Monthly Archives - May 2012

Bankruptcy is designed to give you a new lease on your financial life. Few people like filing for bankruptcy because of the stigma it leaves on them and their credit. They may avoid it for years, finding themselves in deeper and deeper debt without the income to pay down that debt. Finally, they realize it is time to file personal bankruptcy, but should they go it on their own or contact a Los Angeles bankruptcy attorney.

Of course, people are free to file bankruptcy on their own, but each bankruptcy case is different and sometimes negotiations of terms need to be worked out. Also, there are a host of forms that need to be filled out, as well as lists of assets and expenses that have to be made. You want to make sure you protect your property when filing for bankruptcy so you still have a home and vehicle, as well as other possessions, once the court has made its decision in your case. A Los Angeles bankruptcy lawyer can help you make sure all this paperwork is filed correctly, bettering your chances for a favorable bankruptcy outcome.

There are also different types of bankruptcy one can file and a bankruptcy attorney in Los Angeles can advise you on what type of bankruptcy is best for your own situation. The two most common bankruptcies filed in the United States are Chapter 7 and Chapter 13. These are both designed for individuals and are the simplest types of bankruptcies to file. Simple does not mean a bankruptcy lawyer in Los Angleses is not necessary, as this is a legal matter after all and professional advice usually earns someone the best outcome where the law and courts are involved. Chapter 12, Chapter 9 and Chapter 13 bankruptcies are much less common, while Chapter 11 bankruptcy is reserved for large corporations and usually involves reorganizing debts to eventually pay them off.

A bankruptcy attorney can also help alleviate your mind about the myths and stigmas that are often associated with bankruptcy. Perhaps he or she can make you feel less guilty for getting yourself in this financial situation and take the heavy feeling off your mind and heart. Bankruptcy is a federal program that is designed to help people and not harm people. If debt is keeping you up at night and creditors are contacting you throughout the day, now may be the time to take that step and start over by calling a Los Angeles bankruptcy attorney today.

If you’ve acquired large, unpayable debts, you’ve likely considered filing for bankruptcy. But there are things you need to know and consider before you jump into filing for bankruptcy.

First, you need to ask yourself what type of bankruptcy you should file for. If you’re an individual with personal or household debts, you have the option of filing for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 involves complete liquidation of unprotected assets in order to pay your creditors. Any asset with your name attached is likely fair game, however, some assets can and are protected. For example, most retirement savings accounts and pension plans are protected, such as IRAs and your 401(k). You may even be able to keep your home and vehicle. Consult a Los Angeles bankruptcy law attorney before filing so you can make sure to legally protect whatever you can under the law. The rest of your assets will be sold off and paid out to your creditors. Chapter 13 bankruptcy (the business equivalent is Chapter 11) involves restructuring your debt and finances so you can pay your creditors while still holding onto your assets. Generally you are given a few years to pay off your debts under Chapter 13 protection.

Realize that bankruptcy will not clear all your debts. Most debts will be wiped away, or discharged, if you file for Chapter 7, but some debts and financial obligations will remain. For example, income taxes and most student loans are not forgiven after bankruptcy and you will have to repay them no matter what. You will still have financial obligations such as child support and alimony.

Your credit will be negatively affected. In your credit report, bankruptcy is kept on file for at least 10 years. This will severely affect your ability to apply for loans in the future. However, you can rebuild credit over time.

The last thing you should know before filing for bankruptcy is that yes, you can file for bankruptcy yourself, but it’s highly recommended you consult a bankruptcy lawyer so you can fully understand your rights, responsibilities, and perhaps protect assets you may not have known you could keep if you had filed on your own. The modest cost of a lawyer could save you thousands or more in the long term.