Posts Tagged ‘attorney’
February 13, 2011
Hiring a Los Angeles Bankruptcy Attorney
Are you are considering filing for bankruptcy and are overwhelmed with financial stress caused by creditors , or, your bills are piling up and making you lose sleep over what your options are? California leads the nation in the amount of bankruptcies filed each year according to the AACER (Automated Access to Court Electronic Records.) Hiring a professional who has the tools to assist you in your rough times with highly trained individuals and compassion for what you are going through is an important step in the recovering process. Our team at the Law Offices of Alon Darvish can help you with making the right choices and steer you back into the path of financial stability. For some, the embarrassment of facing such challenges will result in the decision to go about doing it alone which is a mistake in the long run as such a big decision plays an important part in your future. The chances of making errors during the bankruptcy process can mean you not being awarded the discharge of your debts and can become another hassle in your life. Here are some examples of why hiring a qualified individual can make the process stress free and beneficial.
Knowledge of the Law
California attorneys are knowledgeable about the California Bankruptcy process and will know the laws that need to be applied for each case. New Laws under the Bankruptcy Abuse Prevention & Consumer Prevention Act make it more difficult for individuals to file for bankruptcy by themselves. Bankruptcy laws vary depending on the state they reside in, therefore having a qualified bankruptcy attorney helps the process along. One of the advantages of having an attorney is that they understand your situation and can advise you on what is going on so you are not left in the dark during your troubling times.
Paperwork
The process to file for bankruptcy in Los Angeles is time consuming, as the amount of paperwork that needs to be completed is significant. Making sure the bankruptcy petition has a the correct information is crucial to your bankruptcy as it is the foundation of what needs to be done.
The process can be cumbersome. You may have a mountain of paperwork, which you will need in order to file bankruptcy with the court. Gathering these documents can take time and preparing the petition with incorrect information can cost you more money. A Los Angeles bankruptcy attorney can assist you with gathering all the proper information needed and they will help you file them accordingly.
Representation
Once you have hired a bankruptcy attorney, they will represent you during your case. This includes letters sent out to creditors that you have and they will help eliminate the phone calls and collections of property as they are required to contact the attorney, not you. Your attorney will accompany you to your creditors meeting which is a vital part of the process to file Chapter 7 bankruptcy . This meeting will determine which property can be taken and sold to repay the debts. Usually, bankruptcy trustee’s do not take property from the debtor because they are entitled to keep certain assets. However, in order to determine whether your assets are safe (i.e., your home, car, cash in the bank, etc…), you should speak to a knowledgeable bankruptcy attorney. The trustee will be asking questions which can be intimidating and with an attorney present, they can help you answer them so you avoid costly mistakes in the long run.
Attorneys are legally bound by a code of ethics when representing you and will work diligently on your behalf to either negotiate your debts or advise you whether a bankruptcy is the right choice for your circumstances. Our firm will not make empty promises as to what we can do for you. Rather, we will carefully discuss your best options and purse the objective of getting your debts under control, either through bankruptcy or other debt handling means.
Tags: attorney, Bankruptcy, Bankruptcy Attorney, Bankruptcy Attorney In Los Angeles, bankruptcy attorneys, bankruptcy lawyers, bankruptcy petition, Chapter 13, Chapter 7, Creditors Meeting, discharge, file for bankruptcy, Lein Stripping, los angeles bankruptcy attorney, los angeles bankruptcy lawyer, petition
Posted in California Attorney, Chapter 7 Bankruptcy, Chapter 7 Bankruptcy / Chapter 13 Bankruptcy, Code of Ethics, Law, Los Angeles Bankruptcy Attorney and Bankruptcy Lawyer | No Comments »
February 1, 2011
Bankruptcy Discharge!
A bankruptcy is defined as the legal process in which a person or firm declares inability to pay debts. Any available assets are liquidated and the proceeds are distributed to creditors. Upon a court declaration of bankruptcy, a person surrenders assets to a court-appointed trustee, and is relieved from the payment of previous debts. A bankruptcy discharge is an order given by the bankruptcy judge, at the conclusion of all legal steps in processing a bankrupt person’s assets and debts, which forgives those remaining debts which cannot be paid, with certain exceptions. Debts for fraudulent or illegal actions, alimony and child support and taxes are not dischargeable and remain owed.
The fair treatment of creditors and public policy both work to limit the extent of the discharge for debtors. The bankruptcy code was not designed so that debtors can take advantage of creditors for their own profit, and so various provisions of the bankruptcy code limit the debts that are discharged if they were incurred dishonestly or by fraud. This includes debts that were incurred on credit cards where the debtor entered false information on the credit application and also includes major debts for luxury goods that were incurred shortly before filing for bankruptcy. However, a creditor must challenge the discharge of these debts, and the court must notify the debtor and conduct a hearing; otherwise, the debts will be discharged.
There are debts that are discharged and others that are not allowed to be discharged. Most unsecured debts acquired by the debtor in good faith and if they cannot pay them off are allowed to be discharged under a regular Chapter 7 bankruptcy . Debts that are never discharged in a bankruptcy can include:
- Recent taxes
- Trust fund taxes
- Child or family support
- Criminal fine or restitution
- Accident claims involving intoxication
- Debts not scheduled
- Penalties payable to the government other than tax penalties
- Student loans
- Debts listed in prior bankruptcy where debtor was denied a discharge
- Taxes for years where return unfiled or filed for less than 2 years
Some of the listed debt may be discharged if the debtor can prove hardship to pay them back within a reasonable time frame.
Secured debt that is discharged is a little more difficult as the debtor might want to keep that asset such as a car, or home. The individual debtor can surrender the secured property, pay for it in a lump sum, or sign a Reaffirmation Agreement to keep it. In most cases, only prepetition debts are discharged. In an involuntary Chapter 7 case that is brought by a creditor rather than the debtor, discharged debts also includes debts incurred between when the case was filed and when the actual bankruptcy case commences, if the Chapter 7 bankruptcy is approved by the court.
An automatic stay is put once a bankruptcy process begins, this prohibits the collection of debts by the creditors. If the debtor receives the discharge of the debts, then the injunction succeeds the automatic stay and enjoins any further actions to collect the debts from the debtor. If a creditor violates the injunction and tries to collect the debts, then the courts may issue a civil contempt order. Generally, waivers of certain discharged debts are not enforceable except in specific circumstances. Waivers must be in writing and approved by the court. A reaffirmation agreement, for instance, must satisfy these and other requirements to be enforceable. A debtor may volunteer to pay a debt, but the creditor cannot harass or intimidate the debtor into doing so.
A Chapter 7 discharge is granted to an individual debtor if there have been no challenges, which is usually the case. Creditors have 60 days after the creditors meeting to challenge the discharge of its debt. If there are no challenges and if the debtor did not sign an reaffirmation agreement, then after about 3 months after the creditors meeting, the court sends the debtor the notice of the discharge. If the debtor signed a Reaffirmation Agreement and is not represented by an attorney, then the court requires the debtor to appear before it so that it can ascertain whether the debtor understands the Reaffirmation Agreement and that the debt will continue beyond bankruptcy. The debtor can either accept the agreement or cancel the agreement. Regardless, the discharge is granted at this hearing.
A Chapter 7 discharge relieves the debtor of the liability of most prepetition debts and some post petition debts, such as the claims resulting from the rejection of executory contracts or the avoidance of a transfer.
Tags: Assets, attorney, automatic stay, Bankruptcy, Bankruptcy Attorney, Bankruptcy Attorney In Los Angeles, bankruptcy laws, bankruptcy petition, Chapter 7, Child Support, Debt, Debts, discharge, Fines, IRS, Los Angeles Bankruptcy Attorneys, Student Loans, Taxes, unsecured debt
Posted in California Attorney, Chapter 7 Bankruptcy, Chapter 7 Bankruptcy / Chapter 13 Bankruptcy, Creditors, Creditors Meeting, Los Angeles Bankruptcy Attorney and Bankruptcy Lawyer, Secured and Unsecured Debt | No Comments »
July 4, 2010
Chapter 7 Bankruptcy versus Chapter 13 Bankruptcy – Client Example
Rita Geraldo is a single mother with 3 children who lives in a small home in Los Angeles. Rita works as a dental assistant in Beverly Hills but could just make her payments and was nearly drowning in debt. However after a change in the interest rates on her adjustable rate mortgage these payments have doubled and reluctantly she cannot afford to pay her credit card bills. Missed payments have caused the interest rates on her credit cards to skyrocket in only a few months and this is on top of the penalty fees for failing to pay. As her debt grew even larger her credit card companies turned over Rita’s accounts to various debt collection agencies. Before only the fear of debt was keeping her up at night but now the collection agencies are making her phone ring off the hook with threats of lawsuits, garnishments of wages, and levying of bank accounts. Rita knew it was now time to take charge of her debt problems.
Rita had heard of bankruptcy before but was embarrassed and was not sure where to start. Rita found an attorney in Los Angeles near the office where she worked and he walked her through the process of filing for bankruptcy. Most individuals will either file for a Chapter 7 or Chapter 13 bankruptcy. Filing for a chapter 7 would allow her to eliminate all of her unsecured debt such as credit card bills and doctors bills. While filing a chapter 13 puts all of your debt both secured and unsecured on a 3 to 5 year payment plan based on your excess income. In certain circumstances, a Chapter 13 bankruptcy can be used to get rid of a second mortgage entirely. A chapter 7 will only allow you to keep exempt assets which for most will be every asset you own. A Chapter 13 bankruptcywill allow you to keep both exempt and nonexempt property but takes more time and is more complex.
Rita really wanted to keep her home and even if her credit card bills were eliminated she could not afford her 2 mortgages so she decided to file for a Chapter 13 bankruptcy. Filing a Chapter 13 bankruptcycreates the opportunity for a lein strip. A lein strip allows a second mortgage which is generally classified as secured debt to be reclassified as unsecured debt like her credit card bills.
She then told the attorney of all her debts, creditors and collection agencies. After starting the process with the attorney Rita had to take a short Debt Management course online. At the attorney’s Los Angeles office, they took care of the mountains of paperwork involved in the process.
The process still had a few steps left as Rita had to take part in a meeting with the bankruptcy trustee. At the meeting she had to answer questions from the trustee which she answered honestly. The meeting with the trustee includes you, your bankruptcy attorney and your creditors. Most of the time the creditors don’t show up. After it was determined that she was not hiding any assets a payment plan was established using the excess income she had after paying her expenses. This calculation excludes any payments to unsecured debt as expenses (i.e., credit card debt). The payment plan goes to a confirmation where a judge decides if the payment plan is satisfactory. Now as a part of the payment plan she only needs to pay her excess funds over the next 5 years while the rest of her debt is eliminated.
Rita is now living comfortably and can afford to pay her mortgage and all her other bills without living in fear of harassment from debt collection agencies.
To learn more about bankruptcy, feel free to contact Mr. Darvish at (619)324-9529. He is truly an attorney that cares and places great effort in making sure his clients understand the process thoroughly.
Los Angeles Bankruptcy Attorney | Los Angeles Bankruptcy Attorneys
Los Angeles Bankruptcy Lawyer | Los Angeles Bankruptcy Lawyers
Tags: attorney, Bankruptcy, Bankruptcy Attorney, bankruptcy attorneys, Chapter 13, Chapter 7, collection agencies, Credit Card, Creditors, Debt, los angeles bankruptcy lawyer, mortgage, secured debt, unsecured debt
Posted in Chapter 7 Bankruptcy / Chapter 13 Bankruptcy, Creditors, Los Angeles Bankruptcy Attorney and Bankruptcy Lawyer, Secured and Unsecured Debt | No Comments »