1. Filing chapter 7 bankruptcy in Long Beach CA allows for the “discharge” of most, if not all of your debts. Meaning that you are no longer legally obligated to pay the debts and your creditors must immediately stop all collection efforts. Talk to a bankruptcy attorney in Los Angeles for free today, call our office and learn the facts about filing for bankruptcy in Long Beach.

2. Both chapter 7 and chapter 13 bankruptcies in Long Beach prevents real property from being repossessed and halts the home foreclosure process. A chapter 13 bankruptcy plan will consolidate all your payments and allow you to reinstate your loan while a chapter 7 may be a better choice if your 1st mortgage is current.  Additionally, filing bankruptcy may require creditors to return property that was repossessed immediately.

3. Both chapter 7 and chapter 13 in Long Beach CA stop the collection process and halts harassing creditor collection calls. This means that creditors must stop attempting to collect on the debts after being notified of bankruptcy filing. If they continue you can sue them. Contact a Long Beach bankruptcy attorney today to discover your rights under bankruptcy protection.

4. Prevents you from your utilities being shut off if you have delinquent utility bills. If your utilities have been turned off, filing for bankruptcy protection requires the utility company to restore services as soon as possible.

5. Stops/Prevents wage garnishments. If you file bankruptcy your employer will not be able to garnish your pay check.

6. If you are in the foreclosure process or have a trustee sale date filing bankruptcy will stop the foreclosure process and gives you time to catch up on mortgage payments if needed. This means you will not necessarily have to lose your home.

7. Filing bankruptcy in Long Beach CA will give you an opportunity to dispute false claims from creditors who may be trying to collect more than what it owed to them. You and your bankruptcy attorney will have your day in court to dispute erroneous collection fees.

8. Filing chapter 13 in Long Beach CA will allow you to strip a 2nd mortgage lien and liability if your property value is under water. Chapter 7 will eliminate your personal liability on a 2nd mortgage but the lien will remain on the property. Your bankruptcy attorney must file a motion to strip the lien in a chapter 13.

While bankruptcy in Long Beach CA will allow for the discharge of a number of debts, others remain non-dischargeable according to federal regulation. Non-dischargeable debts include family support, student loans, certain types of taxes, and criminal fines. Liens, mortgages, and other secured debts will also survive bankruptcy procedures seeing as how they are secured by either some sort of collateral or by the federal government. Speak to a Long Beach bankruptcy attorney today.

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The required assets list that one should have for filing a Chapter 11 bankruptcy filing form are things like assets, liabilities & the detailed financial statements. The Debtors in possession, commonly known as filers have the freedom to appoint trustees of their choice and the property they credited as debt remains theirs after the debt has been cleared. If the bankruptcy court feels that fraud, mismanagement, and/or misrepresentation of the financial standing of company can occur, and then it could appoint an outside trustee as well. The court can even appoint a trustee from its own if the case turns out to be too complex and management of the assets is at stake. If there is no need for extreme measures, an examiner can be appointed who gets in charge of managing the interest of the creditor as well as the debtor. For more information regrading a Los Angeles Chapter 11 bankruptcy, speak to a bankruptcy attorney in Los Angeles.

The debts that need to be paid in full and the debts to be paid in partial amounts or even discharged are decided by the trustee and this forms the first step of the process. Debts like taxes, alimony, fines, child support and government loans are to be paid in full and this is in accordance with the Los Angeles Bankruptcy law. The trustee submits a report to the court that entails a repayment plan after the debts and liabilities are carefully balanced off. The debtor gets notified about the repayment of the debts and how to do it only when the court approves of the report made by the trustee. The creditor is forbidden to extract any debt whatever from the time the trustee submits the petition to the court till the time the report gets approval. By and by, the creditors can have their bit by opposing the report and suggesting changes, post which, the plan would have to be made again and the parties would have to agree on fresh terms. Speak to one of our chapter 11 bankruptcy Los Angeles attorneys to see if you are a candidate for chapter 11 bankruptcy.

The success of the Chapter 11 bankruptcy plan is very low, coming to about 10% in some bad cases. This is because of the inherent design structure of the plan in which the company’s interests as well as assets are opened for sale to the creditors. The primary reason behind this is that organizations that are deep into financial crisis are most likely to be so even if the debt is removed. There are cases abound where the owners left the company for good for the sake of greener pastures and lack of motivation, and the court has to deal with all of this. The reasons given above, although powerful testimonies in themselves are enough to think twice before you opt for a Chapter 11 Bankruptcy in Los Angeles, and its complex too. Therefore, a qualified attorney is an absolute must. The Law Offices of Zhou and Chini are the primary places to visit if one happens to find themselves in a bad economic situation. Thank for visiting our chapter 11 bankruptcy Los Angeles post.

Chapter 7 bankruptcy comes under the liquidation category. It’s called liquidation because the bankruptcy trustee may take and sell (“liquidate”) some of your property to pay back some of your debt. However, you may keep property that is protected (also called “exempt”) under state law. There are several types of reorganization bankruptcies, but Chapter 13 is the most common type for consumers. In Chapter 13 bankruptcy, you keep all of your property, but must make monthly payments over three to five years to repay all or some of your debt.

Both Chapter 7 and Chapter 13 bankruptcy have many rules — and exceptions to those rules — regarding which debts are covered, who can file, and what property you can and cannot keep.

Repayment. When you file for Chapter 13 bankruptcy, you must propose a repayment plan that details how you are going to pay back your debts over the next three to five years. The minimum amount you’ll have to repay depends on how much you earn, how much you owe, and how much your unsecured creditors would have received if you’d filed for Chapter 7 bankruptcy.

Debt limits. Your debts must be within limits set by the federal government: Currently, you may not have more than $1,010, 650 in secured debt and $336,900 in unsecured debt.

Secured debts. If you have secured debts, Chapter 13 gives you an option to make up missed payments to avoid repossession or foreclosure. You can include these past due amounts in your repayment plan and make them up over time.

Property liquidation. In Chapter 7 bankruptcy, some of your property may be sold to pay down your debt. In return, most or all of your unsecured debts (that is, debts for which collateral has not been pledged) will be erased. You get to keep any property that is classified as exempt under the state or federal laws available to you (such as your clothes, car, and household furnishings). Many debtors who file for Chapter 7 bankruptcy are pleased to learn that all of their property is exempt.

Secured debt. If you owe money on a secured debt (for example, a car loan for which the car is pledged as a guarantee of payment), you have a choice of allowing the creditor to repossess the property; continuing your payments on the property under the contract (if the lender agrees); or paying the creditor a lump sum amount equal to the current replacement value of the property. Some types of secured debts can be eliminated in Chapter 7 bankruptcy.

Eligibility for Chapter 7. Not everyone can file for Chapter 7 bankruptcy. For example, if your disposable income is sufficient to fund a Chapter 13 repayment plan — after subtracting certain allowed expenses and monthly payments for certain debts — you won’t be allowed to use Chapter 7 bankruptcy.

Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.

Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. A prudent debtor can shop around for consolidators who will pass along some of the savings. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully.

Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest.

Debt settlement is often confused with debt consolidation. In debt consolidation, the consumer makes monthly payments to the debt consolidator, who takes a small fee and passes the rest on to the creditors; this way, creditors continue to receive payments each month. In debt settlement, the consumer makes monthly payments, out of which the debt settlement company takes its fees; the remainder is put into a “trust” or “special purpose” account. The creditors get nothing until they decide to settle. Furthermore, the debt settlement company usually instructs the consumer not to make any payments to creditors. The intended effect is to scare creditors into settling the debt for less than the full amount. Typically, however, creditors simply begin collection procedures, which can include filing suit against the consumer in court. As long as consumers continue to make minimum monthly payments, creditors will not negotiate a reduced balance. However, when payments stop, balances continue to grow because of late fees and ongoing interest.

Consumers can arrange their own settlements by using advice found on web sites, hire a lawyer to act for them, or use debt settlement companies. In a New York Times article Cyndi Geerdes, an associate professor at the University of Illinois law school, states “Done correctly, (debt settlement) can absolutely help people”. However, some settlement companies may charge a large fee up front; or take a monthly fee from customer bank accounts for their service, possibly reducing the incentive to settle with creditors quickly. One expert advises consumers to look for companies that charge only after a settlement is made, and charge about 20 percent of the amount by which the outstanding balance is reduced.