Los Angeles Bankruptcy Attorneys
In a town where image is everything, bankruptcy in Los Angeles is something most people do not want to think about, much less talk about. Airing your personal financial struggles can make you feel like a complete failure. Last year, 65,856 bankruptcy cases were filed in the Central District of California Bankruptcy Court, which includes Los Angeles.
Even though it is something that you probably do not want to think about or consider, you may have reached a point where it is impossible to pay your debtors. If this is true, it is an option that you may need to look into.
It may help to have a clear understanding of what bankruptcy is. Bankruptcy is defined as, “a legally declared inability or impairment of ability of an individual or organization to pay its creditors.” It is legal insolvency. Bankruptcy is a legal surrender of your remaining assets into the hands of your creditors.
In the United States, bankruptcy is placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact “uniform laws on the subject of bankruptcies throughout the United States.” The Congress has enacted statute law governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.
Bankruptcy cases are always filed in United States Bankruptcy Court, which is an adjunct to the U.S. District Courts. However, bankruptcy cases, particularly with respect to the validity of exemptions and claims, are often dependent upon law. Because of this, it is usually not possible to generalize bankruptcy law across state lines.
For this reason, it is important for you to know the laws regarding bankruptcy of the state that you live in. If you are going to file bankruptcy in Los Angeles, you need to know the laws that pertain to you in filing a California bankruptcy. You need the help of a Los Angeles bankruptcy attorney who can assist you in understanding how California bankruptcy laws will affect your case.
The kinds of personal bankruptcy that are usually filed in Los Angeles are Chapter 7 and Chapter 13. You will have to decide whether Chapter 7 or Chapter 13 is right for you.
Chapter 7 is a surrender of your non-exempt property to a bankruptcy trustee who then liquidates your property and distributes the proceeds to your unsecured creditors. You are given a discharge on some of your debt in return for this.
Chapter 13 enables you to keep possession and ownership of all of your assets. In return, you have to use some portion of your future income to repay your creditors. Usually, this lasts for a period of three to five years.
Chapter 7 is intended to give you relief from a significant amount of unsecured debt. If you cannot make good on your unsecured debt, Chapter 7 is probably your best option. The goal of Chapter 7 is to give you a clean slate and a fresh start.
Chapter 13 is aimed at helping you catch up on your past-due accounts. A repayment plan for at least a portion of your debt is formulated that usually lasts for a period of three to five years.
Chapter 7 sounds much better to most people. However, Chapter 13 may be better for you. If you have non-exempt property that you want to hold on to, Chapter 13 is probably the better option. Chapter 13 is your only choice if you are not qualified to file Chapter 7.
Chapter 7 has qualifications that you must meet in order to file it in Los Angeles. Your eligibility depends on your income. Your income is compared to the median income of a family your size in California. If your income is lower than the median, you are usually eligible to file Chapter 7. If your income is higher than the median, there are still instances where you can file Chapter 7.
If you can file Chapter 7, California lets you use federal supplemental exemptions in conjunction with your California state exemptions. California has two sets of exemptions. You cannot use both. You have to choose one or the other.
These two sets of exemptions that California has contain some of the same items. A homestead and personal property are examples of this, but the amounts and limits are different on each set of exemptions.
A Los Angeles bankruptcy attorney will help you choose the right set of exemptions for you. He or she can also help you determine whether Chapter 13 or Chapter 7 is better for you in your present financial condition.
It is important that you choose a Los Angeles bankruptcy lawyer to advise you about filing bankruptcy. This is because bankruptcy is a highly specialized area of law.
You need an attorney who specializes in bankruptcy law. This is what a Los Angeles bankruptcy lawyer does. He or she specializes in bankruptcy cases. These are the kind of cases that they work with day in and day out. Los Angeles bankruptcy attorneys stay current on the updates and changes that take place in California bankruptcy law.
BankruptcyHome.com is the Web site where you will find a good Los Angeles bankruptcy lawyer. BankruptcyHome.com is where you will find a trusted Los Angeles bankruptcy attorney who can help you make the right bankruptcy choices.
This decision may affect you and your family for the rest of their life. You deserve the best advice possible from a Los Angeles bankruptcy lawyer near you.
