If you are heavily in debt, constantly dealing with persistent phone calls, emails and mail from creditors or collection agencies, or are losing sleep because you are having trouble paying for your monthly living expenses and debt obligations, you may consider filing a bankruptcy. Filing a bankruptcy petition may provide you relief and peace of mind because it will empower you to:
- Stop foreclosure on your home.
- End creditor harassment by phone calls, letters or emails.
- Prevent or end wage garnishment.
- Prevent your auto lender from repossessing your vehicle.
Personal Bankruptcy Options
There are two primary types of personal bankruptcy available to you depending on the amount of debt that you have incurred, as well as your personal assets. During our initial consultation, we will discuss and recommend the type of bankruptcy that you may qualify for, and that is best suited for your unique situation and financial goals. Contact our firm for an honest and compassionate assessment of your options.
Chapter 7 Bankruptcy
Filing Chapter 7 bankruptcy is the preferred solution for resolving debts, since most* of your debts will be completely discharged once your case is complete with no further payments required. Because of this, there are qualification requirements that must be met, including an income and means test. However, many individuals can qualify for Chapter 7, and we can file the appropriate forms on your behalf to ensure that you are eligible for discharge of your debts.
*The types of debts that can be discharged in Chapter 7 bankruptcy include credit cards, bank loans, and medical bills. However, you may remain responsible for payment of past due child support, unpaid taxes, and student loans.
Chapter 13 Bankruptcy
If you don’t meet the qualifications for Chapter 7, then you may be eligible to file for Chapter 13 bankruptcy. This is a less extreme option which allows you to set up a repayment plan with creditors under the supervision of the court. Some debtors prefer this approach since it gives them a chance to repay the debt and fulfill their obligations without the threat of legal action against them.
If you elect Chapter 13, we will advise you of how the court will determine the amount of repayment and the amount of time that you will have under the plan.
When we take your case, you can be rest assured that we will handle all of the legal formalities and documents that are required by the bankruptcy court. Before filing, we will need you to supply us with a listing of all of your debts and personal assets. You will also be required to go through credit counseling, and will have to appear in court with us at least once. For the average Chapter 7 case without adversarial actions, the whole process should take about 3-4 months to complete. During that time creditors are barred from trying to collect payment from you. We will help you understand the exemptions available in California so that you know exactly how bankruptcy will affect your personal assets.
Professional legal counsel from The Brownstein Firm can help clarify your thinking and bring calm when you are caught in the cross currents of financial confusion and feel the pressure of increasing debt with no end in sight. Our approach is to give you the peace of mind that your bankruptcy is being handled by an experienced attorney and with our professional attention. Our goal is to work toward the outcome that serves you best so you can start fresh with a sound foundation. Contact us today.