COVID-19 has overwhelmed many Americans with financial problems. You’re not alone. If you want to stop foreclosure, repossession, wage garnishment, or creditor harassment from all your debt problems, bankruptcy protection offers one of the best options for debt relief.

While it is possible to file for bankruptcy without a lawyer (known as a pro se filing), you stand a much better chance at a secure financial future with an experienced bankruptcy attorney. In this article, we’ll discuss the downsides of filing bankruptcy without an attorney as well as the advantages of hiring one when you go bankrupt.

Even if you’re just considering bankruptcy, it’s better to consult with an experienced Upland bankruptcy lawyer. They’ll consider your case along with the relevant bankruptcy laws. Call us now for more bankruptcy information!

3 Risks of Pro Se Bankruptcy Filing

More Expensive Bankruptcy Proceedings

A competent bankruptcy lawyer has the knowledge and skill to navigate through the complicated bankruptcy law efficiently and effectively. When you file your petition, you’ll feel like everyone will be against you, because they’re all looking out for their interest. Your creditors will fight tooth and nail to get you to pay and deny your discharge.

A reliable Upland bankruptcy attorney will fight and negotiate on your behalf regardless of which personal bankruptcy you filed for.

Risk of Bankruptcy Fraud

The bankruptcy petition requires you to provide all assets and sources of income to the judge and the bankruptcy trustee. If you miss any of these, the bankruptcy court may perceive you are performing bankruptcy fraud.

The attorney fees are certainly nothing compared to the jail time you’ll face if you’re convicted of fraud.

Mistakes in Filing

There is a certain way to go through the bankruptcy process. If you miss any small detail, the judge can throw out your case and you’ll miss out on the bankruptcy protection. Not to mention, you may not be able to file bankruptcy for some time after that. If there’s any mistake with listing your assets and liabilities, it could affect your discharge and you could lose your property in the process.

An experienced bankruptcy attorney has handled enough bankruptcies that they can do it in their sleep. Be debt-free with the legal help of an attorney!

The Benefits of Hiring a Bankruptcy Lawyer

Someone Else Fills out the Paperwork

As mentioned, you can get a lawyer to fill out all the bankruptcy forms. Aside from an accurate filing, you’ll also avoid the hassle of filling all those forms, listing your asset liabilities, and acquiring all the necessary documents.

Better Odds to Get Approved

All the statistics show that bankruptcy cases with a lawyer involved saw significantly higher success rates than those who filed pro se. An attorney from a reliable bankruptcy law firm will increase your chances to wipe out your debt.

You’ll Have All Your Bankruptcy Options Laid Out

A lawyer will evaluate your case and know the options available to you. Before declaring bankruptcy, it may be better for you to undergo debt consolidation or debt settlement for the repayment of any debt owed.

If the best option is bankruptcy, then the attorney should tell you which type of bankruptcy from the US bankruptcy code is more apt for your case. Whether it’s a Chapter 7 liquidation or a Chapter 13 reorganization payment plan, your attorney will inform you of your eligibility via the means test, and which is much better for your situation.

Deal with Annoying Collectors

When you file for bankruptcy, the court orders an automatic stay. This stops or prevents any collection efforts and collection calls from any entity: collection agencies, individual debt collectors, or other lawyers. This also prevents you from getting sued for your unpaid debt

Eliminate Dischargeable Debt

A bankruptcy discharge eliminates your liability with the debt. In other words, if your debt gets discharged, you don’t need to repay them after bankruptcy.

Of course, not all debts incurred can be discharged. An attorney can look at all your secured debt and unsecured debt you have to determine which bankruptcy chapter can help you discharge them. Whether it’s tax debt, student loan debt, alimony, credit card debt, or medical debt, or whatever types of debt, your attorney should know how to handle these.

Ask your lawyer which of your debt is exempt and nonexempt from discharge.

What are you waiting for? Call us Now!

If you’re struggling with debt, and find it difficult to pay off, call our Upland Bankruptcy Lawyers for assistance! As we keep saying, an experienced attorney is key when you go bankrupt and want to get out of debt.

The bankruptcy attorneys from the Law Offices of Marc Grossman are here to help any debtor with filing for bankruptcy. Whether you’re facing harassing phone calls, home foreclosure, our lawyers will be there to provide their service and give you a fresh start at a financially free life!

Make that first step to rebuilding your financial security and gaining your financial freedom by calling our Upland bankruptcy law office now!

Everyone wants to have a debt-free life. As we grow older, we all want to experience financial freedom. For bankrupt individuals who are struggling with debt, all they want to do is to pay back all their debts to have a fresh start.

A person who is unable to pay back any outstanding debts to creditors may opt to file bankruptcy as the last resort to solve debt problems. Filing bankruptcy will allow you to reorganize your finances, pursue debt settlement, and pay off a creditor.

Bankruptcy laws vary from state-to-state. In California, there are certain guidelines that you need to follow when declaring bankruptcy. You need to know where to obtain the official bankruptcy forms, how to pass California means test, which agency to take credit counseling sessions from, how to protect your assets, and where to find the nearest local bankruptcy court. A credible Upland bankruptcy attorneycan guide you throughout the bankruptcy process.

The bankruptcy filing requires complete and detailed paperwork. You must download and fill out the free official bankruptcy forms from the website of the United States Courts. You must disclose everything that you own and how much you owe to your creditor. You are expected to voluntarily declare your finances in detail including your bank account records, credit card bills, living expenses, monthly income, assets, liabilities, debts, and all financial records on your bankruptcy form. Once you complete all the requirements, you may file the bankruptcy case in the local bankruptcy court in California and pay the processing fee.

When you file bankruptcy Chapter 7 or 13, you must undergo the “bankruptcy means test”. This test is done to check if you will qualify for the bankruptcy chapter that you will file. If the income of your family falls below the median income of California, it means that you pass the means test. On the other hand, if the income of your family exceeds the median income, you may still be qualified to pass the means test after you deduct the particular expenses.

You are required to undergo credit counseling sessions before you file bankruptcy and debt management courses after bankruptcy. You may take these sessions from one of the accredited credit counseling agencies in California.

Declaring bankruptcy does not mean that you will lose everything that you own; however, not all your assets can be fully protected from liquidation. In California, there are bankruptcy exemption rules that determine the properties and assets that you can protect when you decide to file bankruptcy. On the other hand, some assets cannot be protected and these are categorized under non-exempt property. If you will choose to file Chapter 7 bankruptcy, your appointed bankruptcy trustee will liquidate your nonexempt assets to pay off your debts from your creditor. These rules will also help you calculate the amount that you need to repay to your creditors when you file bankruptcy Chapter 13. In this chapter, you will be allowed to keep your nonexempt assets, but you need to pay back the equal value of your property to your creditors. An Upland bankruptcy lawyer can help you understand these exemption rules, if not the whole bankruptcy procedure.

California has four bankruptcy courts and each location serves a particular geographical area. The state is divided into four districts: eastern, northern, central, and southern districts. The Eastern District covers Bakersfield, Fresno, Modesto, and Sacramento; while the Northern District includes Oakland, San Francisco, San Jose, and Santa Rosa. On the other hand, the Central District comprises Los Angeles, Riverside, Santa Ana, Santa Barbara, and San Fernando Valley; while the Southern District covers San Diego.

You may refer to the website of each office to know more about the address and timings of the court, required fees and local forms, paperwork filing with the court clerk, details about bankruptcy trustees, and 341 meetings of creditors.

Filing for bankruptcy entails hard work and effort. It is a progressive process that will help you solve your financial problems one step at a time. Debt repayment and reorganization of your finances shall be your priority. You must be familiar with the bankruptcy laws implemented in your state to avoid unnecessary errors and penalties in your bankruptcy filing. You have to ensure that all the personal and financial information that you will declare is true and accurate. It is advisable to consult with one of our experienced Upland bankruptcy lawyers at the Law Offices of Marc Grossman to guide you on how to file a bankruptcy systematically. Our competent attorneys will help you become successful as you start over and recover from your financial losses from being bankrupt.

Struggling with debt and financial problems is not easy. Bankruptcy law is a complicated matter that will require legal help from a reliable bankruptcy attorney. Bankruptcy filing helps a debtor pay all or wipe out certain debts. The two common types of bankruptcy are Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). You may choose from these bankruptcy forms depending on the types of debt you owe, whether they are mostly unsecured or secured debt.

Filing bankruptcy will be a great help if you want to repay your debts, prevent creditor harassment, stop foreclosure, and avoid wage garnishment. Once the bankruptcy court has approved your bankruptcy petition, an automatic stay shall be effective immediately.

These are bankruptcy basics that you should know before bankruptcy filing:

1. Family or relatives

The assigned trustee in bankruptcy cases has the right to sue relatives who received a substantial payment from the filer within the year before the bankruptcy petition. That is, even if it was meant to pay back something that is owed legally. What you can do is to have such debt forgiven or discharged, and instead provide a post-petition repayment or pay-off to the relative concerned.

2. Equity in your home

Getting credit against the equity in your property to repay unsecured debts, such as credit card bills and medical bills, could be a big mistake. In a bankruptcy case, unsecured debts will likely be discharged or wiped-out while secured debts, like home equity, will not. If you are considering bankruptcy to get a discharge for your credit card debt, if things go well, you can end up with a greater amount of net cash for your mortgage payment. This will essentially allow you to stop foreclosure and other related legal issues.

3. Homestead Exemption

The state law in California provides for two different exemption systems. The first one is the CCP §704, which is advantageous if you have substantial home equity. The other one is the CCP §703, which comes with a relatively small exemption but enables any unused residual to be “wildcarded.”

4. Bankruptcies and Divorce Proceedings

It is usually best to file bankruptcy before filing for divorce, but note that each case is unique. You would need a spousal waiver from the non-filing partner if you are still married but would want to use the above exemption. In bankruptcy cases, Bear in mind that in almost all bankruptcy cases, it is difficult to wipe out unpaid alimony and child support. Furthermore, you may only file a joint bankruptcy petition if you are still married. Joint petitions generally cost much less when compared to separate bankruptcy filings.

5. Accounts for Retirement

It is also a bad idea to take assets or funds from a retirement account. In general, retirement accounts are protected or covered in bankruptcy. Remember that you put up such an account to secure your financial future. Get legal assistance from a reliable bankruptcy lawyer to make sure you enjoy what you saved for your golden years.

6. Creditors or Debt Collectors

Create a full list of everyone you owe money from, including those who usually do not submit a monthly invoice. Bear in mind that the automatic stay is enforced once the bankruptcy petition is filed in court.  It means that all creditors must suspend all collection in the absence of a satisfactory request to do so.

7. Fraud

A petition in bankruptcy is signed legally, under the possible penalty of perjury. It shall be subject to careful investigation and is considered as part of public record. You must strictly follow all relevant bankruptcy rules and not take actions that may seem to be dishonest.

8. Non-Dischargeable Debts

Student loan debt, child support, and the certain tax debt that are insured are forms of non-dischargeable debt. Being aware of what you may or may not strike off your list of debts in a bankruptcy proceeding would make it easier to determine whether or not it is best to declare bankruptcy.

9. Right Timing

Timing is crucial. If you are facing debt problems, you might be making too much now to pass the bankruptcy means test, but that won’t be the case a few months from now. You may have a tax debt that can’t be discharged right now, but could be discharged tomorrow.

It is important to consult with an experienced bankruptcy attorney to help you on how to file, understand the bankruptcy proceedings, and prepare the requirements necessary when filing for bankruptcy. Contact us at the Law Offices of Marc Grossman for a free consultation: 855-5664-911

It is a legal process in relation to persons or businesses who cannot pay their remaining debts. Bankruptcy laws are designed to help debtors unable to pay off their outstanding balances and help the creditors get relief from assets the debtor has no need for. There are different types of bankruptcy which we will see below.

Chapter 7 Bankruptcy

It allows you to get a “fresh start” as it erases most of your debts. When you file for a Chapter 7 bankruptcy, you will receive a “bankruptcy discharge order” from the United States bankruptcy court. Creditors or lenders can never again attempt to collect a debt that’s been discharged. It erases unsecured debts which are debts not connected to any specific piece of property. It may include credit card debts, medical bills, personal loans, older tax debts, old utility bills, deficiency on a car loan after possession, and other unsecured debts.

However, not all debts can be erased with Chapter 7 bankruptcy, such debts are known as non-dischargeable debts. Some common non-dischargeable debts are recent tax debts, child support or alimony payments, and, in general, student loans. You have to pay back these types of debts after bankruptcy. Secured debt which is backed by the specific property is not erased in bankruptcy if you keep the property securing the debt. Some common examples of secured debts are mortgage loans backed by real property and car loans secured by the vehicle.

How to apply for a Chapter 7 Bankruptcy

To qualify for a Chapter 7 bankruptcy, you need to pass the “means test”. It is a review of your regular income and allowable expenses that look back over the past 6 months. It compares your income to the median household income of a household of the same size in the state. If their income is lower than California’s median income, they automatically qualify to file for bankruptcy.

After filing for bankruptcy, a trustee will collect all of your assets and liquidate every asset as long as it is not exempted. After liquidating assets, you will be paid off any of the exempted amounts and the proceeds of the liquidation will be distributed to the creditors.

An automatic stay will take effect as soon as you filed for a Chapter 7 bankruptcy. It means all creditors will stop actions against you. Any wage garnishment that is happening or about to happen will be stopped. It also prevents utility shut off and helps recover a driver’s license that was suspended due to unpaid debts. The automatic stay also temporarily stops foreclosure, repossession, or eviction.

Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, the filer is required to make monthly payments to their bankruptcy trustees to pay portions of what they owe through their repayment plan. The bankruptcy trustee functions as a plan administrator, who receives the filer’s monthly payment and distributes the funds according to the plan of reorganization. The plan payment has to be high enough so that all unsecured creditors get as least as much if the filer has significant non-exempt property. This is called the best interest test.

How to apply for a Chapter 13 Bankruptcy

The forms for filing Chapter 13 bankruptcy are almost the same for a Chapter 7 bankruptcy, though some forms, including the means test, are a bit different. The filer doesn’t need to file a statement of intentions at the bankruptcy court as their intentions with respect to their secured debts are outlined in their Chapter 13 plan. The automatic stay takes effect as soon as they filed for bankruptcy at the bankruptcy court providing immediate debt relief.

Since Chapter 13 bankruptcy offers reorganization, wage earners with regular monthly income high enough to pay their monthly living expenses and make a monthly plan payment can take advantage of it. You can modify your car loans as long as you meet the legal requirements for it and the creditor will be bound with the payment plan. It also gives you the opportunity to catch up with your mortgage or HOA dues over the term of three to five-year plan and fight off a foreclosure proceeding. Filers can also pay off non-dischargeable priority debts in full but their student loans are not considered a priority debt and you may end up owing more student loans than what you originally owed before filing for bankruptcy. Furthermore, as long as you have enough to cover the value of your non-exempt property, you are able to keep it.

Are you considering filing for bankruptcy? Better consult a bankruptcy attorney.

While filing for bankruptcy can be done alone, availing the services of an experienced lawyer will be highly beneficial for you. We, at the Law Offices of Marc Grossman, are well versed in bankruptcy cases. If you have a question about anything from the process of filing for bankruptcy to potential liabilities, our bankruptcy attorneys can answer such questions for you. Call us now and get free legal advice.