court. If they justify their claims, then the bankruptcy law allows for the nullification of your insolvency files. In such a case, your debt obligations remain, and creditors have the authority to commence with the debt collection activities. That is why you need to employ the services of a reliable Anaheim Bankruptcy attorney.

Filing for Bankruptcy Would Affect Your Credit Limit Forever

The perception that filing for bankruptcy will affect your credit score forever is common to many people. However, this notion is gross misinformation about the overall process. Before determining the potential effects of filing for bankruptcy on your credit rating, it is vital to consider the effects of different bankruptcy Chapters. For example, in Chapter7, bankruptcy would affect your limit for seven years, while other Chapters would have different effects. For instance, Chapter13 is more friendly to your credit rating since it accommodates flexible repayment plans that suit your financial situation.

Filing for Insolvency Is Easy and Straightforward

Any legal process involves complex procedures, verification, and guidelines to guarantee efficiency. Filing for bankruptcy in Anaheim is not an exception. You need to follow a certain procedure before securing protection against "nagging" creditors. The process might be complicated if you have limited exposure to legal advice. That is why it is paramount to seek a qualified Anaheim Bankruptcy lawyer’s services if you intend to file for bankruptcy in the city.

If You File for Bankruptcy, You Will Lose All Your Property

Although you may lose unsecured assets after filing for Chapter7 liquidation, you may not necessarily lose all your assets. Chapter 7 allows you to maintain ownership of some properties. Other Chapters such as Chapter13 provide you with chances to save your assets from creditors by availing friendly repayment plans for overdue debt. Therefore, this myth represents a gross misunderstanding of the bankruptcy terms and conditions.

Standard Terms You May Encounter When Filing for Insolvency

Debt discharge

The overall purpose of filing for bankruptcy is to alleviate your debt burdens. Debt discharge denotes the process of preceding or forgiving some debts to reduce your financial obligations. Although bankruptcy law in the U.S. provides for several debt discharges, it prohibits discharges on child support, tax debts, alimony, and fraudulent debts.

A trustee

After your insolvency case success, the court may assign you a legal intermediary to inform you about any legal development during the process. Therefore, a trustee is a court-appointed middleman who bridges the gap between you and the creditors. In other times, they oversee the process of selling properties to repay debts.

A lien

In many instances, creditors are cautious about losing money as a result of debt. A lien entails the process of attributing value to a particular investment as a guarantee for debt repayment.

Secured and unsecured debts. A secured loan has an asset guarantee, while unsecured debt lacks any asset guarantee.

Loan garnishment

In some instances, you may fail to repay debts at the stipulated time. When the creditor realizes that you have not cleared the debt arrears, they may cooperate with your employer (s) and structure the repayment terms. Therefore, loan garnishment is the process of repaying a debt by deducting directly from the debtor's salary to avoid further stress and delays. Where making such an approach, proper communication is fundamental to avert any misunderstanding.

What You Need to File for Bankruptcy

When facing debt and the imminent need for Insolvency, always remember that this process is complex, formal, and legal. Therefore, you need to observe genuineness and openness when submitting your fiscal documents. The bankruptcy law requires you to provide the following documents when filing for insolvency:

  • Your court petitions
  • A schedule with all your creditors or assets
  • A statement with your total debts
  • Income or financial responsibilities
  • Operational leases and contracts
  • Recent tax returns

Although these requirements may vary across states, counties, cities, and municipalities, you may expect similar conditions.

Filing for Insolvency in Anaheim

If your insolvency case is to be successful, you have to operate under the guidance of an experienced Anaheim Bankruptcy attorney. If you want to file for bankruptcy in Anaheim, Orange County, you are fortunate to have a loyal companion who would guide you through the process of such a sensitive legal process.

Los Angeles Bankruptcy Attorney is a legal firm specializing in assisting people and businesses to file for Insolvency. We acknowledge the essence of alleviating financial struggles and providing a new beginning for individuals and businesses. Due to market uncertainties and dynamics, the number of individual and business bankruptcies continues to shoot. For instance, there were about 700,000 bankruptcy files under review from 31st March 2019 to 31st March 2020. Out of the total number, over 23,000 files were from businesses, while over 690,000 files were from individuals.

Why You Should Work with a Reputable Bankruptcy Attorney

Filing for bankruptcy is a complex legal process. That is why you should employ the services of a bankruptcy attorney. A reputable Anaheim Bankruptcy law firm like Los Angeles Bankruptcy Attorney will offer you:

Integrity and Impartial Services When Conducting the Process

Everybody deserves quality services and guidance when filing for bankruptcy. For Orange County residents, especially Anaheim city, you should consult the Los Angeles Bankruptcy Attorney.  A lawyer at our practice is always a call away. Even during financial struggles, you deserve a smile and companionship from an honest legal partner.

Our significant experience comes with an in-depth understanding of the legal requirements and consequences brought about by bankruptcy. Los Angeles Bankruptcy Attorney is your ultimate partner if you require a bankruptcy legal advisor of reputable experience around Orange county and Anaheim city.

High Customer Satisfaction and Positive Online Reviews

As a client, you deserve happiness. At Los Angeles Bankruptcy Attorney, we provide you with much-needed legal services that will guarantee satisfaction. High customer satisfaction means we have garnered many positive reviews and a high reputation.

Affordable and Reliable Services

When filing for bankruptcy, it is understandable that you are facing a challenging situation. Therefore, you need to find a legal partner who understands your concerns and provides reliable services. If you are in Anaheim City or the larger California state, you are fortunate to have Los Angeles Bankruptcy Attorney.  We are a legal partner who understands your financial struggles and complements your efforts to secure a new financial beginning. We are among the top-rated Anaheim bankruptcy attorney law firms, thanks to our more than 20 years of experience.

Call an Anaheim Bankruptcy Attorney Near Me

At Los Angeles Bankruptcy Attorney, we are a reputable legal partner if you are looking for quality and affordable services and customer satisfaction. If you want to file for bankruptcy in Anaheim, look no further. Upon choosing us, you will enjoy peace of mind when you successfully file for bankruptcy. Call us today at 424-285-5525.