Accident Attorneys, Injury Attorneys, Bankruptcy Attorneys, Collection calls and credit cards Lawyer San Fernando Valley, Encino, Los Angeles, Riverside, San Bernardino, California
Filing for bankruptcy is a difficult and highly emotional decision. AT FIRST. To most people, BANKRUPTCY is a bad word. But in reality IT'S NOT! Most people would be surprised to realize that bankruptcy is actually another word for a FRESH START, meaning you can wipe out your debt, clean up your credit, and rebuild your finances.. Through different types of bankruptcies, people have been able to break free from all their debt. Just imagine that fresh feeling of not owing anyone any money. Just as exciting is the fact that a bankruptcy looks much better on your credit report than a bunch of unpaid and unmanageable debt. All those balances and late payments on your credit report will shortly disappear. When you don't owe anyone any money, you'll have much better opportunities to build your credit. That means having the ability to obtain loans, buy a new car, and even buy a house within a year or two.
Even more interesting is the fact that so many people are filing bankruptcies these days, that it doesn't carry the negative weight, effect, and stigma that it did before. In fact, filing a bankruptcy nowadays is considered to be more of a good business decision. Instead of being labeled a deadbeat or bad debtor, a bankruptcy will give you the opportunity to show creditworthiness with that fresh start and new financial future.
So call us to discuss options, and let us help you break those chains of debt.
Most individuals and small businesses who file for bankruptcy file what's called a Chapter 7 Bankruptcy. Chapter 7 Bankruptcy is the way to go for people that have a low income, are unemployed, or have a large family. It also works for businesses the same way when the business isn't generating enough money to cover its costs. In these situations, people's living and business expenses are over and above their income leaving no money to pay debts like credit cards, medical bills, loans and taxes. In Los Angeles and California, we're lucky to have laws making it easier to file bankruptcy and protect the things you own.
To be eligible for Chapter 7 bankruptcy, your monthly income needs to be at or lower than the average income for a family of the same size in the same county. This is called the means test. The means test is designed to determine your disposable income, or income that can be used for paying back your debts. The less disposable income you have, the better you'll qualify for Chapter 7 bankruptcy.
A Chapter 13 Bankruptcy is a different kind of bankruptcy designed for those that don't qualify for a Chapter 7 bankruptcy because they either make too much money, have assets that would be sold off and liquidated in a Chapter 7 bankruptcy, or they have debts like mortgage payments, car payments, taxes, student loans or child support payments that they need to get caught up on and can't wipe out in a Chapter 7.
A great reason to file a Chapter 13 for example is if your lender is trying to foreclose on your home because you're late on payments. The Chapter 13 Bankruptcy filing will immediately stop the foreclosure and give you an opportunity to repay the amount you're behind over 3 or 5 years.
Another word for a Chapter 13 Bankruptcy is a Reorganization, involving a 3 or 5 year payment plan where you can pay a percentage of your debts, based on what you can afford. None of your property is taken away in a Chapter 13, and there won't be any interest or penalties added to your monthly payments for the life of the Chapter 13 plan. Think of it more like a 0% interest loan to repay some or all of your debts,
If you make your Chapter 13 payments on time for 3 or 5 years, you will come out of the bankruptcy as follows: