If you have been struggling to control your debts, you may find the solution in filing for bankruptcy. Bankruptcy gives you a fresh start in life and could relieve you of some of your debts, leaving you to pay those that you can easily manage. The process can be complicated; that is why you may need the help of an experienced bankruptcy attorney. If you are filing for bankruptcy in Cahuenga Pass, contact us at the Los Angeles Bankruptcy Attorney. We can work closely with you, help you examine the pros and cons of each option available for you, and guide you through the solution that best fits your situation.
Benefits of Filing for Bankruptcy in Cahuenga Pass
Your creditor requires you to do your best to pay back the loan on the agreed terms when you obtain credit. Unfortunately, not many people can honor loan repayment terms. Sometimes you might find yourself with more than one credit but cannot manage all your debts with your income. If you are in that situation, you might consider filing for bankruptcy. Bankruptcy is a legal process that has its advantages and disadvantages. You have to weigh both to make the final decision. Some of its benefits include:
You Gain an Automatic Stay Against Your Creditors
If you have not been honoring your credit repayments, your creditors will probably call you now and then, pressuring you to make the payments. Even though they are right, these calls can be very annoying. It is not easy to convince all your creditors that you have no means to pay them back, even if that is true. They will still call, pressure, and sometimes threaten you if you don’t honor the repayment terms.
Filing for bankruptcy gives you an automatic stay against your creditors. The court issues an automatic stay against any debt collection activity involving you. Note that this does not cancel the debt; it only suspends the debt collection for a certain period or until the bankruptcy case is concluded.
The automatic stay stops any calls and letters from debt collectors. It will stop your creditors from filing a lawsuit against you. It also prevents any wage garnishments, property repossession, and mortgage foreclosures.
If, after the court grants the automatic stay, your creditor tries to collect their debts, you are free to take legal action against them through your Cahuenga Pass bankruptcy attorney. The court will stop any collection attempts on them; fine or even make them pay damages you might have incurred.
You Might Gain Relief From Dischargeable Debts
Dischargeable debts refer to debts obligations that could be wiped out by a bankruptcy discharge. When the court grants you a discharge, you will no longer be obligated to pay any of those debts. Additionally, creditors will no longer be after you to collect the debts. Some of the debts that could be discharged by a bankruptcy process include utility bills, credit card debts, medical bills, and personal loans. An experienced Cahuenga Pass bankruptcy attorney can aggressively help you gain relief from more of your debts.
You Might Keep Your Property
The fear for most people that are struggling with debts is the possibility of losing some of their valuable properties like cars, a home, or a business premise. Filing for bankruptcy could help you keep some of these properties through bankruptcy exemptions. Exempting the property means that you maintain its ownership even after the legal process. Exemptions are available even for the most common bankruptcy processes like Chapter 7 and 13. Some exemptions will only protect a particular value of the asset, and others will protect the entire property.
You Can Start Building Your Credit Score
If you are not paying your creditors as you should, it will probably affect your credit score and could make it hard for you to obtain credit in the future. Filing for bankruptcy affects your credit, too, as the bankruptcy record remains in your credit history for years. However, the process gives you another chance to start afresh. You can start building your credit from scratch. It becomes even more comfortable when the court relieves you of some of your debts. With your income, you can slowly repay your credits and build a strong credit score with time.
What Can a Cahuenga Pass Bankruptcy Attorney Do for You?
The legal process involving filing for bankruptcy can be complicated. Thus, you need the help of an experienced bankruptcy attorney to navigate through it for a favorable outcome. Here is what your Cahuenga Pass bankruptcy attorney can do for you:
Planning for Bankruptcy
You may be thinking about bankruptcy but are unsure whether it is the right thing to do in your situation. An experienced bankruptcy attorney will be there to guide you through the right path. He/she will help you consider other alternatives to bankruptcy that could solve the issues you are facing at the moment. For example, if you want an alternative that will stop your creditors from harassing you, your attorney might help you utilize laws that could protect you from abuse and harassment.
However, if your situation’s only best solution is to file for bankruptcy, your lawyer will see to it that you are filing for the right bankruptcy. California bankruptcy laws provide several options for people that are in a similar situation like you. The most common options are Chapters 7 and 13. Each of these options has its pros and cons. your choice will be based on your current financial situation and what you expect after the process.
Preparing for the Process
California bankruptcy laws are quite stringent on who qualifies for bankruptcy and who does not. Thus, you need to be well prepared for the entire process. First, you need to take a means test to determine the kind of bankruptcy you are eligible for. The test will determine the value of your assets and income to determine the best way to clear off your debts. Then you will go through the valuation process when everything you own is given a dollar value. Your attorney will certify that you are disclosing everything you own and that the value each item is given is realistic.
Your lawyer will then guide you in choosing and applying for exemptions. This ensures that you are not losing your most valued assets. Then you will determine whether or not you have debts that could be discharged. An experienced attorney will understand how this works and make certain that you obtain relief from all debts that could be discharged as per the bankruptcy option you have chosen.
Completing Schedules and Paperwork
During the bankruptcy process, you will be required to file pages of your financial information, including your income, debts, expenditure, assets, and recent financial dealings. The law requires you to have this right, as you could face penalties for perjury if you don’t. You need an attorney to guide you through this process too. An experienced Cahuenga Pass bankruptcy attorney will know the kind of information you should disclose, how to price your possessions, the tax returns you should submit, what constitutes an income, and the expenses that are necessary and reasonable, among other details.
Support During Bankruptcy Case Proceeding
It is not enough to provide all the information required by the bankruptcy court for you to be declared bankrupt. The court will want to know more and obtain more evidence of your financial situation before making the final ruling. What happens during the case proceeding will significantly influence the outcome of your case. Thus, you need to be well prepared and to be guided even during the proceeding.
Your lawyer will give you a hint about what happens during a bankruptcy proceeding. He will prepare you for what you can expect, including the judge and bankruptcy trustees’ roles. Through proper guidance, you will know what to do to qualify for debt discharge and exemption. You will also learn the kinds of actions your creditors could take against you if you are eligible for bankruptcy.
Additionally, your Cahuenga Pass bankruptcy attorney will give your testimony in court to support your case. He/she will take you through an interview, from where he will obtain accurate information regarding the matter.
Handling Violations of the Automatic Stay
As previously mentioned, the court will grant you an automatic stay immediately after you file for bankruptcy. The stay puts on hold any activity by creditors to collect their money from you. Your creditors will not be happy with the move as all they want is for you to pay back their money as soon as possible. Therefore, some will violate the automatic stay and even try to contact you after the court order.
The primary duty of an attorney during a bankruptcy process is to protect your rights and interests. Therefore, you can expect your attorney to protect you from any form of harassment by your creditors. If anyone violates the court order, your attorney will take action against them by either demanding compliance or petitioning the court to hold them in contempt.
Negotiating With Creditors
The role of your attorney goes beyond representing your interests in the bankruptcy court. An experienced attorney will also know how to negotiate with creditors for better repayment terms. Remember that you may not have enough assets to clear off the remaining debts after the court discharges some. Therefore, you might need to negotiate with your creditors again on the best way to repay them.
Sometimes the only way out would be to sell off your valuable assets. But if you do not want to lose property or two, your lawyer will talk to your creditors so they can allow you to keep those assets.
An attorney that has handled similar cases in the past will quickly come up with a workable plan that will be agreeable for you and your creditors. His/her main interest will be to protect your interests and see to it that you are free from debts sooner than later.
Ensuring You Comply With Bankruptcy Requirements
You cannot afford to make a mistake while filing for bankruptcy, as a mistake could cause you to lose this chance of managing your debts. Bankruptcy courts have processes that must be strictly followed, documents that must be filed, and requirements that must be adhered to. Failing in any or more of those comes with costly consequences. For example, the court might throw your case out even before discharging some of your debts.
You may not be aware of these processes or requirements, which is why working with an experienced attorney is an excellent idea. With the help of an attorney, you will file all the required forms and pay filing fees on time, meet with creditors in the presence of your bankruptcy trustee without fail and obey all court orders, among others. Your attorney is your guide throughout the process.
Helping Rebuild Your Credit after Bankruptcy
As mentioned above, it is possible to rebuild your credit after bankruptcy. It will help you access credit in the future at an affordable rate. Your bankruptcy attorney’s primary role is to make sure that you are going through the legal process smoothly. However, an experienced lawyer will know more about the fresh start you have started after this process.
Allow your attorney to guide you in rebuilding your credit. You might benefit from great tips that could help you gain an advantage of any offers that might come your way after the process is over.
Find a Los Angeles Bankruptcy Attorney Near Me
If you have more debt than you can manage, filing for bankruptcy could be the right solution for you. However, you have to be sure about it before making the final decision. Again, you need to understand what the legal process entails and whether you will find the fresh start you seek in life. If you are filing for bankruptcy in Cahuenga Pass, call us at 424-285-5525. At the Los Angeles Bankruptcy Attorney, we will provide the advice and assistance you need to complete the process successfully. We will also be there to protect your rights and interests.