Bankruptcy in Long Beach, CA

Are you facing financial turmoil and considering bankruptcy in Long Beach, CA? The journey to financial freedom can seem daunting. But we’ll walk you through the details and help you get started.

Don’t let the fear of bankruptcy hold you back from a brighter financial future. Find the information and resources below to make informed decisions for a brighter tomorrow.

Types of Bankruptcy in Long Beach, 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 Long Beach, 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.

Cases from Long Beach belong to the U.S. Bankruptcy Court for the Central District of California. This federal court also serves Los Angeles, Riverside, Santa Ana, and Santa Barbara.

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 Long Beach  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.

While Chapter 7 bankruptcy offers a quick way to eliminate unsecured debts, it’s not the only path available. Chapter 13 bankruptcy might work better for those with assets they wish to keep in Long Beach. It offers a way to reorganize debts into a manageable repayment plan without losing property.

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.

Filing for Chapter 11 bankruptcy in California requires following specific procedures. This process includes filing a petition in the U.S. Bankruptcy Court for the Central District of California, complete with financial disclosures and a reorganization plan. Filers must also list their assets and liabilities, income and expenses, contracts, and leases.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Long Beach, 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.

The documentation for Chapter 13 covers everything from asset and liability schedules to income and expense reports. Furthermore, you must provide plans for repaying debts over three to five years. A disclosure statement to inform creditors about the financial plan is also necessary.

The Bankruptcy Process in Long Beach, 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 Long Beach 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.

In California, deciding between two sets of bankruptcy exemptions—state and federal—impacts what assets you can keep. These exemptions cover homes, vehicles, personal items, and retirement funds. The Homestead Exemption, for instance, shields a portion of your home’s equity from creditors. Additionally, the Wildcard Exemption allows for the protection of various assets up to a certain value. Understanding and choosing the right exemptions is vital, often requiring a bankruptcy attorney’s guidance.

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 Long Beach, California Lawyer

Hiring a local bankruptcy lawyer in Long Beach 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 that 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 Long Beach 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!