Are you stressed and unable to pay your bills?

About Chapter 7 Bankruptcy

Bankruptcy Attorney Los Angeles

It isn’t uncommon to file for bankruptcy and with recent economic events like the pandemic and job losses, many homeowners have not been able to pay their mortgages. Although our mission is to avoid bankruptcy and help you through avoiding foreclosure, at times we are left with no choice. Our team of attorneys in Los Angeles specializes in Chapter 7 Bankruptcy and we welcome the opportunity to help you. So what is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is the most common type of Bankruptcy and is often referred to as a “Liquidation Bankruptcy.” You may want to consider Chapter 7 if you have little property except for the basic necessities like furniture and clothing and/or you have little or no money left after paying basic expenses each month – or you’re not even meeting basic expenses. Your stress levels are so high that we want to guide you through the process and options to do things the right way in the state of California.

Advantages of Chapter 7 Bankruptcy

Some of the advantages of a Chapter 7 Bankruptcy are that almost all unsecured debts can be discharged (completely eliminated). The process of a Chapter 7 Bankruptcy moves quickly – you may receive your discharge in just a few months and creditors can’t contact you while the automatic stay is in effect – or after debts are discharged. We will work on your behalf so your stress and anxiety levels can go back to focusing on your family.

Find out how to file for Chapter 7 Bankruptcy with our team of attorneys. An individual who qualifies under the ‘means test’ and completed a required pre-filing session with a credit counselor may file for Chapter 7 bankruptcy protection may file for a Chapter 7 Bankruptcy. To determine if a Chapter 7 Bankruptcy is correct for you, contact Sternberg Law Group today for a free consultation. Our team of attorneys albeit located in Los Angeles can service all inquiries from anywhere in the state of California. We welcome the opportunity to provide you guidance during a difficult time.

Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy can be a good way to save your home from foreclosure.To learn more about saving your home through Chapter 13 bankruptcy, please contact our office today.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is sometimes referred to as a “repayment” plan because debtors pay some or all of their unsecured debts (interest free) over a 3-5 year plan. Your payment is based on what you can afford to pay (income minus expenses). If you can afford to pay $200.00 a month for 36 months, but your debt totals $50,000.00, the remaining unsecured debt of $42,800.00 is eliminated upon discharge- tax free. Fantastic debt solution right? We think so.

Our client’s only regret comes from waiting too long to file bankruptcy. Filing a chapter 13 bankruptcy allows you to move on with life with a payment you can afford. Now that is a practical debt solution.

Chapter 13 Bankruptcy Process:

Step 1

FREE NO OBLIGATION CONSULTATION

The consult can be done in person, by phone or FaceTime/Skype. If Chapter 13 bankruptcy makes sense for you, we will sign you up during this consultation. This takes only minutes.

We will then help you with the worksheets (we never send you home with a pile of forms you do not understand) and we pull your credit report.

Step 2

REVIEW AND SIGN APPOINTMENT

At your review and sign appointment, you will meet with our staff and your bankruptcy attorney to make sure the information on the petition and schedules is complete and accurate. You sign and we file your Chapter 13 bankruptcy within a day or two of this meeting.

Upon filing, creditor collection activity must stop-by law.

Step 3

341 MEETING OF CREDITORS

Your Sternberg Law Group lawyer is with you as a bankruptcy trustee asks that you verify the information on the bankruptcy schedules is true, correct, and complete. The questioning typically lasts 5-10 minutes and typically creditors do not appear.

Step 4

CONFIRMATION HEARING

The repayment plan that you file is a proposed plan. During the confirmation hearing the court will approve or deny the plan. Attendance at this hearing is NOT required unless your lawyer tells you it is, which is very rare.

Once the plan is confirmed, it is a court order and all your creditors must comply with it.

Step 5

DISCHARGE ORDER

Upon completion of your chapter 13 payments, any unpaid debt will be eliminated, tax free. It is a new beginning for you and your family.

Who can file Chapter 13 Bankruptcy?

There are a few specific eligibility requirements to be able to file a chapter 13 bankruptcy. Generally, a debtor must have the ability to make a payment on a Chapter 13 bankruptcy plan. Also, your debt may not exceed:

  • $1,149,425 in secured debt
  • $383,175 in unsecured debt

ADVANTAGES TO FILING A CHAPTER 13 BANKRUPTCY

Advantages

  • After your repayment period ends, any unpaid debt is eliminated, tax free
  • Creditors must comply and harassment will stop upon filing
  • Attorney fees will be paid through the plan
  • You lose no assets – exempt or non exempt
  • Protects co-signers
  • Helps prevent foreclosure and repossessions

Disadvantages

  • Your plan, and therefore your debt, last 3-5 years.
  • You don’t receive a discharge for 3-5 years.

Types of Debt:

Unsecured Debt:

  • Department Store Cards
  • Credit Cards
  • Utility Bills
  • Medical Bills
  • Some Personal Loans
  • Payday Loans

Secured Debt:This type of debt acts as a security for the debt, meaning it can be seized and sold if you don’t make the payments.

  • Mortgage
  • Auto Loans

Priority Debt:

  • Tax obligations
  • Alimony
  • Child Support

Please Note: All information above represents a very brief overview of the Chapter 13 Bankruptcy process. Since each case is unique, we understand that you may have specific questions about Chapter 13 Bankruptcy. For clear and practical advice from one of our experienced Bankruptcy attorneys, please call Sternberg Law Group.