Bankruptcy lawyers in Los Angeles can provide you with legal advice and counsel when you are facing financial difficulties. If you are considering filing for bankruptcy, then it is important to speak with a bankruptcy attorney who can help you understand the process and your rights.
Los Angeles bankruptcy law can be complicated and difficult. Although bankruptcy may seem like a lot of paperwork on the surface, clients need to be very familiar with the details. You could lose your house, car, or small business if you simply fill out the forms.
Chapter 7 is also known as liquidation. Many clients believe that filing for Chapter 7 will result in the loss of all of their assets. Chapter 7 is a powerful legal tool and does not take away all assets. It gives clients a fresh start. The automatic stay, which is a bankruptcy chapter filing, immediately stops any creditor collection efforts.
Clients who file for Chapter 7 bankruptcy in Los Angeles can usually keep their house (unless it has a lot of equity), their car, and other assets. They also get rid of any credit card debt, medical bills, and other discharging debt. Clients can select certain exemptions when filing for bankruptcy. This means that they are not required to become homeless because of the filing.
The bankruptcy lawyers in Los Angeles should examine your net household income as well as your expenses when filing for bankruptcy relief. This is the same thing that the bankruptcy trustee will do. Chapter 7 may not be available to you if your disposable income exceeds the law’s standards. You may find that Chapter 13 is a better option. In this instance, you can still file Chapter 13 and pay only cents per dollar to unsecured creditors. This scenario will still be a win-win for you.
Chapter 13 – This is a program for debt restructuring. You can catch up if you are behind in your secured debt payments by making manageable payments to the arrears (past due amount) through a Chapter 13 plan that lasts 3 to 5 years.
Consider a situation where a person is unable to pay $10,000 on their mortgage and a foreclosure sale has been set. The person can file Chapter 13 to repay the mortgage debts over 3 to 5 years. The foreclosure has been stopped.
Chapter 13 may also be an option for homeowners who have lost their jobs and are behind on their mortgage payments. They regained their employment but didn’t have the money to pay off the bank immediately. They can repay the debt in Chapter 13 over 3 to 5 years. It also stops foreclosure.
Tenina Law, an experienced bankruptcy lawyer in Los Angeles, has over 20 years of experience on both the debtor and creditor side of the bankruptcy process. We will assess your financial situation and determine whether bankruptcy is right for you.
It is difficult to comprehend and each situation is unique. Los Angeles bankruptcy lawyers are experienced and can help you see the issues clearly, point out the relevant issues, and then advise you on how to proceed. Contact Tenina Law today!