Los Angeles Bankruptcy Attorney and Lawyer

Car Repossessions- How To Avoid Them By Filing For Bankruptcy

admin — Fri, 13 Apr 2012 23:28:38 +0000

The economy of the world today is a credit driven economy. 96% of the transactions exist as electronic transactions rather than hard cash. This includes companies, countries and consumes like us. We loan out an item for which the bulk payment is difficult and then pay out the original amount plus the interest. We have to pay a monthly sum of money and until that period we can keep it. But if we are not able to pay the payments then we become what the bank calls defaulters. In such a case only a Bankruptcy attorney may save us because in many cases the creditors may come and take the object way. This is known as repossession.
Repossession may be defined as the creditor or the financial institution taking the object back when you fail to pay an installment on it according to the contract. When they give you the object they also give you the right of possession of the object. They however retain the right of ownership until you pay out the full amount plus the interest that was agreed upon by the contract. When you fail to pay the interest and the amount within the time period then you become defaulters. The most common type of repossession is car repossession.
The creditors may or may not be bound to reposes the car without a court order depending upon the county and the state in which you currently reside in. You may ask your lawyer the details of the process. In order to avoid the repossession of your car you may hire an attorney like Los Angeles Bankruptcy Attorney Alon Darvish. However for them to work their magic, a Bankruptcy Lawyer demands that you let them know in advance when you fear that you will not be able to make your payments. This is because the Bankruptcy lawyer and the creditor may be able to work out a payment plan that is to the mutual satisfaction of the creditor and the debtor.
The procedure that the creditors follow for repossession is that they may or may not send you a notice prior to the repossession. They are not bound by any law to send a prior notice to the debtor however most of the financial institutions send a notice to avoid any sort of legal tangles and troubles. Then they may come by themselves or send a repo agent to collect the car. The repo agent is legally allowed to trespass you property and to pick the lock of your car. The car may either be towed away or driven away by the repo agent. You will have a few days to pay the balance and the repo charges and take the car or the car may be sold. If the car is auctioned off in public, then they will also send you a notice and you will also be allowed to bid for the car. However most people prefer that the car be sold rather than buying it.

What Assets Do You Need to Disclose To the Bankruptcy Court When Filing For Bankruptcy

admin — Sat, 24 Dec 2011 01:41:10 +0000

What Assets Do You Need to Disclose To the Bankruptcy Court When Filing For Bankruptcy?

The short answer is “All”! The bankruptcy court must know about all your assets including those assets that are located in other countries (i.e., Mexico, Europe, Middle East, South America). They must know what assets you have in order to determine what can be sold/liquidated by the bankruptcy trustee and distributed to your creditors.

Sometimes, debtors do not realize that they have certain assets. Generally, people think of assets as homes, cars and bank accounts. However, it extends even further than that. If you are a real estate broker, the commission you will potentially earn is considered an asset and is subject to the bankruptcy trustee. Existing lawsuits and potential lawsuits are also considered assets. Even if you potentially are able to inherit assets after a family passes away within 6 months of filing your bankruptcy is considered an asset.

That is why you must be careful when you file for bankruptcy – especially a Chapter 7 bankruptcy. When you file for bankruptcy, your bankruptcy attorney will tell you that you are only entitled to keep approximately $23,000 to $26,000 in assets without having the bankruptcy court taking it and selling/liquidating it. Anything above and beyond this amount is up for grabs by the bankruptcy trustee. That is why you must be extremely cautious when you file for bankruptcy. We have seen homowners file for bankruptcy on their know even though they have a substnatial amount of equity in their home. Homeowners believe that the courts cannot touch their personal residence. They are wrong! The bankruptcy trustee is entitled to sell it, distribute the proceeds to your creditors and the remaining balance (after attorneys fees and trustees fees) will be distributed to you.

If you have any questions on the potential consequences of filing for bankruptcy, please feel free to one of our bankruptcy attorneys. They will be glad to help you decide whether bankruptcy is the right decision for you.

Making sure your bankruptcy filing is complete

admin — Sat, 17 Dec 2011 00:17:51 +0000

I have had situations where clients have filed for bankruptcy but have failed to complete the process. Failing to complete the process can be expensive. I will give you an example. There are 2 courses that you must take in order to receive a discharge in bankruptcy. The first course is a credit counseling course. Everyone must take this course in order to file for bankruptcy. The second course is a personal financial management course. You can only take this second course after you have filed for bankruptcy. If you fail to take this second course, the bankruptcy court will not give you a warning and they will dismiss your case. We try to remind our clients to take the second course immediately. However certain individuals tend to procrastinate or just merely forget. If you have failed to take this course, you’ll be required to pay $240 in addition to attorneys fees to reopen the case and file the personal financial management course certificate. These courses are fairly affordable. It ranges from $15 to $45. Whether you hire the Law Offices of Alon Darvish or another bankruptcy lawyer, please do yourself a favor and take these courses immediately.

Discharging Debt Based On Fraud In Bankruptcy

admin — Fri, 02 Dec 2011 23:19:00 +0000

Some may think that filing for bankruptcy will eliminate debts based on fraud. In actuality, It may be true, but only if the creditor fails to file an adversary proceeding in bankruptcy court within 60 days from the initial meeting of creditors. Some creditors may not know too much about bankruptcy law and may not know of the 60 day rule. If they fail to file the adversary petition (basically, a lawsuit filed within the bankruptcy court), the lose their rights and the debt shall be discharged in bankruptcy. However, sometimes, creditors will file an adversary proceeding in bankruptcy court to protect their interest.

If you have a lawsuit filed against you in civil court and the allegations are based on fraud, you should be aware that this particular debt may not be discharged in bankruptcy even though all your other debt may be discharged. If the creditor files an adversary proceeding, it is as if they filed filed a lawsuit against you. It is your responsibility to defend this lawsuit. Otherwise, you will continue to be held responsible for it even after bankruptcy.

The best person to ask whether you should file for bankruptcy is a bankruptcy attorney. By speaking to Mr. Darvish, he can guide you and determine whether it is worth fighting such an adversary claim in bankruptcy court. You may reach him personally at (310)205-5529 or visit his website at www.BankruptcyLALaw.com

Liquidation of Assets in a Chapter 7 Bankruptcy

admin — Fri, 02 Dec 2011 01:43:00 +0000

Protect Your Assets When Filing For Chapter 7 Bankruptcy

When filing for a Chapter7 bankruptcy, you must be careful in determining whether filing for bankruptcy is the right decision. Otherwise, it can be devastating. Should you have equity in your home, equity in your vehicles, or cash in your bank accounts, you must make sure to determine whether these assets will be considered exempt in bankruptcy – otherwise, a bankruptcy trustee will sell these assets and pay off creditors.

There is a misbelieve that everyone is entitled to one vehicle in bankruptcy, or they are entitled to keep their home in bankruptcy. To a certain degree, it is true. However, only if there is very little equity in these assets. The whole idea of filing for bankruptcy is to provide you with a fresh start – that means, to eliminate your debt and begin a new life. It does not mean “keep all your assets and eliminate your debt”.

There is a reason why I wrote a blog on this topic. Because many individuals that wish to file for bankruptcy do actually have assets that they cannot exempt and they must be aware of this situation before filing for bankruptcy because the drawback to filing for Chapter 7 bankruptcy is that you cannot turn back. Once you file, you cannot ask the bankruptcy court to dismiss your case. The bankruptcy trustee will move forward in selling assets to pay off creditors.

To determine whether you can file file for bankruptcy and protect your assets,it is best to speak to a Los Angeles Bankruptcy Attorney. Contact our office at (310)205-5529 to discuss your situation if further detail or visit our website at www.BankruptcyLALaw.com

Chapter 7 Bankruptcy – How Can A Bankruptcy Lawyer Help

admin — Sun, 18 Sep 2011 23:50:55 +0000

What is a Chapter 7 Bankruptcy and who can qualify for this type of protection? Bankruptcy is not a scary word any longer with the economy being so bad. Regular folks have had to find ways to relieve the pressures of the debts they owe. Filing a Chapter 7 bankruptcy can help such people who find themselves in this type of situation. A Chapter 7 Bankruptcy also known as liquidation is the most common filing type as well as one of the fastest ways to start fresh with having most if not all of your debts discharged. The main goal of a Chapter 7 Bankruptcy is for the debtor to emerge out of a financial crisis and start fresh. Once you are aware of the options and find a Los Angeles Bankruptcy Attorney, they will assist you in preparing a bankruptcy petition. They will also attend the Creditors Meeting with you. You will also be assigned a bankruptcy trustee to verify all the information. Today a Chapter 7 Bankruptcy usually takes 4-6 months until you receive a discharge of all your debts. After the 4 to 6 months, you now have a fresh start without any debts holding you back.

How Much Does Filing For Bankruptcy Cost?

admin — Sun, 18 Sep 2011 23:43:11 +0000

Many people who call our offices often ask first “how much will it cost me to file bankruptcy?” Under the circumstances it is understandable. Planning for bankruptcy is a difficult time in their lives and we completely understand the question. There are many advertisements on TV and radio claiming a cheap price. Frankly one must always read the small print because there is almost always a catch to these claims. If there was a sure way to put a single price for our clients, we would. However, everyone’s circumstances are different and needs different attention from our lawyers. Coming in for a free consultation is the best way to find out how much it will cost to file for bankruptcy. Our attorneys can definitely answer that question for you, and usually over the phone.

During a consultation, discussion of your own finances will be conducted by an experienced and non-judgmental professional lawyer. He will give you the time to discover exactly what your situation really is and how the law might apply to you as well as guiding you in the right type of bankruptcy to file.

People who come to see us need help and assistance because they are losing sleep over their problems. It is important to hear the right path for you from an experienced attorney who is here to assist you and not to take advantage of you or your family. People’s financial situations are personal and just like a finger print “not everyone is the same”. Therefore, why would we charge the same price for planning different ways to assist our clients. In a one size fits all pricing you might not get the assistance you really might need. We promise to you that when you decide to schedule a consultation with us that the price we offer will be fair and we will begin analyzing each case with the upmost importance to get you back on a fresh start.

Affordable Los Angeles Bankruptcy Attorneys and Lawyers

admin — Thu, 11 Aug 2011 03:31:06 +0000

Affordable Bankruptcy Lawyers and Attorneys in Los Angeles

Many people who call our offices often ask first “how much will it cost me to file bankruptcy?” Under the circumstances it is understandable, planning for bankruptcy is a difficult time in their lives and we completely understand the question. There are many advertisements on TV and radio claiming a cheap price. Frankly one must always read the fine print because there is almost always a catch to these claims. If there was a sure way to put a single price for our clients we would, but everyone’s circumstances are different and needs different attention from our lawyers. Coming in for a free consultation is the best way to have our attorney’s give you a price of your bankruptcy that can help you as an individual not just another number. Although we do not charge our clients $300 to file for bankruptcy, I can assure you that we are the most affordable Bankruptcy Attorneys in Los Angeles.

During a consultation, a discussion about your finances will be conducted by a professional who gives you the time and attention you deserve. We discover exactly what your situation really is and how the law might apply to you. We also guide you on the right type of bankruptcy to file – Chapter 7 or Chapter 13. People who come see us need help and assistance because they are losing sleep over their problems. It is important to hear what your options are from an experienced bankruptcy lawyer who is here to assist you and not to take advantage of you or your family. People’s financial situations are personal and just like a finger print “not everyone is the same”. Therefore, why would we charge the same price for planning different ways to assist our clients. In a one size fits all pricing, you might not get the assistance you really need or the guidance from an experienced bankruptcy attorney?

Our prices are affordable, and that is why we claim ourselves to be the most affordable Bankruptcy Lawyers in Los Angeles. We promise to you that when you decide to schedule a consultation with us, that the price we offer will be fair and we will begin analyzing each case with the utmost importance to get you fresh start.

So, feel free to call us for a free no obligation consultation at (800)921-6513.

How To Strip Your Second Mortgage From Your Home In Bankruptcy – Lien Stripping

admin — Sun, 13 Feb 2011 00:38:45 +0000

The benefit for filing a Chapter 13 is that you may be able to strip your second mortgage. This is called a “lien strip” or “lien avoidance”. This can make a difference between being able to save your home or having it go through foreclosure. Lien Stripping does not necessarily mean your second mortgage is eliminated, but it is converted from a secured debt to an unsecured debt – and, it only occurs in a Chapter 13 bankruptcy. Once your Chapter 13 bankruptcy plan is completed (3 to 5 years), your second mortgage is eliminated much like your credit card debts. By changing its status to unsecured debt, it is treated the same as if it were to be a credit card or medical debt. The unsecured debt (including your second mortgage) will be discharged after your bankruptcy plan is complete, whereas your secured debt must be continued to be paid on (i.e., your first mortgage).

Example for Lien Stripping:

A home in California was purchased for $250,000. The debtor obtained a first mortgage for $200,000 (1st mortgage) secured by a deed of trust, and a 2nd mortgage of $50,000, also secured by a deed of trust. The value of the property has declined because of the economy and it is now only worth $180,000. Because the value of the property is now less then what the 1st mortgage is, the 2nd mortgage has no value, which then becomes unsecured.

In a Chapter 13 Bankruptcy, the owner may now have the second mortgage lien stripped off from the property. This means, it could be treated in the bankruptcy plan as ordinary unsecured debt.

How Lien Stripping Occurs:

During a foreclosure process, the property owner may declare bankruptcy (either a Chapter 7 or Chapter 13). However, in order for a Lien Strip to work, the debtor must file for Chapter 13. Filing bankruptcy freezes a foreclosure (also called an automatic stay). The bankruptcy court than reviews your case. In most Chapter 13 bankruptcies where the second mortgage has no equity, the court may rule the second mortgage as unsecured debt, which is called “lien stripping”.

This is What May Occur:

• The property owner purchases a home by obtaining a first and second mortgage.
• Due to the economy, the property value falls below what the debtor owes on the first mortgage.
• If there is insufficient equity left in the property to cover the second mortgage, the court may strip the second mortgage lien off the property. This means that the debt becomes unsecured debt.
• Filing for bankruptcy may stop a foreclosure from happening.

The process of lien stripping may occur during the bankruptcy process. This not only helps the debtor keep the home, but also eliminates some of the debt owed on the property.

A lien strip is not a typical occurrence in a bankruptcy. It requires extensive research and drafting of court documents. It should be performed by an experienced bankruptcy attorney. Hiring an attorney for this type of case is very important. You may need all the legal advice for this situation to help and ensure the process moves forward efficiently and successfully.

Hiring a Los Angeles Bankruptcy Attorney

admin — Sun, 13 Feb 2011 00:28:12 +0000

Hiring A Los Angeles Bankruptcy

Hiring a Los Angeles Bankruptcy Attorney is crucial to becoming debt free. 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 Los Angeles 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.

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 Los Angeles bankruptcy attorney, they will represent you during your case. Bankruptcy attorney will send out 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 bankruptcy attorney, not you. Your Los Angeles Bankruptcy 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 Los Angeles 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.

Los Angeles Bankruptcy Attorney