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

Los Angeles Bankruptcy Attorney

Santos is a student in Los Angeles who has been out of work for nearly a year. Last year both of his cars were repossessed in addition to a boat. The cars that were repossessed were financed and Santos thought he no longer had to worry about that debt. Just recently he has learned that the finance company he used to buy the cars now has a levy on his bank account. Since Santos is out of work, his wife Rose is the only one with any income. As they were already struggling with bills, the bank levy has resulted in thousands in overdraft fees.

Santos first considered debt consolidation. After searching online he found a debt consolidation company in Los Angeles that guaranteed he would be debt free in no time. Debt consolidation is not for everyone, since the amount owed is reduced and payments are made by a 3rd party, this negatively impacts your credit score sometimes to the point where it is seen by creditors as the same as bankruptcy. Therefore you get all of the burden of bankruptcy without the benefit of no longer paying the unsecured debt. In addition, you should be aware that there are many debt consolidation companies that are illegitimate and want to scam you. Unlike bankruptcy attorneys, to become a debt consolidation company there is no requirement for certification or training, which puts few barriers to crooks setting up a debt consolidation company. Even if the debt consolidation went smoothly there may be unforeseen future events that may force you to eventually declare bankruptcy anyway, but only after you’ve spent thousands paying the debt consolidation service fees and unsecured debts that could have been discharged earlier. To compound the problem, any debt that is forgiven by the lender will be considered income on your tax return that you will have to pay taxes on, while in bankruptcy debts discharged are not treated as income.

He then came to his senses and found a bankruptcy attorney in Los Angeles. Their expenses were already exceeding their income so they were eligible for a chapter 7 bankruptcy. Filing for bankruptcy allows you to recover any funds taken from you through bank levies or wage garnishments up to 10 days before filing. Therefore in these situations it is in your best interest to file quickly. Since Santos and Rose filed quickly, they were not only able to discharge there credit card debts and overdraft penalties they could also recover the funds that were taken from their account through the bank levy.

Generally, filing for bankruptcy stops all of your creditors from collecting even before the bankruptcy is granted. Once a bankruptcy petition is filed, any garnishment of wages, levies on bank accounts and lawsuits stop. Even if a bankruptcy is filed 1 minute before the sale of your home and it is sold anyway, the transaction can be reversed and you will continue to own your home. However the best course of action is to avoid this hassle and contact a bankruptcy attorney before this happens.

Creditors take notice once there is a stay and may be more willing to negotiate. This may be helpful on secured debts such as a mortgage but not as much with unsecured debts like credit cards. Negotiating with credit card bills may be a trap for the unprepared, as the reduction in the amount you owe turns into income you must pay taxes on. In addition, you may find that not all of your creditors will be willing to negotiate and you will in the end still file for bankruptcy but only after paying more money to creditors than you would have otherwise.

A chapter 7 bankruptcy allows all of your unsecured debts like credit cards to be discharged. A chapter 13 allows you to keep more of your property (i.e., home in foreclosure, automobile, etc…) and puts the debts on a 3-5 year payment plan based on the amount of excess income after paying expenses, but the amount of unsecured debt cannot exceed 300,000.

Susan’s attorney felt that a chapter 7 bankruptcy was the right choice because although the mortgage on her home in Los Angeles was upside down her unsecured debt was too high for a chapter 13 and her current income did not exceed her expenses. Susan’s attorney helped her through the process of a chapter 7 bankruptcy.

Susan now had a fresh start and was able to keep living in her home and running her dance studio. While many believe bankruptcy eliminates any future ability to get credit Susan was able to get new credit cards shortly after receiving her discharge

Bankruptcy Attorney in Los Angeles | Bankruptcy Attorneys in Los Angeles

Bankruptcy Lawyer in Los Angeles | Bankruptcy Lawyers in Los Angeles

• State your name for the record
• Did you read the bankruptcy petition prior to signing it
• Did you understand the contents of the bankruptcy petition prior to signing
• Have you listed all your debts and assets in the bankruptcy schedule
• Have you sold or transferred any assets (including real estate) within the past 4 years?
• Do you owe any child support or alimony (domestic support obligations)?

By the time you attend the creditors meeting, the bankrupty trustee has already gone through your bankruptcy petition, your tax returns, pay stubs, etc…to determine what your financial situation is.  If they determine something unusual about your bankruptcy petition (i.e., you’re filing for bankruptcy, yet you own two vehicles (a BMW and a Range Rover) which you would like to keep, they question your motives.

To learn more about filing for bankruptcy or the types of questions they may potentially ask you, feel free to contact a Los Angeles Bankruptcy Attorney.