Consumer Action Law Group Lawyers Los Angeles CA Bankruptcy Attorneys Los Angeles Many good things happen the moment you file for bankruptcy. As soon as bankruptcy is filed, all debt collection calls MUST stop. The same is true for collection-related actions, such as auto repossession, home foreclosure, wage garnishment, and any lawsuits or legal proceedings.

what happens when you file for bankruptcy

Bankruptcy filing is the fastest and most effective way to get debt relief from creditors. A bankruptcy case must be filed with the bankruptcy court before debt relief is possible. Once a bankruptcy case is filed, most individuals are able to wipe out debt on their credit cards and stop creditors from making collection calls.

Benefits of Filing For Bankruptcy

man and woman looking over bankruptcy paperwork

Filing Bankruptcy does the following:

Eliminates credit card debt and medical bills, and IRS debt more than 3 years old
Stops wage garnishment, foreclosure, any kind of repossession [vehicles or appliances]
Stops collection lawsuits, tax liens, and personal loans

Generally speaking, when you file Chapter 7 bankruptcy, the strategy is to immediately stop all collections and to eliminate debt that is not attached to any home or vehicle or appliances. Filing bankruptcy usually allows people to keep their homes, cars, and personal belongings. The typical outcome of Chapter 7 bankruptcy is the elimination of credit card debt and medical bills.

If you have crushing debt, we highly recommend calling our experienced bankruptcy attorney to discuss your situation and get the best advice possible to see if Chapter 7 is an option for you. Call and talk to our attorney today. We give free legal advice and let you know right away if you qualify to file at 818-254-8413.

How Does Filing Bankruptcy Work?

consumer lawyer teaching a bankruptcy class

In general, the goal and the strategy for filing bankruptcy is to wipe out debts and keep your home, car, belongings, and savings. The most common types of bankruptcy are referred to as Chapter 7 and Chapter 13.

The difference between Chapter 7 bankruptcy and Chapter 13 has to do with the goal and strategy for filing. For example, Chapter 7 bankruptcy is typically the best option for debt elimination and Chapter 13 bankruptcy is the best option to save a home from foreclosure or to keep a car in danger of repossession. Chapter 7 bankruptcy is much more common and is generally a faster and less expensive process than Chapter 13.

If you need debt relief, we highly recommend calling our experienced bankruptcy attorney to discuss your situation and get the best advice possible to see if filing bankruptcy is an option for you. Call and talk to our attorney today. We give free legal advice and let you know right away if you qualify to file at 818-254-8413.

Filing Chapter 7 Bankruptcy

chapter 7 bankruptcy

Filing Chapter 7 bankruptcy is most effective when you want to eliminate debts. Chapter 7 bankruptcy is also a very effective way to stop collections, repossessions, lawsuits, and wage garnishment.

The most common reason to file Chapter 7 bankruptcy is to eliminate credit card balances & medical bills, and any other debts such as personal loans, tax liens, etc.

If you need immediate debt relief, we highly recommend calling our experienced Chapter 7 bankruptcy lawyer to discuss your situation and get the best advice possible. Call and talk to our attorney today. We give free legal advice and let you know right away if you qualify to file at 818-254-8413.

Filing Chapter 13 Bankruptcy

chapter 13 bankruptcy

When a homeowner or a vehicle owner has fallen behind on payments, a common strategy is to file Chapter 13 bankruptcy to stop foreclosure and vehicle repossession. Filing Chapter 13 also eliminates all credit card balances & medical bills, and any other debts such as personal loans, tax liens, etc.

Filing Chapter 13 is an effective way to immediately stop foreclosure. The minute you file bankruptcy you can save a home from selling at auction, and stop a vehicle from being repossessed. Chapter 13 bankruptcy is a good way to get into a court-approved payment plan to catch up on missed mortgage and car loan payments.

We highly recommend calling our experienced Chapter 13 bankruptcy attorney to discuss your situation and get the best advice possible. Call and talk to our attorney today. We give free legal advice and let you know right away if you qualify to file at 818-254-8413.

What You Need to Know Before Filing Bankruptcy

If you are considering bankruptcy, you need to know whether your income is higher than the limit set by the court. Income limits vary according to the size of the household and the place of filing. You also need to disclose all assets and income, as well as all debts and liabilities. Our firm pulls a full credit report to make sure that we include all debts in the filing papers. You will also need to do credit counseling; the credit counseling process is generally very brief and easy to do by phone or via computer.

We highly recommend calling our experienced attorney to discuss your situation and get the best advice possible. Call and talk to our attorney today. We give free legal advice and let you know right away if you qualify to file at 818-254-8413.

When is the Best Time to File for Bankruptcy?

Deciding to file bankruptcy is not an easy decision. People ask us if it will hurt their credit, or make it hard to buy a house or car in the future. We advise people to compare the benefits of bankruptcy against the damage to your credit report from late payments, or missed mortgage payments, or missed vehicle payments. Think about the relief from creditor calls and harassing collectors.

What is the best reason to file for Bankruptcy?

We usually advise our clients to file for Bankruptcy as a strategy to improve credit and get a fresh start. Wiping out mounting debts on credit cards and medical debt is a huge relief for most people who are buried under a mountain of bills.

How does Bankruptcy affect your credit?

woman thinking about bankruptcy while browsing the internet on laptop People worry that it will be too hard to cut their credit cards, but filing is the best way to regain control and rebuild credit. It is true that bankruptcy stays on a credit report for 7 years, but most people see their credit scores go up immediately after filing, and many people are able to buy a house or car within 2-5 years after filing bankruptcy.

What happens after filing for bankruptcy?

After you file bankruptcy, you will go through a process to confirm that you have fully disclosed all debts and liabilities. There is a person assigned by the court called a bankruptcy trustee to make sure that full disclosure has occurred. The bankruptcy trustee is also the person who reviews a payment plan in a Chapter 13 bankruptcy to make sure that it is feasible and that you have the means to pay for your house and car[s].

Goals for filing Chapter 13 Bankruptcy

In most cases, the goal of a Chapter 13 bankruptcy is to save your home from foreclosure and to save vehicles from repossession. The process of paying back missed payments occurs in a repayment plan. That plan must be reviewed by the trustee and ultimately approved & confirmed by the judge in the case.

When Is the Best Time for You to File For Bankruptcy in Los Angeles?

If you are facing crushing debt, foreclosure, wage garnishment, tax liens, creditor lawsuits, or repossession, along with all the stress and worry of collection calls and harassment from creditors, it makes sense to call and talk to a lawyer to discuss your situation in detail right away. At least see if you qualify and ask if it is possible to improve your situation by filing bankruptcy for immediate relief.

We highly recommend calling our experienced attorney to discuss your situation and get the best advice possible. Call and talk to our attorney today. Our firm gives free advice to hundreds of callers every month, and we make it very clear when it is a good idea or a bad idea to file bankruptcy. We let you know right away if you qualify to file when you call 818-254-8413.

What is the means test?

The means test is a test based on your income to see if you qualify to file a case with the bankruptcy court. You may have to pay back some portion of debt to creditors depending on your case and the debt you owe. A repayment plan is usually required in Chapter 13.

Which debts cannot be forgiven when filing for Bankruptcy?

In general, the following debts cannot be forgiven in bankruptcy:

Child support
Alimony
Student loan debt
Back taxes under 3 years old

The bankruptcy court will specify which creditors need to be paid in your case and any debt that needs to be paid in a repayment plan.

If you owe child support, alimony, student loans, or back taxes, you should call and discuss your situation with a lawyer before you decide there is nothing you can do about being buried in debt. In some cases, student loans can be forgiven outside of the bankruptcy process.

How long will Bankruptcy stay on my credit report?

As a general rule, a bankruptcy case will be reported on a credit report for 7 years from the date of filing.

How do I know if I qualify to file for Bankruptcy?

The bankruptcy laws are designed to help individuals facing debt collection actions such as late payments of car loans, mortgage payments, or wage garnishments. Today’s bankruptcy courts help people resolve tax debts & debt problems with the help of a credit counselor.

By filing the correct bankruptcy paperwork with a law firm, bankruptcy protection immediately stops all collection activity. Most lawyers are required to limit their attorney fees as set by the court trustee. Your credit score may actually improve when filing. After you file you will be assigned a case number as you go through bankruptcy proceedings. Filing often boosts your credit score.

What are the negative aspects of filing for Bankruptcy?

The essence of filing for bankruptcy is to get a fresh start, but it can be difficult for some people. You will need to cut your credit cards when you file for bankruptcy. You will need to refrain from major purchases such as a house or car for a matter of 1-2 years, possibly longer. Bankruptcy is a formal process with rigid rules, so not everybody qualifies. Most importantly, filing without a lawyer can be a serious liability that results in the loss of assets! While it is possible to file without a lawyer, we strongly advise against it!

We highly recommend calling an experienced bankruptcy attorney to discuss your situation and get the best advice possible. Call and talk to our attorney today. Our firm gives free advice to hundreds of callers every month, and we make it very clear when it is a good idea or a bad idea to file bankruptcy. We let you know right away if you qualify to file when you call 818-254-8413.

When to Avoid Bankruptcy

woman thinking about bankruptcy

Bankruptcy does not make sense for everyone. Some people have too many assets, high personal savings, or high equity in their homes. All of these factors need to be considered when filing bankruptcy, so we highly recommend calling an experienced attorney to discuss your situation and get the best advice possible.

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