Long Beach Bankruptcy Lawyer

Whether with reference to an organisation, a business or an individual, the term bankruptcy seems to conjure up thoughts of financial doom. This does not necessarily have to be true. Bankruptcy can, in fact, provide a fresh financial start to people with unmanageable debts.

All bankruptcy cases are handled in the federal court. The details and nuances of the bankruptcy code are many. It is extremely important to follow all the rules, as failure to comply with the rules or the code may lead to the dismissal of your case. Therefore, while it is not mandatory to have a bankruptcy lawyer to file for bankruptcy, it is strongly recommended that you hire a professional attorney specialised in the same.  (Click here for a FREE evaluation of your case.)

Of the four types of bankruptcy cases, the two main ones are Chapter 7 and Chapter 13.

Chapter 7
This is also known as the ‘straight’ bankruptcy. In this case, the debtor has to give up all property, except certain items that are called “exemptions.” Once the debtor’s assets are liquidated the money is used to pay the creditors. Your Long Beach bankruptcy attorney will help you list out all your debts that will be discharged and make a record of all your property and assets.

 Some important points in Chapter 7:

• The California bankruptcy exemptions include two schemes, which need to be studied in detail before you decide what is appropriate for you. Some of the exemptions include property worth $50,000 for individuals, clothing, food, appliances, jewellery valued up to $5000, health benefits, homeowner’s insurance money for 6 months and motor vehicles worth up to $1900.
• Debts that cannot be discharged are child support, alimony, student loans, unlisted debts etc.

Chapter 13
This is referred to as ‘debt adjustment’. In this case, the debtor files a financial plan to pay off the debts. Your bankruptcy lawyer will assist in creating a systematic repayment plan, after listing out paid and outstanding debts.

It is vital that every relevant financial detail is included. The individual has five years to pay off his debts and the repayment plan is for the entire period. A trustee, appointed by the court, will approve this plan, after consulting the creditors.

Chapter 11 is usually used by corporations and individuals with huge debts and Chapter 12 is meant for family farmers.

Our sponsoring Long Beach bankruptcy lawyers are the best in the trade. Not only are they up to date on all the details and revisions of bankruptcy law, but are also well experienced and highly reputed.  Your Long Beach bankruptcy lawyer will help you understand which chapter you should file bankruptcy under. He or she will handle all the aspects of the process, including making a list of assets and debts and working out a repayment plan that suits your financial situation. If the case goes to court, then your Long Beach bankruptcy lawyer will help you resolve issues.