Huntington Beach, CA Bankruptcy Attorney
Going through financial hardship can be extremely challenging, but it doesn’t have to be the end of the road for you. If you or a loved one is considering bankruptcy, allow us to provide our skill, knowledge, and experience. Our Huntington Beach bankruptcy attorneys can guide you through your entire bankruptcy process.
To learn more about the specific circumstances surrounding your case, call The Bankruptcy Group today at 1-800-920-5351.
Filing for Chapter 7 Bankruptcy in Huntington Beach
Chapter 7 bankruptcy is one of the most common types of consumer bankruptcies. Every year, thousands of debtors file for Chapter 7 throughout the country. The reason why this type of bankruptcy is common is that it can help many debtors find financial relief after a discharge. However, to obtain the benefits of Chapter 7, a debtor must follow a set of requirements.
Chapter 7 bankruptcy – also known as straight or liquidation bankruptcy – requires a debtor to go through what is known as a “means test.” The means test is the first thing bankruptcy courts will look at once you have filed your bankruptcy petition. Through this test, the court will determine whether you have enough income to satisfy your debt. Your income will be analyzed and compared to the state’s median income; if your income is above the state’s median, you won’t be qualified for Chapter 7 and may be referred to Chapter 13 instead, which we will discuss later. However, if your income is below the state’s median income, then you can qualify and keep going through the rest of the bankruptcy process.
Once you qualify, the court will assign a trustee who will be in charge of overseeing your bankruptcy. The court-appointed administrator will then proceed to sell any non-exempt property or “liquidate” it to pay dividends to your creditors. Once this process finishes, the court can grant you a Chapter 7 discharge. This means you will be able to get rid of most or all of your unsecured debt. Unsecured debt refers to debt that is not guaranteed by collateral, such as credit card debt. Our Huntington Beach Chapter 7 attorneys can help you through the entire bankruptcy process.
Filing for Chapter 13 in Huntington Beach
Chapter 13, also known as a repayment plan bankruptcy or wage earner’s plan, is available to those who have enough disposable income to pay their debt to their creditors. In this type of bankruptcy, the debtor develops a repayment plan that can last from three to five years, in which he or she promises to meet the specifications and requirements of the repayment plan. It is absolutely critical that you comply with all the provisions contained in your plan. If you miss a payment or in any other way fail to meet the plan’s requirements, your Chapter 13 process may be dismissed altogether.
Keep in mind that Chapter 13 is not available to debtors with an excessive amount of debt. This means you may be eligible for Chapter 13 if your unsecured debt totals less than $394,725 and your secured debt (debt secured by collateral) is below the $1,184,200 mark. If your debt is above these thresholds set forth by law, then you likely will not qualify for Chapter 13, and you may need to explore other alternatives. Our Huntington beach Chapter 13 bankruptcy attorneys can help you throughout your bankruptcy process.
What Are the Benefits of Filing for Bankruptcy?
There is a generalized misconception surrounding bankruptcy. Many people think that going for bankruptcy means you will lose all your assets and will likely end up on the streets. However, nothing distances itself from the truth more than this thought. Bankruptcy can not only help you manage excessive amounts of debt, giving you’re a fresh financial start, but it can also protect you and your family.
When you file for bankruptcy, you obtain the relief of what is known as an “automatic stay.” This legal tool is available to those who file for bankruptcy, and it remains in effect while their bankruptcy process is underway. The automatic stay helps debtors protect themselves and their homes against creditors. This means your creditors cannot exercise any collection actions or initiate a foreclosure against you through the remainder of your bankruptcy. Our knowledgeable bankruptcy lawyers can help you understand how the automatic stay works and how it can help you during bankruptcy.
Huntington Beach, California, Bankruptcy Lawyers Offering Free Consultations
If you or a loved one is facing financial hardship and considering a bankruptcy petition, our Huntington Beach bankruptcy attorneys can help. Thanks to our experience in handling thousands of bankruptcy cases over the years, we are able to provide high-quality bankruptcy guidance to all of our clients. To learn more about your case in a free, confidential consultation, call The Bankruptcy Group today at 1-800-920-5351.