Filing For Bankruptcy
The decision to file for bankruptcy is often one of the hardest choices that a person has to make in their lifetime. However, if your situation has become so severe that you are in danger of foreclosure, garnished wages or repossessions, or are facing debts that you are in no position to pay, putting off the inevitable can have devastating consequences.
Procrastination can cost you your car, your wages, and even your home. Filing your case in a timely fashion can spare you these losses.
- If you are close to foreclosure on your home, declaring bankruptcy may stop this going forward and even create a payment structure that will help you pay off your arrears.
- Bankruptcy may cause your car or other property to be given back to you if they have been repossessed by a creditor.
- Large medical bills combined with a loss of employment, or on their own can create a nearly impossible financial hole to climb out of. Bankruptcy can help you in this situation and possibly reduce or even wipe away your medical bills.
- Bankruptcy can stop harassing creditors from turning up on your doorstep, especially if they are being unfairly pushy or unreasonable or are fraudulently trying to take more than you owe.
- If your utilities have been shut off, bankruptcy will help restore these so you do not have to live in darkness.
- Although your student loans will not disappear, bankruptcy may help you to consolidate those debts and pay them off in a reasonable timeframe.
- Bankruptcy will end wage garnishment, which means you will be able to afford life’s necessities.
You may have more than one of these issues overlapping in your life and bankruptcy may be the best and most logical way to start your financial life over.
A Few Thoughts About Bankruptcy
What is bankruptcy? Bankruptcy is a tool that can help you deal with debt. Debt won’t go away by ignoring it or wishing it away. In fact, the more that you ignore your debts, the more unmanageable they will become.
The big question is this: How do you get rid of your debt? You feel weighed down, you can’t sleep at night, and you’re dragging this ball and chain around. You need relief from this burden. It is not always possible to pay back your debts that have spiraled out of control. We can help…
You are not alone.
Bankruptcy is a tool, not a dirty word. There is no longer a stigma to bankruptcy. It is a legal tool that is used by millions of people, companies and organizations. Even the United States Supreme Court calls bankruptcy a “fresh start”. Bankruptcy does not cause financial problems, it solves them. By using bankruptcy, you are using a legal and formal tool to officially wipe out and eliminate your debt.
Meanwhile, you can finally begin to rebuild your credit.
Avoid bankruptcy at all costs? While no one strives to go bankrupt, unfortunately life sometimes throws us a curve ball. Medical problems, loss of jobs, divorce and downturns in the economy are things you don’t plan. It seems that once your financial situation turns bleak, so do your family relationships, friendships and marriages.
Your main goal. The main goal in your life should be your health, your spouse, your children and your happiness. All those things are far more important than preserving an inflated credit score and trying to make minimum payments on credit cards that you will never pay off. Who is more important – your family or your credit card?
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often called the “Fresh Start” bankruptcy. Individuals are generally discharged of many types of unsecured debts such as credit cards, personal loans, medical bills and some judgments. Filing a Chapter 7 bankruptcy immediately stops your creditors from trying to collect. As a result, creditors cannot garnish your wages, empty your bank account, or go after your car, your house, and your personal belongings.
In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. In most California cases, you can wipe out all your debt, while still keeping your house, car and retirement savings.
Bankruptcy can be a new beginning, a way to end your bill problems and rebuild your life. But bankruptcy is not for everyone. That’s why before you can make the decision to file for bankruptcy, it’s important to get all the facts. That’s why we offer a no-cost, no-obligation initial consultation.
You need to feel comfortable and secure that the staff is experienced, qualified and will treat you with respect.
Is bankruptcy right for you? The only way to know for sure is to meet with our Bankruptcy team for a no-cost, no-obligation consultation. Together you will go through your situation and we’ll give you all of your options.
At the end of your meeting you’ll be able to rest assured that you’re in good hands. Because when you’re dealing with your financial future it’s important to have experience on your side.
Creditors have an army of lawyers. You deserve the same protection.
Chapter 11 Bankruptcy
Chapter 11 is a chapter of the United States’ Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy (although liquidation can go under this chapter), while Chapter 13 provides a reorganization process for the majority of private individuals.
Chapter 11 usually results in reorganization of the debtor’s business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may “emerge” from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is significantly different from a Chapter 7 bankruptcy. A Chapter 13 is a reorganization of debt, allowing debtors to repay all or a portion of their debts through a Chapter 13 plan, while protecting property and personal assets. The concept is similar to debt consolidation, but unlike most debt consolidation programs, it permits debtors to pay unsecured debt (i.e., a debt that is not secured by property) down without accruing interest (student loans are an exception) and without having to deal with those annoying calls from debt collectors.
One of the biggest advantages of a Chapter 13 bankruptcy is that is many cases; we are able to eliminate home lines of equity and/or 2nd mortgages.
Under a typical plan, you make monthly payments to a court-appointed bankruptcy trustee for generally three to five years. The amount of your monthly payment is determined by several factors, such as the amount of debt you have, your ability to repay and the extent that you have assets. The bankruptcy trustee distributes the money to your creditors.
We look forward to helping you in any way we can.
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