We understand that the Bankruptcy process can be stressful but we are here to help. No matter what your situation, we want you to know it is going to be OK.
What kind of bankruptcy do I qualify for?
The kind of bankruptcy you can file depends entirely on your income. Under the Means Test, you automatically qualify for Chapter 7 bankruptcy protection if you make below the median income for your household size. For example, a three person household with income of less than $69,000 would automatically qualify.
What types of bankruptcy are available?
For individuals there are two types: Chapter 7 and Chapter 13. Chapter 7 is called a “Liquidation” bankruptcy. This means you do not pay your debts, they are discharged. Usually, all of our client’s property and possessions will be completely protected by law and they can keep everything, but we will analyze this to protect you before we recommend a Chapter 7 bankruptcy.
Chapter 13 is called a “Wage Earner” plan. In a Chapter 13 a debtor will make monthly payments to the bankruptcy court for up to 5 years in an attempt to pay off some or all of their debts.
What can I keep in a Chapter 7?
In California, there are many exemptions under the law and most of our clients get to keep all of their property and possessions. For secured property like a car or a home, you may need to enter into a new contract with your lender called a reaffirmation agreement. We recommend this ONLY if it is required by the lender AND if you can actually afford it.
Should I file Bankruptcy?
Bankruptcy is a serious step and requires careful consideration. During our consultation, we will discuss whether it would be better to avoid bankruptcy and how you may be able to help you do that. If you decide to move forward, bankruptcy will stop collection activity and in some cases even foreclosures. The most important benefit of bankruptcy is that it provides a fresh start. After filing, you can start building your credit from scratch.
After 2 years, your credit may be even better than it was before bankruptcy.
What will this cost me?
We offer Chapter 7 bankruptcy services starting at $750. The Court also requires a $299 filing fee unless you qualify for a fee waiver. Fees for Chapter 13 services depend on your individual circumstance.
Ready to get started? Call us at (888) 922-2367.