How Long Do Bankruptcy Notations Stay On Your Credit Report
If paid in time before bankruptcy, the accounts themselves will be kept for seven years from the date the bankruptcy filing is filed. The good news is that over time, your bankruptcy scores will affect you less and less until they are automatically removed from the report when you begin to recover your credit.
What Are Some Different Bankruptcy Options
- Chapter 7: Liquidation
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California Bankruptcy Means Test
When Congress amended the Bankruptcy Code in 2005, it created the âmeans testâ to make sure folks canât abuse the United States bankruptcy system. The bankruptcy means test starts by comparing your household income to the median household income of a household of the same size in the Golden State.
If youâre not a regular wage earner, and instead get paid on commissions or per job assignment, remember that this test is based on the 6 months before your bankruptcy filing date, not including the month you file in.
Data on Median income levels for California
California Median Income Standards for Means Test for Cases Filed On or After May 1,2022
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What Is Chapter 11 Bankruptcy
Chapter 11 is a form of bankruptcy involving the reorganization of a business’s debt and assets. The debtor business must create a repayment or, rather, reorganization plan, and if that plan is followed through, the remaining debt will likely be discharged. The terms of the plan, however, must be fulfilled. And if fulfilled, then a Chapter 11 bankruptcy can benefit you in more than one way, including reducing interest rates and reducing monthly payments.
This type of bankruptcy is the most expensive to file and can be quite complex. Before filing Chapter 11 bankruptcy, it is important to carefully analyze and explore all other options a business may have with regard to its debt. If Chapter 11 bankruptcy is the right course of action, it has the potential to help businesses to secure a solid financial footing again.
Dont Do It Alone: Contact Our Irvine Bankruptcy Attorney
How many times can you file for bankruptcy? The answer is: as many times as you need to within certain time limits.
If youre considering filing for bankruptcy in California and have filed in the past, its very important that you talk to an attorney. There are some exceptions to the rules and your attorney can let you know if youre eligible.
If you have any questions regarding bankruptcy in California, do not hesitate to reach out to our Irvine bankruptcy attorney today!
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Doesnt Filing For Bankruptcy Ruin My Reputation And My Life
Not if it gets you out of debt. You might be able to run from creditors for a while, but eventually the stress of that overwhelms people. Bankruptcy lets you stop running and start over again. It may take a few years for you to get loans and obtain credit again, but at least youll have that opportunity. Bankruptcy is meant to give people who made financial mistakes a second chance. In todays turbulent economy, that is a good thing.
How Long Does A Chapter 7 Bankruptcy Stay Open
You can expect a typical Chapter 7 bankruptcy case, which will take four to six months from the time you file your filing until you receive your affidavit .
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How To File Bankruptcy In California
If you need to file for bankruptcy in California, then there are several options you must decide on first. You must first determine if you want an attorney to represent you or you will be representing yourself in your bankruptcy case. Below are the steps that you need to take regardless of whether you represent yourself or you are represented by an attorney. Although it is not advisable to represent yourself in a bankruptcy case if you decide you want to file for bankruptcy in California on your own then these are some steps that you should take:
1. Gather Necessary Documents -The documents you will need to gather to complete your paperwork include
- 6 months of Paystubs or Other Income Verification If you are unemployed or have other income then you should have that this information to complete your documents
- Asset Information- Gather documents that provides information on any assets you have including bank accounts, whole life insurance policies, IRA, 401K, Retirement, Vehicle Value
- Last 2 years of Filed Tax Returns 4 years are generally required for Chapter 13 bankruptcy cases.
If you are represented by a bankruptcy attorney, they will also request that you gather these documents and provide them to their office. These documents are needed to complete your bankruptcy schedule and petition.
If you are represented by an attorney, then the attorney will generally complete this process. They should ensure that the assigned trustee receives your tax returns.
The Difficult Decision To File For Bankruptcy Protection
Practically nobody looks forward to bankruptcy as the way to resolve intense financial pressures or problems with a particular creditor. Unfortunately, delaying too long in filing for bankruptcy relief can hurt your ability to protect assets while getting rid of debts. For dependable advice about the pros and cons of bankruptcy and which chapter to file under, contact knowledgeable attorneys at Freedom Law Firm.
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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.
Dealing With Your Car
If you own your car free and clear , make sure to claim the appropriate bankruptcy exemption under California law to protect this value. If you have a car loan, bankruptcy law gives you 3 options for dealing with it. You can surrender it to the bank and discharge the loan, you can purchase the car for its current value and discharge the rest of the loan, or you can keep everything the same by entering a reaffirmation agreement with the bank.
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Unmatched Experience & Success
Since 1993, we have worked with countless Californians just like you who are struggling with their mounting debt and the intense pressure that comes along with it. We understand what a difficult time you are going through, and we want to help.
Being in debt isnt something to beat yourself up overin fact, itsa common reality for most Americans to some extent. For those with significant debts there are options for consolidating or even discharging it entirely. This is where The Turoci Bankruptcy Firm comes in.
AtThe Turoci Bankruptcy Firm, we take the time to listen to each of our clients’ individual struggles and needs to come up with a personalized solution that will get them out of debt as efficiently and painlessly as possible. We recognize that everyones situation is different, so we listen carefully to your individual needs and take your input into account throughout the entire process.
If you are too busy to come to our office in person, we will work with you over the phone and allow you to complete processes online or by mail when available. We seek to provide the most comfortable and convenient solutions so that you can get debt free without adding more hardship to your life.
Bankruptcy may be a stressful and challenging process, but it is also a path to a new lifeone without the stress and shame you may have already been experiencing for months or even years. You may even be able to take advantage of abankruptcy alternative to get yourself out of debt.
Which One Should I Choose
Chapter 7 is, by far, the more popular form because its cheaper, quicker and effective at relieving responsibility for debt if you qualify! And thats a big if. You must pass a means test, meaning your disposable income is under the median income in your state. If you dont qualify for Chapter 7, you can always fall back on Chapter 13.
You Will Be Discharged From Bankruptcy
A discharge releases you from the legal obligation to repay the debts you had as of the date you filed for bankruptcy, except for specific types of debts that are excluded by law. These include alimony and child support payments, student loans , court-ordered fines or penalties, and debts arising from fraud.
The timing of your discharge depends on a number of factors, including whether this is your first bankruptcy, and whether you are required to make surplus income payments.
Timing of your discharge from bankruptcy
If this is your first bankruptcy and you are not required to make surplus income payments , you will be eligible for an automatic discharge from bankruptcy in nine months. If your surplus income is higher, your bankruptcy will be extended to 21 months and you will be required to make payments from your surplus income.
Your discharge from bankruptcy will happen automatically if
- the discharge is not opposed by the LIT, a creditor or the Office of the Superintendent of Bankruptcy
- you have attended the mandatory financial counselling sessions and
- this is your first or second bankruptcy.
To ensure that a greater percentage of debts is repaid to creditors, the following standards set out when an automatic discharge will occur.
|Surplus income is greater than $200 per month||36 months after filing|
Downsides Of Electronic Self
The biggest downside to eSR is that it is . At the moment, only people who live in certain parts of California are able to use Electronic Self-Representation. Electronic Self-Representation is available to anyone who would file for bankruptcy in the Central District Court of California.
In the future, other states may create their own programs like eSR to help guide individuals without attonterys through the bankruptcy process. You may want to check to see if your state has recently implemented their own eSR program.
However, even if you do not live in California there are other options you can take advantage to help you file for bankruptcy. For instance, there are a wide range of that can be cheaper than an attorney, but still take you step by step through the bankruptcy process. The downside to using these programs is that they can be expensive.
Fortunately, there are free alternatives available too that can help guide you through the process for filing for bankruptcy. Even if you do not live in California, you can take advantage of free resources like , a free bankruptcy non-profit, in order to file for bankruptcy. Upsolve helps guide individuals throughout the entire bankruptcy process for free and you can see if you are eligible online.
How Does Bankruptcy Work In California
A common misconception many applicants believe is that filing for bankruptcy falls under California state law. This isnt true, as the process involves federal law and works by unwinding any contracts an individual might have with their creditors.
Such a process is what gives applicants a fresh start and frees them of their debt. However, Californias laws also come into play during this procedure. These state laws dictate the property individuals may keep after they file for bankruptcy in California. Such proceedings are covered under Title 11 of the Bankruptcy Code. Most cases are handled under three main chapters, which are Chapter 11, 7, and 13.
Benefits Of Electronic Self
There are three main benefits to filing for bankruptcy by using Electronic Self-Representation. Using eSR is free, using eSR helps guide you through the process of filing for Chapter 7 bankruptcy, and using eSR allows you to be flexible in when you work on your bankruptcy petition.
First, using eSR is free. There is no cost or software to purchase required before you use eSR to file for bankruptcy. However, you will still have to pay the court a fee in order to file for bankruptcy unless you petition the court for a fee waiver.
Second, Electronic Self-Representation has a guided step by step process that gives you up to 45 days to complete and you can access it at anytime. If you feel like filing for bankruptcy seems daunting then eSR may help ease the process for you. Californiaâs Electronic Self-Representation program will help you along at every step of the process so you can successfully file for bankruptcy.
If you need additional help, there are available online, as well as a hotline to get assistance with eSR. You can also call the Courtâs hotline where they can help you with your specific questions. In summation, eSR is designed to be accessible and easy to use to help you successfully file for Chapter 7 bankruptcy.
The Electronic Self-Representation program also gives you 45 days to complete your petition. That means even if something unexpected comes up, there will still be plenty of time for you to get back to working on your bankruptcy petition.
Print Your Bankruptcy Forms
Once you have taken credit counseling, collected your documents and completed your California bankruptcy forms, and made a game plan on how to handle the filing fee, youâre ready to officially begin the process of filing Chapter 7 bankruptcy in California.
If you completed all documents on your computer, print everything out twice so you have a copy for your own files. If youâre filing without any help, remember there are a lot of different forms that make up the full filing package, so having a checklist will come in handy.
What Do The Different Chapter Numbers Of The Bankruptcy Code Mean
The common chapters of the Bankruptcy Code are: CHAPTER 7 Chapter 7 refers to a liquidation bankruptcy and can be used by an individual to obtain a discharge of many debts, without making payments in the future. CHAPTER 11 Chapter 11 is often called the reorganization chapter, it allows a corporation, partnership, or individual to reorganize property and debts without liquidating all assets. The basic goal is for a debtor to retain control of property and present a Plan of Reorganization for repaying creditors. If the creditors accept the Plan of Reorganization, and the court approves the plan, a debtor is able to reorganize personal, financial, or business affairs. CHAPTER 13 Chapter 13 refers to reorganization of debts by an individual who has regular income and debts that are below certain statutory limits. A Chapter 13 debtor proposes a Chapter 13 Plan which proposes a repayment schedule. It may also be used to pay taxes, child support, mortgage arrears and protect assets that would be liquidated in a Chapter 7.
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Bankruptcy In Sacramento County
Sacramento County, California is home to 1.4 million residents, with Sacramento as the county seat and Californias state capital. Sacramento County is vast at 994 square miles. Its southern tip abuts the San Francisco Bay and the county stretches northeast into Gold Country and the Sierra Nevada mountains. Sacramento County got its namesake from a Spanish cavalryman who named the region after the Sacramento River , and was created in 1850 as one of Californias original counties.
As of Census 2010, the median income for a household in Sacramento County was $43,816. The Sacramento County Bankruptcy Attorneys at Lockhart Park, LLP are dedicated to representing residents who are suffering from financial hardship throughout the Sacramento region. Approximately 106,475 Chapter 7 bankruptcies and 28,822 Chapter 13 bankruptcies were filed in California in 2013. Due to the residential housing bubble and eventual burst, Sacramento County residents suffered tremendously during the Great Recession and thousands were forced to file bankruptcy during the wake of the downturn.
At Lockhart Park, LLP, our Sacramento County Bankruptcy Attorneys have the knowledge and experience to protect your rights and pave a path to financial freedom if you are subject to insurmountable debt, wage garnishment, foreclosure, judgment, credit card bills, medical bills, or other obligations that are a burden to you and your family.
Bankruptcy Court Information
Representing Debtors Throughout The State In Personal And Business Bankruptcy
At the Law Offices of Michael Jay Berger, I represent debtors and creditors in bankruptcy proceedings throughout California. Filing bankruptcy is complicated, but I can make it simple for you. If you are being hounded by creditors, I can help you legally erase your debts and get a fresh start. If your business needs reorganization, I can help you obtain protection from your creditors while you reorganize. My fee is always much less than the amount I save you. My initial consultation is always free.