Who Can File Bankruptcy?

Bankruptcy is a legal process that helps debtors seek relief from the debts they cannot pay, while also helping creditors get reimbursed from the debtor’s non-essential property or assets. 

Are you curious on who can file bankruptcy in Pasadena? The decision to declare bankruptcy is tough. You may feel overwhelmed, and bankruptcy may appear to be your only alternative. However, consider the decision carefully because it can have long-lasting consequences. 

Bankruptcy may not always work to save your house or property, so you should consult with a bankruptcy attorney to determine if it is a viable choice for you. Since there are various sorts of bankruptcy, one may be more suitable for you than another. To choose whether to file for bankruptcy, you must consider the following:

• What alternatives exist to declaring bankruptcy;
• Which form of bankruptcy is your best alternative; and
• What debts are removed (discharged) in bankruptcy.

At the Law Office of Daniela Romero, we have seasoned attorneys who concentrate on bankruptcies and provide rapid legal action, so that you can get back on your feet as quickly as possible after filing for bankruptcy. We are ready 24/7 to discuss your legal alternatives.

Why do I need a Bankruptcy Attorney in Pasadena, CA.?

Almost anyone can file for bankruptcy given they must meet several criteria. The question of who can file for bankruptcy in Pasadena would best be answered by an experienced bankruptcy attorney in California. With this, when considering of checking your eligibility, it is important to consult with a trusted attorney and see below to see its advantages:

Someone Else Completes the Forms

You can hire an attorney to complete all bankruptcy documents. You will also skip the headache of filling out all those papers, detailing your assets and obligations, and gathering the appropriate paperwork.

Better Chances for Approval

All the statistics indicate that the success rate for bankruptcy cases with an attorney was much greater than for those who filed on their own. A bankruptcy attorney from a reputable law firm will boost your chances of eliminating your debt.

All Bankruptcy Options Laid Out

A lawyer will assess your situation and know your available options. Prior to filing for bankruptcy, it may be preferable to pursue debt consolidation or debt negotiation for the payback of any outstanding debt.

If bankruptcy is the best option, the attorney should explain which type of bankruptcy from the United States Bankruptcy Code is most applicable to your situation. Whether it’s a Chapter 7 liquidation or a Chapter 13 reorganization payment plan, your attorney will advise you of your eligibility based on the means test, as well as which option is optimal for your circumstances.

Confront Obnoxious Collectors

When you file for bankruptcy, the court automatically issues a stay. This prohibits any collection activities and calls from any entity, including collection agencies, individual debt collectors, and other attorneys. Additionally, this prohibits you from being sued for the unpaid bill.

Eliminate Dischargeable Debt

A bankruptcy discharge eliminates the debtor’s liability. In other words, if your debts are discharged, you will not be required to repay them following the bankruptcy.

Obviously, not all incurred debts are dischargeable. An attorney can evaluate all of your secured and unsecured debts to decide which chapter of bankruptcy will allow you to discharge them. Your attorney should be able to handle tax debt, student loan debt, alimony, credit card debt, and medical debt, among other sorts of debt.

Ask your attorney which of your debts are dischargeable and which are not.

How to Obtain Bankruptcy Status in California

Filing for bankruptcy in California is no longer a time-consuming and difficult process if you have the correct legal representation. The first and possibly most crucial step is to establish which chapter of bankruptcy is appropriate for you.

The overwhelming majority of personal bankruptcies come under either Chapter 7 or Chapter 13. Each Chapter describes specific benefits based on the specific circumstances of the individual(s) reviewing them.

A Chapter 7 bankruptcy, for instance, can discharge an unlimited amount of unsecured debt, such as medical bills, credit cards, and the like, without requiring a repayment plan, whereas a Chapter 13 bankruptcy allows you to retain equity in valuable assets, such as homes and vehicles, by maintaining an affordable repayment plan free of interest and late fees.

What Are the Conditions?

Although numerous factors are evaluated when establishing an individual’s eligibility for either chapter of bankruptcy, three stand out: (1) your average monthly household income, (2) your monthly household budget, and (3) the assets you own at the time of filing. To qualify for Chapter 7, your household’s income cannot be much higher than the state’s median income, as is the case in every other state.

There are no income requirements to qualify for Chapter 13, which allows you to lower and restructure your debts. This means you will never be told your income is too high to qualify.

Moreover, in both Chapters of bankruptcy, your budget and disposable income are thoroughly examined. In a Chapter 7 bankruptcy, you are expected to establish a budget that does not include a considerable amount of disposable income. In contrast, in a Chapter 13 bankruptcy, your budget only needs to show that you can afford your monthly payment.

Additionally, while consulting an attorney, persons having interests in real estate or valuable assets must disclose such holdings. There are exemptions (protections) in the bankruptcy code that allow individuals to retain homes, vehicles, and bank accounts with differing amounts of equity/value. It is strongly recommended that you speak with an expert bankruptcy attorney to establish whether you can apply for any chapter of bankruptcy while retaining an asset. They will be able to precisely determine the worth of your assets and apply the applicable exemption for bankruptcy (s).

Call our Pasadena Bankruptcy Lawyers Now!

Curious on who can file bankruptcy in Pasadena? Concerned about how much it will cost to file bankruptcy? Nervous about how bankruptcy will affect your credit? Whatever is holding you back, it is time to stop worrying and start taking control again. We can help you do just that, put you back in control of your financial future. So, request a free phone consultation now. You have nothing to lose and peace of mind to gain. We make bankruptcy filing affordable and help you to rebuild your credit for free.

What are you waiting for? Feel free to call us to Schedule your free phone consultation, or you can do it online. We would be glad to be of assistance on your legal concerns regarding bankruptcy.