Encino Bankruptcy Attorney
If you want to eliminate your credit card debt, medical bills, and other debts and put a stop to creditor harassment, wage garnishment or foreclosure, bankruptcy could be a good debt relief option for you. Nobody wants to think about having to file for bankruptcy, but for many financially distressed individuals in Encino, a Chapter 7, Chapter 11 or Chapter 13 bankruptcy filing is a better alternative to continuing to struggle with overwhelming debt. If you owe more than you can afford to pay and you think filing for bankruptcy may be the right choice for the good of your financial future, don’t hesitate to seek qualified legal representation. Our knowledgeable bankruptcy attorneys at Resnik Hayes Moradi LLC have helped thousands of clients in Southern California eliminate or reorganize their debts and get their finances back on track, and we can help you find the right solution for your specific situation. Contact our law firm today to schedule a free initial bankruptcy consultation with our team of accomplished Encino bankruptcy attorneys.
Knowledgeable Encino Bankruptcy Attorneys
Many people think that if they file for bankruptcy in Encino, they will have to give up their home and sacrifice their assets, which is why bankruptcy is typically considered a last resort for debt relief, but that is not necessarily the way bankruptcy works. With the help of our skilled Encino bankruptcy attorneys, you may be able to file for bankruptcy and stop the harassing creditor calls, debt collection lawsuits, wage garnishment, and foreclosure proceedings, while keeping your home, your car and other property. Our attorneys at Resnik Hayes Moradi LLP have handled thousands of bankruptcy cases in Encino and the surrounding area, and we have the resources and experience to help you find the right solution based on your individual circumstances, whether that means filing for bankruptcy or finding a more favorable alternative to bankruptcy. Bankruptcy can be a long and complicated process and you should only make the decision to file for Chapter 7, Chapter 13 or Chapter 11 bankruptcy after consulting a skilled Encino bankruptcy attorney.
Whether you are facing what seems like insurmountable credit card debt, a mortgage in default, debt from medical bills, a car loan you can’t afford to pay, or a home that is underwater, there are a number of options available to you that can help you obtain real debt relief, including bankruptcy. Bankruptcy is the legal process by which individuals in Encino who cannot afford to repay the debts they owe to creditors can seek relief from all or a portion of their outstanding debt. An Encino bankruptcy case begins when a bankruptcy petition is filed, usually by a debtor seeking relief from debts he or she cannot afford to pay, and the goal of a bankruptcy petition is for the debtor to obtain a discharge of debts. When a debt is discharged, the debtor is no longer responsible for repaying the debt and the creditor is no longer permitted to pursue collection actions against the debtor in an effort to collect payment on the debt. Determining whether a bankruptcy filing is appropriate in your particular situation and if it is, which bankruptcy chapter best suits your needs, depends on a number of factors, including your income, your debts and assets, your current expenses and the nature of the assets you wish to protect.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as liquidation bankruptcy, and the thought of liquidating, or selling, your assets to pay back your creditors can be disheartening enough to avoid this type of bankruptcy filing altogether. However, filing for Chapter 7 bankruptcy in Encino does not mean you will lose all of your assets. In fact, many individuals who seek bankruptcy protection under Chapter 7 are able to keep their home, car and other assets, while wiping out their medical bills, credit card debt and other dischargeable debt, thereby freeing up some cash to make any past-due payments on their mortgage or car loan. Chapter 7 bankruptcy is a powerful debt relief tool that can give you the fresh start you need to finally take control of your debt and achieve the financial freedom you deserve.
Chapter 13 Bankruptcy
Individuals in Encino who have regular income and want to repay their debts, but are currently unable to do so, may choose to file for bankruptcy protection under Chapter 13, which restructures these debts into a more manageable repayment plan. Under a Chapter 13 repayment plan, which can last between three and five years, debtors typically repay only a portion of what they owe to creditors, and at the end of the plan, their remaining dischargeable debts are eliminated, meaning they are no longer legally obligated to pay the debts back. There are certain debt limits that go along with Chapter 13 bankruptcy, so consulting a qualified bankruptcy attorney is your best bet for determining whether you qualify for bankruptcy under this chapter.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy, also known as debt reorganization bankruptcy, is similar to Chapter 13 bankruptcy, but with a few important differences. Both types of bankruptcy allow debtors to propose a debt reorganization plan, but with Chapter 11 bankruptcy, creditors can vote against the plan and propose their own. Additionally, while Chapter 13 bankruptcy establishes strict debt limits for eligibility, Chapter 11 does not. Chapter 11 bankruptcy was originally intended for businesses, but individuals can now seek bankruptcy protection under Chapter 11 as well.
Benefits of Filing for Bankruptcy
If you are struggling to pay back the debts you owe to creditors, you have probably started receiving harassing phone calls or threatening collection letters from creditors attempting to collect on the debts you owe. Or perhaps part of your paycheck from work is being withheld and sent directly to your creditors, a process known as wage garnishment. Creditor harassment, wage garnishment, and debt collection lawsuits are some of the most devastating consequences of struggling with overwhelming debt and are also some of the biggest motivators for debtors to declare bankruptcy and discharge or pay back their debts. That is because when you file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy in Encino, what is known as an “automatic stay” goes into immediate effect. This stay is an injunction that prohibits most collection efforts by creditors, including harassing or threatening phone calls, debt collection lawsuits, and wage garnishment actions. The automatic stay can also stop the eviction, repossession and foreclosure proceedings and many people in Encino declare bankruptcy for this specific reason – to avoid a foreclosure on their property.
If you are considering filing for bankruptcy, you are probably wondering what assets you can “exempt” under bankruptcy law in California. When a bankruptcy case is filed in Encino, the debtor is entitled to protect certain exempt property, and generally speaking, the more property you can claim as exempt, the better off you are financially. In California, there are two different sets of exemptions and the exemptions from these two lists cannot be combined. In order to get the most out of your bankruptcy exemptions and protect as much of your property as possible, it is always a good idea to contact a reputable Encino bankruptcy attorney before beginning the exemption planning process.
What Debts are Non-Dischargeable?
Filing for bankruptcy can help you get rid of overwhelming dischargeable debts like credit card debt and medical bills, but there are certain types of debts that are not dischargeable in bankruptcy. Some examples of non-dischargeable debts in an Encino bankruptcy filing include the following:
- Recent income tax debts
- Student loans
- Debts for personal injury or wrongful death related to driving under the influence offense
- Past-due alimony, child support, and other domestic support payment obligations
- Fines for traffic tickets
- Criminal restitution payments
If you have debts that fall into the non-dischargeable category, you will still be responsible for repaying the debts even if you declare bankruptcy and have your dischargeable debts eliminated. Additionally, if you intend to keep your house and car through the bankruptcy process, you will also be required to continue paying your mortgage and car loan payments.
The Effect of Bankruptcy on Your Credit
Many people in Encino opt for a bankruptcy filing as an alternative to foreclosure after they have fallen behind on their mortgage payments, and while filing for bankruptcy can adversely affect your credit rating, the impact isn’t nearly as severe as the impact associated with a foreclosure. When you declare bankruptcy under Chapter 7, for instance, the bankruptcy filing will stay on your credit report for up to ten years, but even that is a more favorable alternative to the havoc that missed payments, judgment liens, mounting debts, and foreclosure can wreak on your credit score. And, with the majority of your debts discharged in bankruptcy, you can get back on your feet financially and start rebuilding your credit sooner. Even considering the long-term credit consequences of bankruptcy, filing for bankruptcy is still the best debt relief solution for many individuals in Encino who want to work towards a debt-free future without paying back all of what they owe.
How Our Encino Bankruptcy Attorneys Can Help
Bankruptcy law can be incredibly complex and confusing, especially if you have significant assets you want to protect, and depending on the type of bankruptcy you file, the process can take anywhere from a few months to several years, which is why it is important to learn everything you can about the process before deciding whether bankruptcy is right for you. Even with the most complicated bankruptcy case, if the bankruptcy filing is handled by a professional, the process will be much faster and smoother than if you were to attempt to file for bankruptcy on your own. Our Encino bankruptcy attorneys at Resnik Hayes Moradi LLP have been representing clients in bankruptcy cases in Southern California for years, and we know what it takes to get a client’s debts discharged.
There are many myths out there about bankruptcy that have kept individuals in Encino and throughout Southern California from declaring bankruptcy and obtaining real debt relief, including the myth that filing for bankruptcy means the bank will come and take all of your possessions. In reality, our bankruptcy attorneys can keep you from losing your home, your car and most of your other possessions after filing for bankruptcy; all you have to do is call. We know that there is a certain stigma associated with bankruptcy and we understand that filing for bankruptcy can feel a lot like giving up, but we also know how many families in Encino and throughout Southern California have been able to eliminate their debt and achieve financial freedom because of bankruptcy.
Our partners at Resnik Hayes Moradi LLP are board-certified bankruptcy specialists, but our legal team has experience handling all types of debt relief cases in Encino. So, if filing for bankruptcy isn’t the right solution for you, we will ensure that you are made aware of the other options available to you for dealing with your debilitating debt. Whatever debt-related problem you are facing, we can help you find the relief you are looking for.
Contact Our Bankruptcy Attorneys Today
Filing for bankruptcy is one of the most important decisions a person faced with overwhelming debt can make, and every Encino bankruptcy case is different, which is why consulting a knowledgeable attorney is the very first step you should take when considering a bankruptcy filing. At Resnik Hayes Moradi LLP, we offer a free initial consultation, so you can discuss your case with our legal team and make an informed decision about whether bankruptcy is your best course of action, with no obligation to hire our firm. If you are having a hard time making your mortgage payments, or if you are drowning in unpayable debt, contact our seasoned Encino bankruptcy attorneys today to take advantage of our extensive skill and expertise. We have experience handling all types of bankruptcy cases in Encino and throughout Southern California, and we can help you obtain long-lasting relief from debt.