Are you consistently struggling to pay your bills? Are you stressed about creditors harassing you? Are you worried about losing your home or car? It may be time to consider bankruptcy as a smart and realistic option. Contrary to popular belief, bankruptcy isn’t always a bad thing. In fact, bankruptcy provides a fresh start by allowing you to eliminate or restructure your debts.

Additionally, bankruptcy can help enhance financial knowledge and responsible financial management. Through bankruptcy proceedings, individuals often receive mandatory credit counseling and financial education programs designed to equip them with valuable insight and skills to make better financial decisions in the future, which helps to prevent debt recurrence.

If you’re thinking about filing for bankruptcy, the next step is finding an experienced attorney to help guide you through the complex process. Look for an Arleta bankruptcy attorney, who has the experience and the legal expertise to successfully navigate you through the bankruptcy case to completion in the Central District of California. With a decision as big as this, you want to make sure you choose a bankruptcy attorney with an outstanding reputation in the community and a track record of success.

Take comfort in knowing that the people who work with our Arleta bankruptcy attorney keep all their property and integrity. Bankruptcy doesn’t have to be as scary as it sounds. It is your path to financial freedom, acting as a way to protect your assets, eliminate debts and get a fresh start.

Arleta bankruptcy attorney, Kevin Simon, is committed to being open and honest with you about bankruptcy. With over 25 years of experience helping Arleta clients successfully navigate the bankruptcy process, we’ve helped over 8,000 clients get their finances back on track, and we're ready to help you. Contact us for a free consultation to learn about all your debt-relief options.

What Is Bankruptcy?

Bankruptcy is a legal proceeding under federal law that can eliminate many kinds of debt. It is a protection and under federal law that is a realistic and resourceful option for many of those who are struggling financially.

Filing for bankruptcy is a major decision and one that requires professional advice and guidance. When you choose to work with our experienced Arleta attorney, you will never feel alone. Our dedicated team will outline your debt-relief options and help determine whether bankruptcy is the right solution for you. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two most common types of bankruptcy filed by individuals, couples, and families.

Chapter 7 Bankruptcy

The majority of people opt to file for Chapter 7 because it can eliminate debts without having to repay anything to unsecured creditors. With a process that takes approximately 90 days, Chapter 7 is also the fastest path through bankruptcy.

Chapter 7 bankruptcy prevents lawsuits, wage garnishments, and bank levies. Our experienced Arleta bankruptcy attorney will help you determine if you qualify for Chapter 7 and whether it is the option that best fits your personal financial situation. Additionally, Chapter 7 is relatively inexpensive compared to other types of bankruptcy. There’s typically no payment to creditors and attorney’s fees are likely to be less.

Most Chapter 7 cases are referred to as “no asset” cases, which means there is no liquidation of ANY of the debtor’s property. This is typically because most of the debtor’s assets are either exempt or of inconsequential value, which means liquidating them wouldn’t bring any worthwhile payout to creditors.

Chapter 13 Bankruptcy

Chapter 13 is a good option if you do not qualify for a Chapter 7 bankruptcy due to high income, if you are behind on house or car payments. For those who have filed a Chapter 7 within the last eight years, Chapter 13 can be the perfect alternative.

Chapter 13 gives you the extra time and space you deserve to catch up on overdue payments. Chapter 13 bankruptcy allows you to repay your debts over a period of three to five years. It also presses the pause button on the foreclosure process, allowing you to save your home. Additionally, wage garnishments, bank levies, and all lawsuits are stopped. .

Once you file for Chapter 13 bankruptcy, a trustee will be assigned to your case. Our Arleta bankruptcy attorney will work with the trustee to set up a repayment plan and ensure the monthly amounts due are affordable.

Chapter 13 repayment plans include unsecured debt like credit card bills, personal loans, and medical payments. Depending on your income and expenses, you may not be required to pay these debts at all. In fact, many Chapter 13 filers end up paying nothing or pennies on the dollar for their unsecured debts. The only requirement is repaying secured debt like a mortgage or car payments.

Most remaining debts will be discharged once your Chapter 13 repayment plan is complete. Your credit should reach 700 within two years time, giving you the fresh start you’ve been looking to achieve.

Note: In June 2022, the debt limit was increased to $2.75 million for individuals filing for Chapter 13 bankruptcy. Both secured and unsecured debt now count toward the single limit. These changes make Chapter 13 accessible to more people.

Protecting Property With Bankruptcy

When faced with overwhelming debts, bankruptcy is a legal framework that safeguards your assets, preventing creditors from seizing or liquidating your home, vehicle and other valuable possessions. This is one of the most powerful aspects of bankruptcy as it offers individuals the opportunity to rebuild their financial standing without the fear of losing everything they own.

Additionally, the safeguarding of property through bankruptcy promotes economic stability while encouraging entrepreneurship. When individuals have the confidence of knowing their assets are protected, they are more likely to pursue new business ventures and innovative ideas that can contribute to overall societal advancements and economic growth.

How Bankruptcy Affects Credit Scores

Bankruptcy will be on the credit report for 7-10 years, it will not necessarily take that long to rebuild credit. Your credit score should be 700 two years after completing the bankruptcy. Many individuals can start to rebuild their credit soon after filing for bankruptcy by securing new credit, making payments on time, and keeping balances low. It’s always a good idea to work with an experienced bankruptcy attorney, who can provide professional guidance for the most effective ways to rebuild your credit.

Bankruptcy Can Help Fix Your Financial Woes

The greatest advantage of bankruptcy is the opportunity to discharge the majority of your unsecured debt. The court will typically grant a discharge as soon as possible. Chapter 7 bankruptcies generally take about three to four months from the time the bankruptcy petition is filed, while a Chapter 13 bankruptcy discharge is issued after the debtor completes all payments under the plan, which is 3-5 years

In addition, filing for bankruptcy can help put an end to the harassment of creditors with their non-stop calls and scare tactics. According to United States bankruptcy law, a debtor who has declared bankruptcy is immediately granted an automatic stay. This means that creditors must halt all attempts to collect debts.

Bankruptcy also takes life’s circumstantial changes into account. So if you lose your job or suffer an injury, the bankruptcy system offers the advantage of being able to request a repayment plan of your secured claims. Secured claims are claims for debts that are secured by an interest in property. A secured creditor can take that property, the collateral, if you default on the debt. So, having the ability to make changes is very important.

Another appealing part of bankruptcy is knowing there are NO tax consequences related to the discharged debt. Compare that to other forms of debt forgiveness where the IRS might claim the amount of debt that was forgiven was income and attempt to tax you on that amount.

These advantages allow you to experience a second chance that is free of financial hardships and judgments. Bankruptcy is not a bad word and neither are the people who file for it.

Affordable Bankruptcy Attorneys

Filing for bankruptcy doesn't have to be expensive. Our Arleta bankruptcy law firm strives to keep costs low. We have developed an extremely efficient process for bankruptcy filing based on 25 years of experience and more than 8,000 cases filed.

The fees for Chapter 7 vary based upon the complexity of the case, but a typical case is $1,000.00 to $1,300.00, not including the filing fee and credit report. You can also set up payment plans.

The up-front fees for Chapter 13 range from $500 up, depending on the case. The balance of the fees is paid through monthly plan payments to the trustee. You will pay the fees over a period of 36 to 60 months.

Our law firm offers a transparent fee structure, and we will provide you with a written statement outlining what you will pay; this amount will not change once you retain us.

Choosing the Right Arleta Bankruptcy Attorney

Once you’ve determined that filing for bankruptcy is the best option, you’ll need to find the right person for the job. Remember that not all bankruptcy attorneys are equally qualified or compassionate. Here are some things to keep in mind when you’re conducting a search for the right Arleta bankruptcy attorney.

It is extremely important to have an attorney who specializes in bankruptcy. Though the last major revision to bankruptcy law was passed in 2005, interpretations of the law are constant so you’ll want someone who knows exactly what they’re doing. Just because a person has the word "attorney" attached to their name does not mean they are experienced or can be trusted to look out for your best interest. Unfortunately, there are people who look to profit from other’s financial struggles.

That’s why it’s important to do your due diligence and search for qualified bankruptcy attorneys in your area. You’ll begin by searching for qualified bankruptcy attorneys in your area. Once you’ve compiled a decent list of names, you’ll want to start vetting them. Read up on their online reviews, take a look at their qualifications, and then schedule calls with your top choices in order to get a better feel for their philosophies, working style, and personality.

When you get the chance to talk with your potential Arleta bankruptcy attorney, you want to ask the questions that matter most. Think of it as an interview, as this person will have the responsibility of protecting your assets and personal belongings, which is an extremely important responsibility.

Bankruptcy laws are complicated, which is why you need someone who specializes in bankruptcy law and understands how it pertains to the Central District of California. An inexperienced attorney may not have the skills or knowledge to properly protect your assets. If they fail to disclose all the required information on your bankruptcy forms, your case could be dismissed.

Here's how to protect yourself when choosing an attorney:

Make sure they have experience in Chapter 7 and 13 bankruptcy and ask to see court dockets or cases they have filed. Meet with the attorney for at least one hour before deciding to retain them. If the attorney refuses to meet with you or only spends a few minutes with you, move on; this is a red flag for future problems.

Ask family, friends, or other trusted professionals for a referral. Check the California State Bar website to see if the attorney has been disciplined or sued.

Always get a plan of action in writing and ask the attorney to explain anything that is unclear or confusing. Never sign anything you don't understand.

You have the right to leave and find another attorney if you feel uncomfortable for any reason.