Millions of Americans have found themselves unable to pay their medical
bills, mortgage and high credit card bills. Filing bankruptcy may be one
option for Encino residents who have exhausted all other options to regain
their financial footing. If you are considering filing bankruptcy in Encino,
an Encino bankruptcy attorney can help.
Filing bankruptcy is an important decision. Many people want to know the
“right time” to file bankruptcy, but unfortunately there may
not be a right answer. Filing
Chapter 7 bankruptcy in Encino eliminates debt by liquidating a debtor’s assets. Filing
Chapter 13 bankruptcy allows Encino residents to restructure their debt payments. If you have
suffered through a divorce, unexpected death, high medical bills or exorbitant
credit card debt and need help, contact an Encino bankruptcy attorney
for information about current bankruptcy laws.
Filing Chapter 7 Bankruptcy in Encino
Filing Chapter 7 bankruptcy in Encino, California, will liquidate the debtor’s
non-exempt assets to repay their creditors. If the debtor does not have
property to sell, the bankruptcy case is considered a no-asset case. Chapter
7 bankruptcy can be a cheap and inexpensive way to get a fresh financial
start. Residents who file Chapter 7 bankruptcy in Encino may have their
debt discharges within four to six months after the bankruptcy petition is filed.
The first step in Chapter 7 bankruptcy is to contact an Encino bankruptcy
attorney who will file the bankruptcy petition in the appropriate bankruptcy
court. The debtor must provide their financial information including a
list of their property, debts, income, and non-exempt and exempt assets.
A bankruptcy trustee will review the bankruptcy petition, meet with the
creditors (at the 341 creditor’s meeting) and sell all non-exempt
assets to repay creditors.
Filing Chapter 13 Bankruptcy in Encino
Filing Chapter 13 bankruptcy in Encino will not automatically allow for
a discharge of debt by liquidating the debtor’s assets, instead,
Chapter 13 bankruptcy allows the debtor to create a three to five year
bankruptcy repayment schedule (often with more favorable repayment terms).
Filing Chapter 13 bankruptcy in Encino can be better for many debtors
because they will be able to keep their assets.
Debtors can only file for Chapter 13 bankruptcy if they have a steady income
source to make payments for their repayment plan. Debtors also may not
have unsecured debt above $269,250 or secured debts above $807,750.
Personal Debts Not Eliminated By Filing Personal Bankruptcy
Filing bankruptcy in Encino does not eliminate all personal debt. The types
of debt not eliminated by filing personal bankruptcy are outlined under
federal bankruptcy laws and will be the same for all of the states. The
following personal debt will remain after filing bankruptcy and creditors
may continue to their collection actions even after bankruptcy has been filed:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Encino
- 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