Going Through Bankruptcy in Chatsworth: 5 Things You Need To Know

It’s been a trying few years not just for Americans, but also for many people all over the world. COVID-19 has necessitated significant adjustments in many people’s lives. Chatsworth is no exception.

Many people are afraid of going through bankruptcy in Chatsworth, but you shouldn’t be! Instead of viewing it as a dead-end, consider it a clean slate for your money. There are several chapters of bankruptcy to choose from. We’ll go through each of the most popular ones to help you determine which one is best for your current situation.

Chapter 7

Your debts are completely erased in Chapter 7. This is the form to use if your daily living expenses (such as rent, food, and utilities) become too expensive to pay. You’ve also accumulated a lot of debt that you can’t possibly repay based on your current revenue and savings. 

Before you get approved for Chapter 7, you need to pass the Means Test as required by the new 2005 bankruptcy law. As a Chatsworth citizen, you can file for Chapter 7 if there are mounting medical bills, credit card or store debts, and other unsecured debts (e.g., child support, taxes, government fines) you need to pay for. 

As we mentioned earlier, Chapter 7 gives you the legal go-signal to forego your debts. This is not the type of bankruptcy to file if you’re trying to get “caught up” with your secured debts in Chatsworth. 

Take note of this: when you file for Chapter 7, your trustee (or the person in charge of overseeing your finances) will take a look at your assets to gauge which ones can be used to pay back your creditors. These assets are called “non-exempt” assets. 

However, the majority of Chapter 7 instances are labeled as “no asset” situations, implying that your trustee believes there is nothing to give to pay off the debt. As a result, you have a slim possibility of losing your Chatsworth possessions.

Chapter 13

Chapter 13 bankruptcy is designed for those who are still making more than what they owe and/or have assets they would like to protect from their creditors. 

Instead of a clean slate, Chapter 13  helps you come up with a planned payment system to resolve your debts over the course of three to five years. Chapter 13 will look different from debtor to debtor, because your trustee will take into account your net income, the value of your non-exempt assets, and other pertinent details when coming up with your payment plan.

If you’re behind on your mortgage or other kinds of secured debts, then Chapter 13 is the option for you. If you are facing foreclosure, Chapter 13 can help you keep control over your Chatsworth property by offering a planned payment scheme to appease your creditor.

 How to Pay Debt in Chatsworth

  1. File for Bankruptcy

The first thing you can do is to file for bankruptcy. This gives you the chance to figure out a solution to resolve your debts.

2. Talk to Your Creditors

It’s worth a shot talking to your creditors. If you’ve fallen behind on your mortgage, your creditors might be open to a negotiation.

3. Contact a Bankruptcy Lawyer in Chatsworth

Finally, it’s a good idea to consult with a bankruptcy lawyer. They can help you file the right kinds of paperwork and protect your assets.

Talk to Us Today to Learn More

Debt and bankruptcy law is actually one of the most difficult and complex areas of law. This is why you need to find a reputable lawyer to work with in Chatsworth. 

When it comes to debt management in LA, attorneys are good at helping you decide what the best course of action is while making sure your case moves along smoothly. As opposed to debt settlement companies, your bankruptcy attorney will still be there to help with post-bankruptcy discharge violations, like if a creditor attempts to collect a debt that was wiped out by the bankruptcy.

Aside from this, a good bankruptcy lawyer in Los Angeles will also be able to provide you with some useful tips that can help you take advantage of your fresh start and help rebuild credit after bankruptcy.

If you’re in need of help regarding debts and need a qualified bankruptcy lawyer in Chatsworth, then contact The Law Office of R. Grace Rodriguez. We’ll help you through the intricacies of bankruptcy law in LA and find peace from your debt issues. Call us today at (818) 734 – 7223

Contact Us Today

Strategize with an Attorney Today!