Pacoima Bankruptcy Lawyers
Are you currently facing financial challenges with overwhelming debt, experiencing creditor harassment, or dealing with the threat of foreclosure or repossession? If you find yourself affirming any of these situations, bankruptcy might be a consideration for you. At RJB Law Offices, we empathize with the difficulties you're going through. Our dedicated team of bankruptcy lawyers in Pacoima is committed to assisting you during this challenging time, providing guidance to help you navigate the process, and supporting you in making informed decisions for your future and your family.
Call (888) 256-8581 or contact us online to schedule a consultation with our team today.
What is Bankruptcy?
Bankruptcy is a legal recourse designed to assist individuals and businesses in managing overwhelming debt. It serves as a mechanism for eliminating or repaying debts, offering a fresh start to those unable to meet their financial obligations. In California, the process can address challenges like foreclosure, repossession, and creditor actions, providing relief and a chance for a more stable future.
Different Types of Bankruptcy: Chapter 7 and Chapter 13
Chapter 7, known as "liquidation" bankruptcy, involves the potential sale of nonexempt property to repay creditors. However, generous property exemptions in California often allow individuals to retain all their property, leading to a "no-asset" bankruptcy. Typically completed in three to six months, Chapter 7 discharges eligible debts, though certain obligations like student loans and alimony persist.
Chapter 13, the "reorganization" bankruptcy, mandates a three- to five-year debt repayment plan based on income, expenses, and debt type. Following this period, any remaining eligible debts are discharged. Chapter 13 is beneficial for those facing foreclosure or repossession, activating an automatic stay that halts all creditor collection actions. It also provides an opportunity to catch up on overdue mortgage or car payments.
Notably, Chapter 13 serves individuals who don't qualify for Chapter 7, where the means test assesses income against the state median. If above the median, eligibility may still be possible if disposable income is insufficient to repay debts. If Chapter 7 isn't an option, filing for Chapter 13 remains a viable alternative.
Navigating the Bankruptcy Process
The bankruptcy journey commences with filing a detailed petition with the bankruptcy court, outlining income, expenses, debts, and property information. Financial transactions over the past two years, including income, property transfers, and creditor payments, must also be disclosed. Once filed, an automatic stay takes effect, ceasing all creditor collection actions, including foreclosure and repossession.
If creditors persist in contacting you, referring them to your bankruptcy lawyer is advised. Seeking professional guidance is crucial to successfully navigate the complexities of bankruptcy proceedings.
Call (888) 256-8581 or contact us online to schedule a consultation with a Pacoima bankruptcy lawyer.
The Benefits of Bankruptcy
Bankruptcy offers various advantages, including the discharge of eligible debts, the automatic stay preventing collection actions, and the ability to retain your home and car. It provides a chance to catch up on missed mortgage and car payments and serves as a platform for rebuilding credit.
Exploring Bankruptcy Alternatives
When confronted with financial difficulties, exploring bankruptcy alternatives becomes crucial. Two viable options are Tax Resolution and Debt Settlement. Tax resolution addresses IRS tax debt problems through structured installment agreements or offers in compromise, providing a pathway to debt relief and forgiveness. On the other hand, debt settlement involves negotiating a lump sum payment, often a fraction of the original debt, to satisfy creditors. This approach is particularly useful when full payments are challenging, and creditors may accept the settlement to avoid lengthy legal proceedings. Understanding these alternatives enables individuals to make informed decisions tailored to their financial circumstances.
Contact Our Pacoima Bankruptcy Lawyers
RJB Law Offices understands the challenges that come with financial difficulties. Our Pacoima bankruptcy attorneys are committed to providing compassionate and effective legal representation, guiding you toward a brighter financial future.
If you are considering bankruptcy or need assistance with debt relief in Pacoima, contact RJB Law Offices today. Schedule a consultation to discuss your unique situation and take the first step toward achieving financial stability.
Call (888) 256-8581 or contact us online to schedule a consultation with a bankruptcy lawyer near you.