Are you unable to pay your credit card bills or past taxes? Are you behind on your mortgage payments? Are you dealing with lawsuits and being threatened with wage garnishments or bank levies? Are you behind on your car payments and have been warned that the car will be repossessed?

Bankruptcy may be the solution to stop the creditor’s action and help you get a fresh start.

Bankruptcy can eliminate your debt and help you get current on your mortgage. The bankruptcy law exists to help you keep your possessions and provide financial freedom. Bankruptcy has helped millions of people who feel trapped by their financial situation and want to get out of “debtor’s prison.”

If you are considering filing bankruptcy, it’s very important to work with an attorney who understands the bankruptcy law and has the experience and the legal expertise to successfully navigate you through the bankruptcy case to completion in the Central District of California. Look for a bankruptcy attorney with an outstanding reputation in the community and a track record of success.

Our Santa Clarita bankruptcy specialists have helped more than 8,000 people successfully file bankruptcy.

Call us today for a free bankruptcy consultation. We will use our 25 years of experience to help you determine whether bankruptcy is right for your situation and to counsel you on all your debt-relief options.

WHAT IS BANKRUPTCY?

Bankruptcy is a legal proceeding under federal law that allows you to eliminate much of your debt.

Since bankruptcy is a federal process, it preempts (overrides) state law and can put an end to many state court lawsuits and collection actions.

Chapters 7 and 13 are the most common types of consumer bankruptcy cases that people file.

CHAPTER 7 BANKRUPTCY

Chapter 7 bankruptcy is for individuals or married couples who are having difficulty paying their bills or who cannot afford to make their monthly payments. It can eliminate many types of debt, including credit card bills, personal loans, old taxes, personal guarantees, repossessions, and medical bills.

Once you file a Chapter 7 case, you are protected by the “automatic stay.” This prohibits creditors from trying to collect money from you. It also stops wage garnishments from your paychecks and bank levies from your bank accounts, and it puts a stop to all lawsuits filed against you.

Under Chapter 7, you can protect your assets, but it is imperative that you speak to an experienced bankruptcy attorney to make sure your assets are protected. There is no repayment plan involved, which makes Chapter 7 the fastest path through bankruptcy. From start to finish, the process takes around four to six months.

Once your debt is discharged under a Chapter 7, you can get a fresh start and rebuild your financial profile.

Your house is protected in a Chapter 7 bankruptcy if you have less than $626,400 in equity in your property. It is important to speak to an experienced attorney to make sure your property is protected.

CHAPTER 13 BANKRUPTCY

Chapter 13 bankruptcy allows you to repay your debts over a period of three to five years. It’s a good alternative if you do not qualify for a Chapter 7 bankruptcy due to high income that precludes you from filing Chapter 7 or if you want to protect and keep your property. It’s also an option if you filed a Chapter 7 in the last eight years.

Chapter 13 is called the “home saver bankruptcy” because it stops the foreclosure process so you can save your home. It allows you to pay back taxes without accruing penalties, and it stops wage garnishments, bank levies, and all lawsuits.

After filing Chapter 13 bankruptcy, you can take a deep breath and catch up on delinquent mortgage and car payments over a period of three to five years.

With the help of your Santa Clarita bankruptcy attorney, the attorney will work with a local Chapter 13 bankruptcy trustee to set up a repayment plan. Unsecured debt like credit card bills, personal loans, and medical bills are included in the repayment plan. Depending on your income and expenses, you may not be required to pay these debts at all. Many Chapter 13 filers end up paying nothing or pennies on the dollar for their unsecured debts.

Once your debts are discharged after three to five years, you will have a fresh start.

Note: In June 2022, President Biden signed bill S3823 into law, increasing the debt limit to $2.75 million for individuals filing for Chapter 13 bankruptcy. The new law also allows both secured and unsecured debt to count toward the single limit. These changes make Chapter 13 accessible to more people.

BENEFITS OF BANKRUPTCY

Bankruptcy is a financial decision—but also an emotional and psychological one. Many people file for bankruptcy after an unexpected event causes them to go into debt, such as divorce, job loss, inflation, or illness.

Some people file when they are $5,000, $10,000, or $500,000 in debt. There is no specific dollar amount that dictates when a person should file; it is up to each individual. Also, it does not matter if an individual is current with their debt payments or has not made a payment in years.

Everyone deserves a fresh start. No one should go to sleep at night worrying about how they will pay their debt. Bankruptcy may be the right option if you want to:

Eliminate credit card debt, old taxes, personal loans, and personal guarantees.

Stop lawsuits, wage garnishments, and bank levies.

Stop harassing creditor calls.

Stop car repossession and foreclosure of your home.

Some debts cannot be discharged in bankruptcy, so you should speak with an experienced Santa Clarita bankruptcy attorney to determine if filing is right for you.

CHOOSING THE RIGHT ATTORNEY

Just because a person has the word “attorney” attached to their name, it does not mean they are experienced or can be trusted to look out for your best interest. Follow these tips to ensure you choose the right bankruptcy attorney in Santa Clarita:

Make sure the attorney has 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 and the rest of your meeting is with a paralegal, 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.

Read online testimonials and reviews of the attorney.

If you decide to retain the attorney, get a plan of action in writing. Don’t sign anything you don’t understand. Always get clarification. If you feel uncomfortable for any reason, you have the right to leave and find another attorney you feel is honest and forthright.

WHAT IS THE BANKRUPTCY PROCESS?

The process starts by having a free in-person or phone consultation with attorney Kevin Simon. Your Santa Clarita bankruptcy attorney will listen to your financial situation and advise if bankruptcy is the right option for you.

If you decide bankruptcy is the right choice, Kevin Simon will guide you to the appropriate bankruptcy chapter to file.

Once your bankruptcy paperwork is filed with the court, a bankruptcy trustee will be assigned to your case. Our firm works with the trustee, and we oversee the entire process from start to finish.

The Law Offices of Kevin Simon has a very good relationship with all the local trustees. This makes it much easier to work with them and provides huge benefits to our clients.