1. Know Your Options
Before you approach a debt relief agency or a Los Angeles bankruptcy attorney, it’s important to understand the difference between Chapter 7 and Chapter 13 bankruptcy. There are different types of bankruptcy you can apply for according to bankruptcy law in LA. Once bankruptcy filing begins, you will be introduced to two bankruptcy cases associated with your financial struggles. Read on about the different chapters of bankruptcy below:
Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy, and it allows you to discharge most of your debts. Chapter 13 bankruptcy is known as reorganization bankruptcy, and this entire process allows you to repay your debts over time with a certain payment plan.
Once you understand the differences between the two types of bankruptcy, you can start to plan your next steps.
If you decide to file for Chapter 7 bankruptcy, you will need to liquidate your important assets in order to pay off your debts. This can be a difficult process but working with a professional can help make it go more smoothly.
If you decide to file for Chapter 13 bankruptcy, you will need to develop a repayment plan that details how you will repay your debts over time. This plan must be approved by the court, and it can be difficult to develop on your own. In the case of overwhelming debt, you can also ask for bankruptcy protection options from your bank to help you with your bankruptcy case.
2. Gather the PaperworkOnce you have chosen the type of bankruptcy that is right for you, the next step is to gather all of the necessary paperwork according to the law. This includes things like your income tax return, bank statements, and creditors list. It is also important to have a well-organized financial statement that lists all of your assets and liabilities. These documents will be used by the bankruptcy court to determine if you are eligible for bankruptcy and how much debt you will be able to discharge.
3. List Down Your DebtsMake a list of your creditors and how much you owe to each one. This will help you determine which debts can be discharged in bankruptcy and which ones you’ll still be responsible for after the bankruptcy is over. Account for the last time you tried to pay bills, file for a loan modification, where you receive a regular income, or incurred some lost wages that are unaccounted for. The right attorney will have the due diligence to help you navigate consumer bankruptcy with your debt in mind, and you may avoid foreclosure and bankruptcy altogether.
4. Talk to a Professional
Speak with a bankruptcy lawyer in LA to get an idea of what to expect and what your options are. Having a bankruptcy attorney by your side is especially important if you have a complex financial situation or significant assets that could be affected by bankruptcy law in Los Angeles, CA.
Once you’ve chosen your bankruptcy lawyer, don’t forget to be as honest with them as possible. Bankruptcy attorneys can’t help you if we don’t know what’s going on. So, it’s important that you paint as clear a picture as possible about your finances and what led to your bankruptcy. A reputable law firm in Los Angeles, CA will likely give you a free consultation as well within a few telephone calls made. They represent clients whose finances are in shambles and just want a fresh start, after all.
5. Get OrganizedStay organized and keep track of all correspondence and court dates throughout the process. This will help ensure that everything is handled in a timely and efficient manner. Many people find themselves struggling with bankruptcy filings at some point in their lives. While it can be difficult to face up to the reality of bankruptcy in Los Angeles, CA, it is often the best solution for those who are overwhelmed by their debts. Every bankruptcy lawyer on our team can help you to navigate the bankruptcy process, making it as smooth and stress-free as possible. We will work with you to develop a personalized plan that takes into account your unique financial situation. We understand that no two bankruptcies are alike, and we will tailor our services to meet your specific needs. Whether you are struggling with credit card debt, medical bills, or other types of debt, we can help you to get your finances back on track.
Talk to Us Today to Learn More
If you’re searching for a bankruptcy lawyer in Los Angeles, the Law Office of R. Grace Rodriguez would be happy to provide you with the assistance you need to navigate the process. Headed by an experienced bankruptcy attorney, we cater to nearby cities in the Los Angeles area and have helped dozens of clients who have been faced with the threat of bankruptcy.
To see our attorneys, you may visit our main office at 21000 Devonshire St #111, Chatsworth, CA 91311, or contact us at 818-734-7223 for a free consultation.