Whether or not to file or declare bankruptcy in California is an important decision to make. Before you decide to apply for bankruptcy, you should hold a comprehensive meeting with your bankruptcy attorney. A bankruptcy attorney will evaluate your debts and advise you on applying for bankruptcy or seeking another debt management option. If bankruptcy is an ideal option, you still have to decide whether to file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Again, your bankruptcy attorney will come in handy to guide you on the best bankruptcy option. If you need reliable counsel and guidance while applying for bankruptcy , the Los Angeles Bankruptcy Attorney can help. Our expert Panorama City bankruptcy attorney can guide you and help you make the right decisions.
What Bankruptcy Can Do for You
When weighing between applying for bankruptcy and other methods of handling debt, it is important to understand what bankruptcy can do for you. Below are some of the things that you can achieve through bankruptcy:
Relieve you of the legal obligation to pay a majority of your debts. Bankruptcy will assist you write-off a significant percentage of your debts
Bankruptcy, particularly Chapter 7 bankruptcy, can help you rebuild your credit history faster than when you do not apply for bankruptcy at all
Chapter 13 and Chapter 11 bankruptcy can help you catch up on your past-due accounts, mainly your secured loans like mortgages and auto loans.
Enable you avoid nagging calls from creditors. applying for bankruptcy stops all collection actions against you, including levies, garnishments, and foreclosures. If creditors continue to contact or harass you after applying for bankruptcy , you can take action against them through your Panorama City bankruptcy attorney.
All chapters of bankruptcy will enable you avoid tax consequences on your forgiven debts
All chapters of bankruptcy can help you remove judgment liens placed on your property
You can remove junior mortgage liens by filing for Chapter 11 or Chapter 13 bankruptcy
However, not all bankruptcy cases can achieve the benefits listed above. To get the most out of bankruptcy, you require the constant guidance of an experienced bankruptcy attorney. An attorney will assist you determine what you are eligible for and help you decide whether bankruptcy will work to the best of your interest or that of your business.
A Good Candidate for Bankruptcy
Who is a good candidate for bankruptcy in California? What are some of the factors that your bankruptcy attorney will consider while determining whether you should apply for bankruptcy? You might be an ideal candidate for bankruptcy if:
You have several debts, including credit card and secured debts that you can only manage to make minimum payments or no payments every month
You have accumulated debt that you can’t manage to clear in the next five years depending on your projected budget and while factoring in the interest rates
You have fallen behind on your mortgage payments
Creditors are calling you and threatening to sue you for failure to pay your outstanding debts
You have outstanding tax debts
Some creditors have initiated collection actions against you
If your current financial situation matches the one outlined above, you should consult your Panorama city bankruptcy attorney to discuss whether you should apply for bankruptcy. Consulting an attorney will not obligate you to take any action. It will give you the necessary insight to determine whether bankruptcy would work in your situation.
Consulting a bankruptcy attorney early enough will assist you gather enough information and enable you to make an informed decision regarding your financial situation. Most people wait too long before considering bankruptcy as a way of handling their debts. If you delay consulting a bankruptcy attorney, you might place yourself in a situation where bankruptcy is no longer an option for you.
applying for bankruptcy
Whether you decide to file for Chapter 7, Chapter 13, or Chapter 11 bankruptcy, your attorney will guide you through the process. Bankruptcy is a major decision that you should not take lightly.
Chapter 7 Bankruptcy
The first step when you decide to apply for bankruptcy entails listing your debts and assets. While listing your debts, you should classify them into secured and unsecured debts. Secured debts are linked to certain security, and they include mortgage and vehicle loans. All other debts fall under unsecured debts.
When you file for Chapter 7 bankruptcy, you will be able to wipe out most of your unsecured debts. However, you will not be able to wipe off your secured debts unless you intend to surrender your property or asset. Therefore, if you are mainly struggling to pay your mortgage or car loan, filing for Chapter 7, bankruptcy may not be the ideal option. However, filing for Chapter 7 bankruptcy will remove the pressure of your unsecured debts and make it easier for you to meet payments for secured debts.
While applying for bankruptcy , your attorney will assist you prepare all the important paperwork and file it with the bankruptcy court. Bankruptcy filing information includes a list of your debts and your creditors. It also includes your income, assets, expenses, and your financial transactions for the past few years. Upon applying for bankruptcy , you will get automatic stay protection that prevents creditors from taking action against you. The bankruptcy court and your bankruptcy trustee will handle all the aspects of your finances, and creditors will no longer contact you directly. Once you apply for bankruptcy, all the creditors listed in your bankruptcy form will receive a notification.
After selling your non-exempt property and handling your secured debts, all the remaining unsecured debts will be forgiven. You will no longer owe the creditors the unsecured debts, and they can’t attempt to collect the debts from you. Unsecured debts that you can discharge through Chapter 7 bankruptcy include:
Credit card debts
However, certain debts are not dischargeable under Chapter 7 bankruptcy. The non-dischargeable debts will survive Chapter 7 bankruptcy, and you will still need to address them even after you apply for bankruptcy. Debts that you can’t discharge include:
Child support loans
Spousal support loans
Debts incurred due to drunk driving charges
After filing for Chapter 7 bankruptcy, you will be free of a significant percentage of your unsecured debt. You will have an opportunity to start afresh on a clean slate and rebuild your credit history. Your bankruptcy will remain on your credit rating report for ten years, which will lower your credit rating. You can start rebuilding your credit history by getting a new credit card and making timely payments for your other loans.
Chapter 13 Bankruptcy
If you opt to file for Chapter 13 bankruptcy, your Panorama City bankruptcy attorney will assist you to create a 3-5 year repayment plan and present it to your creditors. You will commit to paying part or all of your debts depending on your future income. Chapter 13, bankruptcy is ideal if you intend to retain your secured assets like your house and your vehicle. Unlike Chapter 7 bankruptcy, which is a liquidation plan, Chapter 13 bankruptcy is a reorganization plan.
The financial reorganization plan under Chapter 13 bankruptcy shields the debtor against collection action during bankruptcy. A discharge under chapter 13 bankruptcy may cover some debts that can’t be discharged under Chapter 7 bankruptcy. The financial reorganization is a great way to regain control of your financial life and protect your assets. When would it be ideal to file Chapter 13 bankruptcy?
You have outstanding debts that are not dischargeable under Chapter 7 bankruptcy. Such debts include child support, taxes, marital property settlements
You have liens that exceed the value of the assets that secure your debts
You are behind on your house or your car payments
The value of your assets exceeds the available exemptions
You are currently dealing with retirement fund loans that are not allowable under Chapter 7 bankruptcy
Which debts are wiped under Chapter 13 bankruptcy but can’t be wiped under Chapter 7 bankruptcy? Chapter 13 bankruptcy will eliminate certain debts like non-support debts incurred in the course of divorce and recent tax penalties. You will have more time to pay debts that you can’t eliminate under either chapter and cure defaults on secured loans. To be eligible to file for Chapter 13 bankruptcy, you should have ample and regular income that exceeds your expenses.
Your Panorama City bankruptcy attorney will assist you prepare for bankruptcy hearings and help you know what to expect. In most bankruptcy cases, you will only have to attend the meeting of creditors. During the meeting of creditors, you will meet with you bankruptcy trustee and the creditors who will attend. The meeting of creditors is usually short and simple. You will answer several questions regarding your bankruptcy forms and your financial details.
At times, you may have to appear before the judge in a bankruptcy court hearing, mainly if complications arise or you wish to dispute a particular debt. If you need to appear before the court, the bankruptcy court or your bankruptcy attorney will inform you about the date and the hearings' time.
What Bankruptcy Can’t Do
Bankruptcy can relieve some of your financial burdens but can’t cure all of your financial problems. Bankruptcy can’t discharge certain categories of debts. You can’t eliminate the rights of secured creditors by applying for bankruptcy . You can’t protect co-signers on your debts by applying for bankruptcy . If a friend or a relative has co-signed your loan and you discharge the loan in bankruptcy, the co-signer may still have to repay all or part of the loan.
The Roles of your Bankruptcy Attorney
When filing bankruptcy, you have a higher chance of succeeding when you work through a bankruptcy attorney. Ways in which your bankruptcy attorney will assist you as you apply for bankruptcy include:
A bankruptcy attorney ensures that you understand everything about bankruptcy
Deal with the creditors on your behalf, prevent you from harassment, and make the bankruptcy procedure smooth
Represent you during the meeting of creditors and in the bankruptcy court
An attorney will assist you compile all the necessary documentation and file the required paperwork with the bankruptcy court
Help you disclose and value your assets
Why Choose Our Services?
Your choice of a bankruptcy attorney is a crucial contributing factor to the outcome of your bankruptcy case. It is common to feel overwhelmed and confused when you have many options for attorneys to choose from. With so many bankruptcy attorneys in Panorama City, why should you choose our services?
We Have Vast Experience
We have vast experience in practicing bankruptcy. Our attorneys have helped many clients in Panorama City to apply for bankruptcy successfully. Bankruptcy is a technical field, and you should never take chances when choosing an attorney. You should work with a Panorama City bankruptcy attorney with a proven track record. An experienced attorney understands how to relate with their clients, and they are professional in everything they do. Our attorneys understand all aspects of bankruptcy and do everything possible to achieve your bankruptcy case's best outcome.
Our Attorneys are Responsive
Our bankruptcy attorneys are responsive and good listeners. These qualities are important because they will yield better interaction and understanding between you and your attorney throughout the bankruptcy proceeding. An attorney should allow you to voice your interests and then advise you accordingly. Responsive attorneys are always good executors. With our bankruptcy attorneys, you will be free to ask all questions that might come up during the bankruptcy proceeding.
Great Communications Skills
A good bankruptcy attorney must have excellent communication skills. No one would want an attorney with poor communication skills to represent them in court. Our attorneys have what it takes to negotiate with creditors effectively. Our attorneys also have proper negotiation skills and will present your case effectively in a bankruptcy court and help you liaise with the trustee. By choosing to work with us, you will increase your likelihood of winning your bankruptcy case.
Find a Los Angeles Bankruptcy Attorney Near Me
The outcome of your bankruptcy case will only be as good as the choice of your attorney. You should take time to seek referrals and go through reviews of different bankruptcy attorneys to ensure that you choose the best. If you need the best legal representation while applying for bankruptcy , the Los Angeles Bankruptcy Attorney will assist you to get the best possible outcome for your case. Contact us at 424-285-5525 and talk to one of our attorneys today.