If you are experiencing financial difficulties and would like to fight for a better future, bankruptcy might be an excellent idea. It provides a chance for you to bounce back on your feet once again after a long time of distress. If you are tired of making minimum payments on your credit cards or debt collectors calling and texting you now and then, this could be the time to think about filing for bankruptcy.

Being declared bankrupt by a court doesn’t sound or look right, especially on your credit status, but it grants you a chance to start afresh in life. A bankruptcy declaration comes with tons of benefits, among them an opportunity to reorganize your debts for a more manageable repayment or dispose of your possessions for quick repayment. If you consider this and would like help and guidance in applying for bankruptcy in Costa Mesa, talk to us at Los Angeles Bankruptcy Attorney. Let us review your situation and help you with the legal process.

Reasons to File for Bankruptcy

There are many ways of accessing your financial situation to understand where you stand at that moment and whether or not you need a court’s help in managing your debts. One is in evaluating how much money you have been spending on debt repayment. Have you been honoring your financial obligations like you should? Have your creditors or debt collectors started calling you? Are you unsure of exactly how much money you owe? These are just a few indicators that could help you evaluate whether or not you need to file for bankruptcy. Bankruptcy doesn’t mean that you are entirely financially drained. It is a call for help in managing your debts with the hope of a comeback sooner than later.

For a lot of people, the thought of sorting out their finances is scary enough. Some people have even thought of consolidating their debts but haven’t taken any step towards it. Taking charge of your finances needs a lot of courage. It could start with speaking to the right Costa Mesa bankruptcy lawyer and explaining your financial situation to him/her in detail.  You do not have to live with the guilt of owing so much money that you cannot repay as per your creditors’ agreement. Applying for bankruptcy will take the burden of debt management off your shoulders, and then you can focus on a fresh start.

Here are some of the reasons you should consider applying for bankruptcy today:

Bankruptcy Can Discharge Some of Your Debts

Imagine obtaining relief from some of those debts that have been stressing you for months or years? One advantage in seeking bankruptcy is that the court might have some of your debts discharged. Once a debt is discharged, you’ll no longer have an obligation to pay it. Creditors will lose their rights to demand payment from you. However, you will still have to pay other debts. A bankruptcy petition only discharges some but not all debts.

An example of debts that cannot be discharged is child support, alimony, some unpaid taxes, and any debts you may have incurred after willfully and maliciously injuring another person or property. If you are considering Chapter 7 bankruptcy, you could be eligible for a discharge of all or most unsecured debts. For instance, they are personal loans, utility bills, medical bills, back rent, and other consumer debts.

Once the bankruptcy discharges some of your obligations, you may be able to manage the remaining debts if you already have a regular income. Your assets could also be sufficient to cover the remaining debts, and then you can start a new life free of obligations. Therefore, if you are struggling to pay your debts at the moment, speak to an experienced Costa Mesa bankruptcy lawyer. The lawyer will evaluate your situation and advise you accordingly.

You Could Stop Foreclosure on Your Property

If you have obtained a property on loan, you risk losing it if you cannot make payments as per the agreement between you and your lender. Foreclosure is simply an attempt by your lender to recover the remaining balance of a loan you owe them by forcing a sale of the property you obtained on credit or an asset you used as collateral for that loan. Many people have lost valuable assets through foreclosures. If you feel that you could be next, you might save what you value the most by filing for insolvency.

But before that, it is essential to understand how bankruptcy works and your rights if your creditor is about to foreclose your property. This is where the valuable advice and support of an experienced Costa Mesa bankruptcy lawyer comes in. Bankruptcy laws are quite complex. It could be hard for an ordinary person to understand them without legal help. Again, if your property is about to be foreclosed, you need to act fast if you want to save it. An experienced lawyer can navigate the legal system quickly enough to protect your property on time.

Bankruptcy Can Stop Auto Repossession

A car is probably among the most valuable assets you currently own. Hence, you need to protect it as much as you can. Unfortunately, your auto loan lender can repossess it if you are unable to complete your payments. If you are already struggling with other debts, you may suffer an auto repossession soon enough. The good news is that the situation could be salvaged by applying for bankruptcy.

Once the court receives your application, you may be able to stop the repossession of your car even before your bankruptcy situation is concluded. If your creditor has already repossessed your vehicle, you may be able to have them return your vehicle under certain circumstances. The most important bit is that you may not be losing your car after all. As if that is not enough, you may benefit from a workable plan that will enable you to pay back your debts without suffering more than you already have.

Remember that even if your creditor has repossessed your car, you’ll still have to pay back the loan balance plus the interests. Filing for insolvency might help you keep your vehicle as you work on a plan by which you will repay your debts, including that auto loan.

You Could Prevent the Cutting Off of Utilities

Utilities are essential as they help us cope every day. We need water, power, cooking gas, and garbage collection services to survive. However, you are required to make prompt payments to continue enjoying these services. Since you are struggling financially, you may not have made payments for several months, causing utility companies to consider cutting off their services. It’s impossible to survive without some of these utilities. That’s why you need to act fast to prevent the cutting off of essential services. Fortunately, considering bankruptcy can help you deal with that.

If your utilities have already been cut, applying for bankruptcy might cause them to be turned back on, even before you are up to date with your repayments. The court will allow you to continue enjoying the utilities until your matter is concluded. Remember that utilities are some of those debts that can be discharged after bankruptcy. It means that you might even gain relief from repayment of your accrued utility debts. It will give you a chance to start afresh, free of late or skipped payments. But even if your utility debts are not discharged, you will have enough time to make payments as you continue enjoying the services.

 You Could Stop or Prevent Wage Garnishment Actions

Wage garnishment actions occur when a court orders your employer to withhold some of your money and send it directly to a creditor. It could have happened to you, and now you are receiving less pay that isn’t enough to cater to your needs and other debt repayments. Filing for insolvency can help you stop any wage garnishments you might have and allow you enough time to make payments without much pressure. The main solution in preventing a wage garnishment without applying for bankruptcy is if you paid your debts in full. However, if you are deep in debts, the best available option is to file for bankruptcy.

If your wage is already being garnished, or you are afraid of wage garnishments soon, filing for Chapter 7 bankruptcy could help stop them. Once you file for bankruptcy, the bankruptcy court will issue an automatic stay on all your creditors. It means that creditors must stop any efforts to demand payment from you during the bankruptcy period, including garnishments. Once your case is determined, you will have a better plan on how you’ll make payments to your creditors. You may even gain relief from those debts.

You Have a Chance to Dispute Your Creditors’ Claims

Some of your creditors might try to collect more money than you owe them. If you are not careful enough, you may be making more payments than you should. Bankruptcy offers you a chance to dispute any claims from your creditors, especially if you are sure that you don’t owe them as much as they claim.

An experienced Costa Mesa bankruptcy lawyer will help you determine the exact amount of money you owe others. If one or more creditors claim you owe them more than you do, you will be able to dispute them in bankruptcy court. You might even realize that you do not owe as much as you previously thought, making it even easier to repay your debts.

Important Points To Note When Considering Bankruptcy

Filing for insolvency doesn’t cancel your creditor’s rights to claim a repayment, especially on a secured loan. You will still owe them and will have to make payments to be free of debts. However, you will have bankruptcy trustees to help you manage your money and other assets for more manageable repayments. Your trustees may have to auction some of your valuable assets or help you develop a better loan payment plan, depending on the kind of bankruptcy chapter you choose to file.

If you have been behind on child support or alimony payments, bankruptcy will not take those debts away. Eventually, you will have to pay what you owe in full. As earlier mentioned, alimony and child support are among those debts that cannot be discharged by bankruptcy. You will have to go back to when you stopped making payments to determine the exact amount of money you owe your ex-partner.

Bankruptcy will also not relieve your cosigners from their obligations to repay. If someone appended their signature as a cosigner, it means that they contractually agreed to pay off your debt if you failed to do so.

Finally, consider engaging the services of a qualified Costa Mesa bankruptcy lawyer. The legal process of filing for insolvency in California is complicated, and only an experienced lawyer can help you navigate it with ease. Your lawyer will first review your financial situation to advise you on whether or not to file for bankruptcy. If you are convinced that bankruptcy is the best option you have at managing your debts, your lawyer will guide you through the process. The right lawyer will have your best interests at heart. He/she will do their best to protect your rights against violation.

Find a Costa Mesa Bankruptcy Lawyer Near Me

If you’re deep in debts and would like help managing them, bankruptcy might be a good idea. It could be an excellent chance for you to start all over again, with no debts. However, you need the help of a competent bankruptcy lawyer for a smooth and more rewarding process. At Los Angeles Bankruptcy Attorney, we have what it takes to advise and guide you through all the legal processes involved until your desires are met. We offer support during and after the legal processes until you are back on your feet once more. Call us at 424-285-5525 today and let us discuss your options.