Filing Personal Bankruptcy in Los Angeles
Posted By Price Law Group
Are you drowning in personal debt unable to pay your medical bills? Do you refuse to answer your phone afraid it might be a creditor calling? If you live in Los Angeles and you are considering bankruptcy a Los Angeles bankruptcy lawyer can answer your questions about bankruptcy law and determine if you can file Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Filing bankruptcy in Los Angeles is a very difficult decision and should not be made without considering your other financial options, but if you find yourself unable to pay your mortgage, overwhelmed with high credit card bills or facing a home foreclosure, filing bankruptcy may be the best option for a fresh financial start.
Filing Chapter 7 Bankruptcy in Los Angeles
Filing Chapter 7 bankruptcy can be faster and less expensive than filing Chapter 13 bankruptcy. Chapter 7 bankruptcy can discharge most unsecured debt within four to six months after filing the bankruptcy petition. The first step in the filing Chapter 7 bankruptcy in Los Angeles is to contact a Los Angeles bankruptcy attorney who will file a detailed bankruptcy petition in the appropriate bankruptcy court. The bankruptcy petition will list all of the debtor’s assets, property, debts and other financial information. After the petition is filed a meeting with the creditors will be scheduled (341 Meeting). A trustee will be assigned to sell all non-exempt assets and will use the proceeds from the sale to repay the creditors. If the petition is approved and the creditors do not object to it all qualifying debts will be discharged within four to six months.
Filing Chapter 13 Bankruptcy in Los Angeles
Filing Chapter 13 bankruptcy in Los Angeles will not liquidate the debtor’s assets, but instead will allow the debtor to repay their debt with a bankruptcy repayment plan. The repayment schedule will last from three to five years. After all the requirements of the plan have been met the debts will be discharged.
Filing Chapter 13 bankruptcy in Los Angeles allows debtor’s to maintain their property and stop home foreclosures. Not everyone will qualify for Chapter 13 bankruptcy. Debtors who are considering Chapter 13 bankruptcy must have a steady source of income to meet the terms of the bankruptcy repayment schedule. Debtors also can not have unsecured debts exceeding $269,250 or secured debts exceeding $807,750.
Personal Debts Not Eliminated By Filing Personal Bankruptcy
Federal bankruptcy laws outline the types of debt that will not be discharged by filing bankruptcy and the non-qualifying debts are the same for all of the states. Los Angeles residents considering filing bankruptcy should contact a Los Angeles bankruptcy attorney for more information about non-qualifying debt. The following debts will not be discharged by filing bankruptcy in Los Angeles:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Bakersfield
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy
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