When an individual is facing levels of debt and is unable to repay due to financial hardships, filing for bankruptcy may allow for repayment relief. The two most common types of bankruptcy filings include:
Chapter 7 Bankruptcy in CA – A Chapter 7 bankruptcy filing discharges all debts completely. With a Chapter 7 filing, an individual may choose to keep a home or car and continue to make payments according to their financial commitments.
Chapter 13 Bankruptcy in CA – With a Chapter 13 bankruptcy filing, one agrees to pay his/her debts through a repayment plan. That plan may reduce the amount of interest owed over time.
After making a bankruptcy filing, there is an “automatic stay” in effect for the individual filing. During an automatic stay, debtors legally, cannot repossess an automobile, foreclose on a home, garnish employment wages or evict an individual from his/her home. Filing for bankruptcy can ease financial burden for an individual by eliminating overwhelming credit card debt, helping an individual reorganize debts according to financial standing and provide general relief during a period of financial crisis. Unpaid debts that cannot be eliminated by filing for bankruptcy include child support, alimony and tax debt payments. Regarding student loans, one needs to prove that payments are a burden following a bankruptcy filing before financial obligations are discharged.
The Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005
Following the passing of the Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005, the requirements before one can file for bankruptcy include the following:
- In certain cases, credit counseling is required before an individual can file for bankruptcy;
- Debtors who do not fall behind the state median income and can clearly pay back some of his/her outstanding debt are required to do so; and
- After one bankruptcy filing, a waiting period of eight years is required before an individual can make another bankruptcy filing.
Stop Worrying About Your Debt
Luftman, Heck and Associates will be with you through every step of your bankruptcy. Financial debt is a stressful problem and can cause other problems such as marital tension, health issues and stress on the job. Call us today at (619) 400-4900 and let us help you.
The Luftman, Heck and Associates Advantage
We at Luftman, Heck and Associates understand the emotional and financial strains of financial debt and the impact it can have on other areas of your life. We will be with you at every step of your bankruptcy, and help ensure that you receive the fairness you deserve throughout your bankruptcy filing. Our firm has great experience guiding clients through bankruptcy filings, and will always strive for the best possible outcome on your behalf.
Ready to Learn More About Bankruptcy Filing?
If you or a loved one are in need of legal representation for a bankruptcy filing and interested in learning more about Luftman, Heck and Associates LLP, please fill out a Contact Form. A member of the firm will contact you directly to discuss your case in more detail and provide additional information about our bankruptcy filing services.