Chapter 7 Bankruptcy In California
HomeChapter 7 Bankruptcy in California
When your amount of debt begins to surpass your income, it may be time for a fresh start. Filing for Chapter 7 bankruptcy in Los Angeles, California will provide that fresh start by eliminating all or part of your debt, and setting up a payment plan for any remaining debts that are leftover.
If you are looking for a Chapter 7 bankruptcy attorney in Los Angeles please feel free to give us a call today and discuss how to best proceed with your case. Weve helped many California residents eliminate their debts so they can be exempt from these crippling payments, which keep them from being able to gain financial freedom. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy exist to help you get back on your feet and free yourself from your outstanding debts.
Consider The Pros Of Double Filing
Getting a Chapter 7 discharge and immediately filing for Chapter 13 will give you more time to pay back debts that cannot be discharged, such as child support or spousal support.
Similarly, if you just need more time to pay off your debt, you can consider filing for a second Chapter 13 early. This will not discharge any debt but adds another five years to your bankruptcy payment plan. This will buy you more time instead of having automatic wage garnishment applied to your paychecks.
If you did not receive a discharge during the first filing, you might get one in the second bankruptcy.
If you are considering double filing, you need to work with a bankruptcy lawyer to get it right. There are many nuances that could lead a court to declare that you have filed again in bad faith.
Can I Eliminate Student Loans In Bankruptcy
Student loans can be discharged, but only if you can show repaying the debt would cause you an undue hardship. Frankly, the Courts have interpreted this to make it almost impossible to get rid of student loans. You must show a complete inability to pay the loans now, and, that it is not likely that you will be able to pay the loans at any time in the future.
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What Happens When You File Chapter 7 Bankruptcy In California
No one opens a business expecting that it will fail, but the data can be grim. According to the U.S. Bureau of Labor Statistics, about 20% of small businesses fail within their first year of operations by year five, roughly 50% have shuttered.
When your small business fails, you can be on the hook for thousands of dollars or worse, saddled with insurmountable debt. Are you stuck with that financial burden forever?
Whether youre a business owner who has decided to close up shop or an individual whose debts have simply become unmanageable, your liabilities do not have to hang over your head for the rest of your life.
Bankruptcy is designed to help people and businesses resolve their debts so they can start anew.
Will I Lose All Of My Property When I File Bankruptcy
You can retain any property that can be exempt under the law. In Orange County and Riverside County, that usually includes the home, furniture, clothes, household goods, pensions, profit sharing, IRAs retirement plans, 401ks and other family keepsakes. You can usually file bankruptcy and keep all of this property.
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Can I File Another Bankruptcy Now If I Am Not Eligible For A Discharge Of Debts
Yes, you can.
Even if you are not eligible to achieve a discharge of debts, there are still reasons to file the next case, particularly a Chapter 13.
What are they, you might ask?
The automatic stay in bankruptcy, which prevents creditors from taking any collections actions during the bankruptcy case, still applies regardless of the ability of the debtor to discharge debts.
So how is this helpful?
Lets say you owe tax debts and the IRS wants you to pay them in full within 24 months. By filing a Chapter 13 case, you can stretch those tax payments over 60 months, at zero percent interest!
Same thing can be done with student loans, although unlike certain taxes, the student loans need not be paid 100% during the 60 month Chapter 13 thus, it may be necessary to file multiple back-to-back Chapter 13 cases to continue the protection on student loan payments.
Or, lets say youve just filed a Chapter 7 case and gotten your discharge, but you have a junior lien against your home that can be removed in a Chapter 13 case . In that case you can filed the Chapter 13 and remove the lien even though you wont be getting a discharge!
The above is known to bankruptcy professionals as doing a Chapter 20 case.
These, and more, are all possibilities to discuss with a qualified and experienced bankruptcy lawyer in your area.
Discharge In Prior Case
You are eligible to receive a discharge in Chapter 7 Bankruptcy even if you previously received a Chapter 7 Bankruptcy discharge, as long as the prior Chapter 7 case in which you received a discharge was filed at least eight years before the filing of your new Chapter 7 case.
You can also receive a Chapter 7 discharge in your current case if you previously filed for Chapter 13 Bankruptcy, so long as the prior Chapter 13 case in which you received a discharge was filed at least six years before the filing of your new Chapter 7 case.
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Experienced California Bankruptcy Lawyers
Have you previously filed for bankruptcy relief and are now wondering if you are eligible to file again? The attorneys at Resnik Hayes Moradi LLP can help. Call 344-0043, orcontact our firm online to arrange a free consultation.
Our bankruptcy professionals meet with clients from 7:00 a.m. to 7:00 p.m., Monday through Friday. Weekend appointments are also available.
Will A Bankruptcy Attorney Help File Bankruptcy Sooner
No, a bankruptcy attorney cannot help you get around the time limits set by the court. However, they can help you file a different kind of bankruptcy than which you first filed and confirm the earliest date to file the second bankruptcy. Your bankruptcy lawyer San Diego will be a great help in helping you with your second bankruptcy filing.
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What Exactly Is Needed To Be Eligible For A Cash Advance In North Park
A lot of people that submit an application for short term installment loans within the hillcrest area have actually bad credit and most likely cant be authorized for a bank or installment loan. The great news is the fact that a wage advance business will not be too concerned about your bad credit and so they mostly desire to make certain you pays back the mortgage. A california loan provider is needed to do their homework in qualifying you for the advance loan however it may also be significantly less documents and time needed when compared with a normal installment loan.
Now lets go through the price of a pay day loan. The charges for some online payday lenders in California will are the low of several dollars most of the way up to loan amounts with APRs that far surpass 100%. Ive seen costs because high as $50 for a fortnight. Therefore, exactly what does it suggest for your requirements? This means that the expense is going to be high before it comes due if you dont pay off the loan. That you can expect to pay from $7 up to $50 to borrow $200 for four days if you have your details, an online payday loan title loans near me will tell you.
Can I Keep My House And A Car In A Chapter 7
This is where Chapter 7 bankruptcy trustees get you. Maybe you threaded the needle and protected your home. But can you keep your house and a car in Chapter 7? Not always. If you were able to use California bankruptcy exemptions to keep your house, you have very little leftover protection. Whats left will cover your hubcaps and your Alpine stereo. Its possible under the right circumstances to keep your house and car in a Chapter 7 bankruptcy, but you really, really want to meet an Antelope Valley bankruptcy attorney first.
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How Many Times Can You File For Bankruptcy In California
Bankruptcy is a financial tool available to everyone in their time of greatest need. And it is often the only way to lay down your burden and relieve that overwhelming sense of financial stress.
But if youve ever filed in the past, its important that you understand when youre eligible to file bankruptcy again. There are some limits to keep in mind as you move past your previous bankruptcy filings.
Keep reading to learn how often you can file bankruptcy in the state of California.
Multiple Bankruptcies On Your Credit Report
You may need to consider a court date in between filing for multiple bankruptcies. In some cases, an automatic stay can expire before your next bankruptcy discharge is filed. You need to make sure the discharge happens before the automatic stay expires.
Your credit report may have language such as:
- Bankruptcy Chapter 13 – discharged
- Filing date: 01/01/2013Status date: 01/01/2014
It could also say “there is a bankruptcy on your credit report” or “you have recently filed for bankruptcy” without listing specific details.
Having multiple bankruptcies on your credit history usually means you will have a hard time finding lenders and low interest rates, and you will have a poor credit score for a year or more.
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You Must Qualify For Chapter 7 Bankruptcy
For Filing Chapter 7 and Chapter 7 Bankruptcy Information Including Unsecured Debt, Secured Debt, Exemptions and More
Chapter 7 offers a truly fresh start for those who qualify. See our page on the Means Test to find out more. Upon receiving your discharge order from the court, you are no longer legally required to repay your debts and begin your fresh start. As you can image, the Bankruptcy Laws were initially intended to help creditors not debtors. And with each significant change to the Bankruptcy Laws, especially in 2005, bankruptcy relief has become much harder to obtain, so its important that you seek sound advice and do whats best for you.
If you, like millions of others, are ready to help you wipe your slate clean from debt. Call us today for a free consultation in-person or over the phone and a skilled bankruptcy attorney will help you make the right decision, a decision that will undoubtedly change your life for the better.
How Chapter 7 Works
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. In addition to the petition, the debtor must also file with the court: schedules of assets and liabilities a schedule of current income and expenditures a statement of financial affairs and a schedule of executory contracts and unexpired leases. Fed. R. Bankr. P. 1007. Debtors must also provide the assigned case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case . 11 U.S.C. § 521. Individual debtors with primarily consumer debts have additional document filing requirements. They must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling evidence of payment from employers, if any, received 60 days before filing a statement of monthly net income and any anticipated increase in income or expenses after filing and a record of any interest the debtor has in federal or state qualified education or tuition accounts. Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302. Even if filing jointly, a husband and wife are subject to all the document filing requirements of individual debtors.
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California Chapter 7 Bankruptcy Court Locations
Many 341 meetings of creditors have been over the phone or over Zoom due to the pandemic. That said, you may want to see where the courthouse is in California if there are any meetings that need to take place in person. Below are the court locations for filing bankruptcy based on the bankruptcy district.
|Ronald E. Stadtmueller||564-9310|
In addition to the above, review California local bankruptcy rules before filing a bankruptcy case. Some local rules may differ slightly from the Federal Bankruptcy Rules.
California Bankruptcy Lawyer Cost
Depending on your situation, having a lawyer help you with your bankruptcy filing may be a good investment. Even though the low end cost of a bankruptcy lawyer can be as high as $1,200 , getting legal advice can save you money in the long run, especially if your property doesnât seem to fit into the California bankruptcy exemptions.
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How Does Bankruptcy Affect My Credit
A bankruptcy filing will stay on your credit rating for ten years. However, if you are considering bankruptcy, your credit rating is already probably has been hurt. Bankruptcy allows you to get a fresh start and rebuild your credit. Within the first year of a Chapter 7 bankruptcy, it will be difficult to get credit that is not secured. Even secured credit will probably be at a high rate of interest. After two to three years of making all of your payments, most people recover most, if not all, of their credit ratings.
What Is Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a way to reorganize your debt. It involves repaying none, some or all of your debt over the course of three to five years. One important difference between Chapter 13 and Chapter 7 bankruptcy is that in Chapter 13, your debts arent discharged and youre still liable to pay them.
With Chapter 13, most or all of your creditors are lumped together into one large pool. You then make payments each month to a lawyer called a trustee whos assigned to your case. The trustee distributes your payment to the creditors.
In Chapter 13, you can reduce the amount owed on secured loans, reduce interest rates, re-amortize loans for a lower monthly payment, remove certain liens, extend the time to pay back taxes, reduce the amount owed on unsecured loans sometimes down to zero and legally break leases, says bankruptcy attorney Dai Rosenblum of Butler, Pa. Because a Chapter 13 filing can extend up to five years, Rosenblum says many people use it to catch up on their mortgage.
When you proceed with a Chapter 13 case, you must file a plan detailing how some, or all, of the debts will be repaid over time. In addition, you or your attorney, in conjunction with the trustee for your case, will determine a reasonable amount that you can afford to pay back to creditors. That amount is based on your assets, monthly income and monthly expenses.
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How Often Can A Person File For Bankruptcy In California
For most people whofile for and complete bankruptcy, the fresh financial start is a relief. They recover from the difficult time and move on without having to file for another bankruptcy down the line. Some, though, find that a surprise medical bill, job loss, or some other financial stress results in the need for another bankruptcy filing. You may find, however, that filing for bankruptcy a second time is not as easy.
D California Debt Payoff Planning
You may be able to get out of debt through debt payoff planning, which is often a combination of trying to reduce expenses and putting extra cash into specific debts to avoid interest. You may not be able to do this because of the size of the financial hardship, but if you are interested, we build the Savvy debt payoff planner to help prioritize your debts. The app saves about $2,000 in interest on average by using the savvy debt payoff method instead of the snowball debt payoff method.
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When Are Multiple Bankruptcy Filings Abusive
The term abusive bankruptcy filing can refer to a Chapter 7 filing that doesn’t meet the means testthe qualification standard that determines a filer’s right to a debt discharge. But it can also describe a case filed by someone who inappropriately uses the bankruptcy process to evade a creditor or buy time in a collection action, such as a foreclosure or lawsuit.
Simply put, the court frowns on debtors who file with no intention of following through with the case. Repeat filers face the consequences for using such tactics, such as a lack of protection from collections or the denial of a discharge.