Porter Ranch Bankruptcy Attorneys
Helping Clients in Porter Ranch, CA Get a Fresh Start
Are you struggling with debt? Are you being harassed by creditors? Are you facing foreclosure or repossession? If you answered “yes” to any of these questions, you may be considering bankruptcy. At RJB Law Offices, we understand that this is a difficult time for you and your family. Our Porter Ranch general bankruptcy lawyers are here to help you navigate the process and make the best decisions for your future.
Call (888) 256-8581or contact us onlineto schedule a consultation with our team today.
What Is Bankruptcy?
Bankruptcy is a legal process that allows individuals and businesses to eliminate or repay their debts. It is designed to help people who can no longer pay their creditors get a fresh start. Bankruptcy can stop foreclosure on your home, repossession of your car, and other collection actions by your creditors. It can also eliminate many types of debt and provide you with a manageable repayment plan for debts that cannot be discharged.
What Are the Different Types of Bankruptcy?
There are several different types of bankruptcy, but the two most common types are Chapter 7 and Chapter 13. The type of bankruptcy that is right for you will depend on your unique situation.
Chapter 7
Chapter 7 bankruptcy is often referred to as “liquidation” bankruptcy. This is because the bankruptcy trustee may sell some of your property to repay your creditors. However, many people who file for Chapter 7 bankruptcy are able to keep all of their property. This is because California has generous property exemptions. If you do not have any nonexempt property, your creditors will not receive anything. This is called a “no-asset” bankruptcy.
Chapter 7 bankruptcy is a relatively quick process. Most cases are completed in three to six months. Once your case is complete, your eligible debts will be discharged. This means that you will no longer be legally obligated to repay them. However, not all debts are dischargeable. You will still be responsible for paying your student loans, child support, alimony, and certain other debts.
Chapter 13
Chapter 13 bankruptcy is often referred to as “reorganization” bankruptcy. This is because you will be required to repay your debts over a three- to five-year period. The amount you will be required to repay will depend on your income, expenses, and the type of debt you have. At the end of your repayment period, any remaining eligible debts will be discharged.
Chapter 13 bankruptcy is a good option for people who are facing foreclosure or repossession. When you file for Chapter 13 bankruptcy, an automatic stay will go into effect. This will stop all collection actions by your creditors, including foreclosure and repossession. You will be able to keep your home and car as long as you continue to make your mortgage and car payments. If you are behind on your mortgage or car payments, you will be able to catch up on your missed payments over time.
Chapter 13 bankruptcy is also a good option for people who do not qualify for Chapter 7 bankruptcy. To qualify for Chapter 7 bankruptcy, you must pass the means test. This is a test that compares your income to the median income in your state. If your income is below the median, you will qualify for Chapter 7 bankruptcy. If your income is above the median, you may still qualify for Chapter 7 bankruptcy if you do not have enough disposable income to repay your debts. If you do not qualify for Chapter 7 bankruptcy, you can still file for Chapter 13 bankruptcy.
What Is the Bankruptcy Process?
The bankruptcy process begins when you file a petition with the bankruptcy court. You will need to provide detailed information about your income, expenses, debts, and property. You will also need to provide information about your financial transactions over the past two years. This includes information about your income, property transfers, and payments to creditors.
Once your petition is filed, an automatic stay will go into effect. This will stop all collection actions by your creditors, including foreclosure and repossession. Your creditors will be notified of your bankruptcy filing and will be required to stop contacting you. If a creditor continues to contact you, you should refer them to your bankruptcy lawyer.
Call (888) 256-8581 or contact us online to schedule a consultation with a Porter Ranch bankruptcy lawyer.
What Are the Benefits of Bankruptcy?
Bankruptcy offers many benefits. It can help you eliminate or repay your debts. It can also stop foreclosure, repossession, and other collection actions by your creditors. Bankruptcy can also help you rebuild your credit and get a fresh start.
Some of the benefits of bankruptcy include:
- Discharge of eligible debts
- Automatic stay
- Ability to keep your home and car
- Ability to catch up on missed mortgage and car payments
- Ability to rebuild your credit
Bankruptcy Alternatives
Debt Settlement
Debt settlement involves offering a lump sum, often 50% or even 25% of the original debt, to satisfy the creditor. It's a viable option when unable to afford full payments, often accepted by creditors to avoid receiving nothing or costly litigation.
Tax Resolution
If you or a family member has IRS tax debt problems, you are not the only one. Owing back taxes can result in more problems than just owing taxes. Difficulty sleeping, anxiety, and other health problems may result, as well as marital and familial discord.
The Installment Agreement Program enables you to settle dues through monthly payments, with various plans based on the owed amount. Additionally, the Offer in Compromise allows payment of a fraction of owed taxes, with the remainder forgiven, relieving you of tax liability.
Contact Our Porter Ranch Bankruptcy Lawyers
RJB Law Offices understands the challenges that come with financial difficulties. Our Porter Ranch 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 Porter Ranch, contact RJB Law Offices today. Schedule a consultation to discuss your unique situation and take the first step toward achieving financial stability.
Call (888) 256-8581or contact us online to schedule a consultation with a bankruptcy lawyer near you.
