Filing for a Los Angeles bankruptcy was probably not among your top life goals.
However‚ you may come to the realization at some point that it makes the most sense for the situation at hand. It’s not an admission of failure‚ but rather a smart‚ strategic move that will allow you to move forward with your life and achieve other important goals.
That said‚ it’s not a decision you should make without careful consideration. Your bankruptcy attorney should take the time to talk frankly and thoroughly with you about what a bankruptcy is and is not‚ what it can do for you and what it can’t and how it’s going to impact your future – the good and the bad.
If you feel your questions and concerns aren’t being properly addressed‚ it may be time to shop around for a new lawyer.
What we want to do here‚ with our site and specifically with this blog post‚ is give you a foundation of knowledge of the process. It’s not meant to be an all-inclusive course‚ but rather a starting point. Understand that there may always be exceptions‚ and each situation is different.
Here are some of the main points to keep in mind as you contemplate filing for a bankruptcy:
- Know the two types of bankruptcy available to you. For individuals‚ that’s going to be Chapter 7 and Chapter 13. The former offers liquidation of assets‚ while the latter allows you to establish a payment plan. There are benefits to each‚ with Chapter 7 the preferred option for those whose debt has become unmanageable. However‚ recognize that one must qualify for a Chapter 7 filing‚ and new laws passed in 2005 have made that tougher.
- Bankruptcy is not an option you should choose without care. Most people turn to this option when they have been affected by some major life event‚ such as a serious illness‚ death‚ divorce‚ job loss or other problem that has significantly increased their debt and/or reduced their income.
- Know that more than likely‚ you’ll get to keep your stuff. It’s a common misconception that bankruptcy forces you to forfeit your assets. Personal property such as household furnishings‚ clothing‚ electronics and heirloom items are often exempt. In some cases‚ you may even be able to hang onto your home and vehicle.
- You will need to plan for bankruptcy – financially. It may seem to make little sense that you have to pay to obtain relief. However‚ the reality is that bankruptcies are generally not inexpensive. Filing fees and such can cost several thousand dollars. However‚ initial attorney consultations are free. During this time‚ you can hammer out a money strategy that will allow you to file in a timely manner.
- Bankruptcy might not make your credit any worse. That may sound like an overreach‚ but the truth is‚ if you have been chronically late with your payments‚ a bankruptcy may not be as big of a blow to your credit score as you might think. In fact‚ there are some clients who actually see their score improve substantially within a year or two of bankruptcy.
Again‚ all of this represents a starting point. To get more information about your individual case‚ call us today.
If you are contemplating bankruptcy in Los Angeles‚ contact Cal West Law to schedule your free consultation. Call (800) 568-0707.
14 key factors when considering bankruptcy‚ October 2013‚ By Dana Dratch‚ CreditCards.com