Bankruptcy in Fresno, CA
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Fresno, California? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.
Types of Bankruptcy in Fresno, California
Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Fresno, CA to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.
Fresno bankruptcies are under the jurisdiction of the US Bankruptcy Court, Eastern District of California. Filings are typically done at the Robert E. Coyle US Courthouse in downtown Fresno.
Chapter 7 Bankruptcy
Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Fresno who can help you to decide if a liquidation plan is right for you.
Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.
In Fresno, debtors must complete an approved Credit Counseling Course before filing for Chapter 7 Bankruptcy. The US Department of Justice provides a list of these courses that have been approved by the US Trustee Program. Additionally, the debtor must file a variety of documents, including the Voluntary Petition for Individuals Filing for Bankruptcy. Keep in mind, if all documents are not properly filed, you could lose the benefit of an automatic stay of debt collection. This makes consulting with an experienced Fresno bankruptcy attorney all the more essential.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.
In Fresno, creditors are allowed to vote whether or not they will accept your Chapter 11 Debt Reorganization Plan. The Plan must then be approved by the Court. Keep in mind, failing to file all forms properly may result in your case being dismissed.
Some of the forms you must file for Chapter 11 include:
- Voluntary Petition for Individuals Filing for Bankruptcy
- Statement About Your Social Security Numbers
- Chapter 11 Statement of Your Current Monthly Income
- Verification of Master Mailing List of Creditors
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Fresno, CA after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.
Filing for Chapter 13 in Fresno can start with completing a Voluntary Petition for Individuals Filing for Bankruptcy. You must also pay filing fees, typically $313 if it is a new petition, and $235 if you are reopening a case. You will also need to submit a debt repayment plan within 14 days of filing the Petition.
Other forms that are required to be filed include:
- Master Mailing List of Creditors
- Statement About Your Social Security Numbers
- Certificate of Credit Counseling
The Bankruptcy Process in Fresno, California
There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.
In Fresno to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.
Under California Code, Fresno property owners can find exemptions from bankruptcy. As of January 2021, the amount of the California homestead exemption runs from $300,000 to as much as $600,000. The amount depends on the countywide median sale price for a single-family home in the year prior to the year in which you claim the exemption. However, starting in January 2022, these exemption amounts will be adjusted annually for inflation.
At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.
Work With an Experienced Fresno, California Lawyer
Hiring a local bankruptcy lawyer in Fresno during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can be discharged or can’t be discharged. An experienced California attorney can also offer you guidance to improve the outcome of your case.
Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Fresno can guide you through the entire bankruptcy process. We can even help you connect with an attorney across California state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!