Bankruptcy Laws for Los Angeles

In Los Angeles, just like every other area in the country, there are certain requirements that have to be met to file for bankruptcy.  To help you learn a little about the requirements, let’s discuss a couple of items.  To qualify for Chapter 13, for example, you will need to have regular income that is sufficient to leave you some money after you have paid your living expenses.  A Chapter 13 is a reorganization, or repayment bankruptcy.  Therefore, it works by consolidating all of your debt into a court-supervised repayment plan.  Chapter 13 does not require you to repay ALL debt, it only requires you to repay unsecured debt based on how much you can afford.  Chapter 7, on the other hand, isn’t a consolidation.  It is known as a “fresh start” bankruptcy because it eliminates debt without repayment.  Let’s look in more detail at some aspects of bankruptcy and how it can help you.

• the benefits of bankruptcy
• the eligibility factor
• how long does it take?

While there are a lot of myths about bankruptcy in the general public and one is likely to hear all sorts of negative comments about bankruptcy, the fact is that bankruptcy is the best, most economical way to address financial problems in society.  First, by law the harassing phone calls and letters from creditors must stop.  In fact, any collection activity must stop upon the filing of your case.  You can prevent wage garnishments, you can prevent foreclosures, you can prevent utility shut-offs, you can stop lawsuits that have been filed against you, and most importantly you can change your obligations to your creditors through filing bankruptcy.

Anyone can qualify for chapter 7 as long as you filing the case wouldn’t be considered an abuse.  An experienced Los Angeles bankruptcy attorney can help you budget and advise you about this issue after reviewing your situation.  You would want to make sure you can protect your property and that the debt you owe can be discharged in bankruptcy, but for chapter 7, there are very few other barriers to filing.  In Chapter 13 bankruptcy, you need steady income that is enough to pay your living expenses and leave you some money left to repay your debt.  Once again, an experienced Los Angeles bankruptcy attorney can help evaluate your case and demonstrate specific benefits in your situation.  It is even possible to file bankruptcy if you filed in the past, but consult with an experienced Los Angeles bankruptcy attorney about the rules.

Bankruptcy relief begins as soon as your case is filed in court.  Depending on the type of bankruptcy, relief from debt can take only a few short months to up to 5 years.  Specifically, Chapter 7 cases typically can be completed within 3-6 months while Chapter 13 reorganizations are 3-5 year payment plans.