Whether you’ve already been involved in a car accident, or you just got into a fender bender. Our Los Angeles bankruptcy attorney will work with you to find the best solution for your financial situation. We understand that people do not always have enough money to pay all their bills, and we want to help them find a way out of debt while protecting their assets.
Our blog has more information about a variety of debt topics. Find out if you are judgment proof and how it affects your debt. California’s wage garnishment laws are explained. They explain when wages can be garnished and how much. You might be concerned about certain debts like payday loans or car title loans. Learn how to get rid of them. Perhaps you are trying to manage your debts by using debt settlement or another method.
You’ve likely grown tired of receiving phone calls from collection agencies, threats of lawsuits, and the constant struggle to pay your debts. Bankruptcy can be a way to begin over. Bankruptcy is a way to organize your finances and start over with nothing – no more debts, no more problems with creditors. Although it may seem scary, bankruptcy is there to help you manage your debt and not punish you for it.
There are two types of consumer bankruptcy. Both of these types include automatic stay protection, which protects against creditors during bankruptcy proceedings. The automatic stay prevents all collection actions, repossessions, and foreclosures during your bankruptcy case.
With the assistance of your attorney, Chapter 13 bankruptcy allows you to work with your local bankruptcy trustee and creditors to develop a payment plan you can manage. You will be able to keep enough money to cover your living expenses as well as to pay your secured debts like your auto loan and home mortgage. Your unsecured creditors will get the rest of your debts. Your remaining debts will be “discharged” or forgiven after three to five years. Chapter 13 debtors often end up paying pennies per dollar for unsecured debts.
The other option for consumers is Chapter 7 bankruptcy (or “liquidation”) bankruptcy. Only those who really need Chapter 7 protection are eligible. Those with the financial means to file Chapter 13 must apply. Chapter 7 allows you to surrender any non-exempt property to a bankruptcy trustee. The trustee will then sell the property and use the proceeds for your unsecured creditors. Once all your non-exempt assets have been sold, your remaining debt will be discharged. California has many exemptions that will allow you to keep your most important assets like your car, home, and other valuable assets.
You have the option to file either type of bankruptcy. Creditors no longer have any claim against you after your debts have been discharged. You are free from all debts. There are no more collection calls or threats of wage garnishment or property seizure. You can start rebuilding your financial health.
Our blog contains more information about specific bankruptcy topics such as how bankruptcy affects cosigners and how bankruptcy affects an underwater mortgage. Don’t forget our guide on how to prepare for bankruptcy.
Our firm has one of the most prominent bankruptcy law attorneys in Los Angeles California. We are proud to have been awarded numerous awards and recognition. We are proud to be Board Certified in bankruptcy law. Tenina Law has expert bankruptcy attorneys in Los Angeles. Call us today!