Los Angeles Bankruptcy Lawyer
Bankruptcy should be, not a moral or emotional decision, but rather a financial decision, based on such factors as the amount of your debt, your income, and your cash flow. If you have insufficient disposable income at the end of each month to meaningfully pay down your debt, bankruptcy should be seriously considered. Indeed, if it is legally available and appears the most effective means to get away from that massive black hole that is your debt, which is forever devouring your precious time and energy, sucking the life out of your life, then you may have a moral duty, to yourself, to file for bankruptcy.
Many of history’s most financially successful people filed for bankruptcy before they finally succeeded. (You might not become wealthy after bankruptcy. But if bankruptcy is justified in order to get rich, surely it is justified in order simply to have a decent life, which is the minimum that anyone deserves.) The Los Angeles bankruptcy lawyers of 1-888-DEBT-END are a “one-stop shop” for persons facing overwhelming debt. Unlike many of our competitors, our Los Angeles bankruptcy lawyers represent our individual and business clients in numerous chapters of the Bankruptcy Code, while also handling out-of-court debt negotiation, mortgage restructuring, and foreclosure and eviction defense. If you need relief, our Los Angeles bankruptcy lawyers can provide you with options based on our decades of legal and financial experience and proven record of success in helping consumers get out from under crushing debt.
A Comprehensive Debt Relief Practice
The Los Angeles bankruptcy lawyers of 1-888-DEBT-END help individuals and companies in California file for bankruptcy relief under the Bankruptcy Code (as well as providing other forms of relief). Our Los Angeles bankruptcy lawyers are different. Many other bankruptcy law firms will pass you off to a paralegal, a secretary, or an inexperienced, junior lawyer. Worse, at many firms, that description fits everyone in the office. Such a firm might steer every client into a Chapter 7 bankruptcy, either because it is all they know to do, or, if they’re unethical, just because it involves less time and effort for them, but which (Chapter 7) is not always the best remedy. At 1-888-DEBT-END, however, you will meet with, and your case will be handled by, a highly experienced and ethical Los Angeles bankruptcy lawyer. Since our Los Angeles bankruptcy lawyers handle various types of bankruptcies, and are also experienced and knowledgeable about many non-bankruptcy ways to solve debt problems, our highly qualified Los Angeles bankruptcy lawyers will work with you to find and implement the best solution for you, whether it involves a non-bankruptcy procedure, or, if bankruptcy, whichever form of personal or business bankruptcy best suits your needs:
Los Angeles Chapter 7 Bankruptcy
Chapter 7 is a court-supervised process wherein a debtor is able to liquidate his unsecured debt. This means that, through a Chapter 7 discharge, the obligation on unsecured debt is completely wiped out (“discharged”). Unsecured debt is debt that has no collateral securing its repayment. The most common examples of unsecured debt are credit cards, medical bills, and repossession deficiencies. Chapter 7 bankruptcy is a good option when you have too much debt or too many creditors for debt settlement, and your assets can be protected.
Even if Chapter 7 bankruptcy is right for you, you still must qualify for it. This is because in 2005, Congress overhauled the bankruptcy laws to make it harder for high-income persons to file for Chapter 7 bankruptcy. The new set of laws includes a requirement that debtors “qualify” for Chapter 7 bankruptcy.
There are two ways in which you can qualify for Chapter 7 bankruptcy:
First, if you can show the court that your household income does not exceed the median income for a household of your size for the state in which you reside, you automatically qualify for Chapter 7. To determine your income, the court looks at your average monthly gross income over the 6 months leading up to when you filed your case.
Second, if your income exceeds that median income figure, you may still qualify if you can pass the Means Test. In the Means Test, your gross monthly income is adjusted by removing certain allowed deductions for living expenses, thus yielding your monthly disposable income. If your monthly disposable income is negligible, then you will be deemed to have no funds available to repay your creditors, and you will qualify for Chapter 7.
If, however, your monthly disposable income is significant, then you might not qualify for Chapter 7, because you will be deemed to be able to afford to pay these excess funds to your creditors, and Chapter 7 does not allow for such repayments. Instead, you may qualify for Chapter 13 bankruptcy:
Los Angeles Chapter 13 Bankruptcy
Unlike a Chapter 7 bankruptcy, which wipes out your debt, a Chapter 13 bankruptcy reorganizes your debt, in the form of a payment plan, whereby your monthly disposable income goes to your creditors. In order for our Los Angeles bankruptcy lawyers to advise you whether or not Chapter 13 bankruptcy would be the best remedy for you, we need to discuss with you such factors as your income, the kind and amount of your debt, and your goals in bankruptcy.
Another difference between Chapter 7 and Chapter 13 is length. Chapter 7 cases typically take less than six months; whereas, Chapter 13 cases last from three to five years, the period during which you make monthly payments to your creditors. Our Los Angeles bankruptcy lawyers are expert in budgeting and can structure a repayment plan that will work for all concerned (but especially for you).
Once our top Los Angeles bankruptcy lawyers create a good repayment plan, the next step is to submit the plan to the bankruptcy court and the Chapter 13 Trustee. We know what the court and the Trustee are looking for, and we are very successful in getting these entities to accept our plans.
It is of course better be get the bankruptcy over with as soon as possible. And yet there are reasons why Chapter 13 may be a better solution than Chapter 7, some of which are as follows.
First, certain kinds of debts, like mortgage arrearages and taxes, are not dischargeable in Chapter 7, but which you do not have the money to pay. Chapter 13 bankruptcy allows you to make a manageable payment plan to get caught up on such debts.
Second, only in a Chapter 13 bankruptcy can you strip off a second mortgage.
Third, unlike Chapter 7, Chapter 13 has no means (income) test. However much money you make, all that is required for Chapter 13 is that you create a repayment budget that the court deems fair to your creditors. But the court also considers what is realistic for you, and so the plan could entail your repaying only a small portion of your debt.
Finally, our Los Angeles bankruptcy lawyers determine the extent to which your assets can be protected. An advantage of Chapter 13 is that it enables you to keep valuable assets (such as a home, car, savings account) that could be lost in a Chapter 7 (in Chapter 13, none of your assets are sold off).
To discuss your situation, or to schedule an appointment, please contact us:
1-888-DEBT-END
Law Offices of Richard J. Eisner
Southern California
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