Filing Personal Bankruptcy in Long Beach

Thousands of California residents have been negatively affected by the current economic climate and need financial relief. Are you facing a home foreclosure? Do you avoid creditor calls? Maybe you have lost your job. You are not alone. No one wants to file bankruptcy, and it should be one of the last options considered, but if you are desperate and need help, a Long Beach bankruptcy lawyer can help discuss your financial options for getting a fresh financial start.

Filing Chapter 7 bankruptcy in Long Beach may allow you to discharge a portion or all of your personal debt. Filing Chapter 13 bankruptcy in Long Beach may allow you to develop a more favorable three to five year repayment schedule to repay your debts and stop a home foreclosure, property repossession or wage garnishments. Filing bankruptcy is a serious financial decision which should not be considered without first contacting a Long Beach bankruptcy attorney.

Filing Chapter 7 Bankruptcy in Long Beach

Filing Chapter 7 bankruptcy in Long Beach can be the least expensive, most common and easiest bankruptcy to use. Under Chapter 7 bankruptcy the filer’s assets will be sold and the money from the sale will be used to repay creditors.

A Long Beach bankruptcy lawyer files the bankruptcy petition in the appropriate bankruptcy court. The bankruptcy petition lists all of the exempt and non-exempt assets the filer owns, their creditor’s names and the amount of debt they owe. The bankruptcy court will review the petition to ensure it meets all the bankruptcy codes, if it does a 341 creditor meeting is scheduled. A trustee will be assigned to sell the filer’s non-exempt assets. After the assets are sold and the proceeds are distributed the remaining qualifying debt is discharged. Most Chapter 7 bankruptcy cases can be completed within four to six months from the date the bankruptcy petition is filed.

Filing Chapter 13 Bankruptcy in Long Beach

Filing Chapter 13 bankruptcy in Long Beach differs from filing Chapter 7 bankruptcy because the filer’s assets are not sold or “liquated”, but rather the filer is allowed to “reorganize” their debt with a new three to five year repayment schedule. Many repayment schedules allow for more favorable terms for repayment.

Filing Chapter 13 bankruptcy in Long Beach may not only stop home foreclosure, but may also help the filer avoid wage garnishments and other property repossession actions. Only individuals with a steady income are allowed to file Chapter 13 bankruptcy. Filers also can not have secured debt exceeding $807,750 or unsecured debt exceeding $269,250.

Personal Debts Not Eliminated By Filing Personal Bankruptcy

Filing Chapter 13 bankruptcy or filing Chapter 7 bankruptcy does not eliminate all personal debt. Many types of debt are not discharged by filing bankruptcy. Non-dischargeable debt is outlined under federal bankruptcy laws and is the same for every state. Filing bankruptcy in Long Beach, California, does not eliminate the following debts:

• Most back taxes
• Child support and alimony payments
• Certain student loans
• Purchases of luxury items within ninety days of filing personal bankruptcy in Long Beach
• 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