Bankruptcy Law

Stop Creditor Harassment

Posted on by Los Angeles Bankruptcy Lawyer

Debt Relief

Will Filing For Bankruptcy Stop Creditor Harassment?

Having debt can be beneficial and detrimental depending on how you manage it. Having some debt gives you the freedom to build your credit standing, while having more debt than you can afford could be detrimental to your livelihood. When debt begins to pile up, creditors may start attempting to collect on what is owed. One phone call can quickly turn into several daily and the occasional letter can evolve into a weekly occurrence.

Some families think if they ignore the issue, the creditors will stop calling – they won’t.

Continue reading →

Chapter 7 Bankruptcy Exemptions

Posted on by Los Angeles Bankruptcy Lawyer

Chapter 7 Bankruptcy Exemptions

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is one of the most common bankruptcies filed in the United States today. Chapter 7 is often referred to as the liquidation bankruptcy because your non-exempt assets are sold (liquidated) by a bankruptcy trustee, with the proceeds (money) being distributed among creditors in order of highest priority to lowest.

Chapter 7 is often the quickest and simplest form of bankruptcy and is available to just about anyone including: Married couples, individuals, and corporations. When a person is considering filing for Chapter 7 bankruptcy the first thing that is often on their mind is the amount of property and assets they will be able to keep.

This largely depends on what types of property that individual owns, how much that property is worth, and the bankruptcy exemptions available for that specific case.

Continue reading →

What is a Ch 7 Bankruptcy Discharge?

Posted on by Los Angeles Bankruptcy Lawyer

Chapter 7 Bankruptcy Debt

What is a Ch 7 Bankruptcy Discharge?

A Chapter 7 Bankruptcy discharge is a process where the debtor is released from personal liability for specified types of debts.

What does this mean?

The debtor is no longer legally required to pay any debts that have been discharged. The debt discharge is an order declaring that the creditors can no longer attempt to collect on any debts that have been discharged through the bankruptcy proceedings. This means, phone calls, letters, and even e-mails with the debtor are prohibited.

Continue reading →

Understanding Debt to Income Ratio

Posted on by Los Angeles Bankruptcy Lawyer

Debt to Income Ratio

Are you looking to get a better picture of your current financial standing? Calculating your debt-to-income ratio is a great way to monitor your personal finances, and to gain insight to what lenders are analyzing when considering your credit status.

What is a debt to income ratio?

The debt-to-income ratio compares your gross monthly income to the amount of debt (there are some exclusions to deb included such as monthly rent when you do not own your home) you currently owe. Your debt to income ratio can be figured easily if done on a monthly basis.

Continue reading →

Bankruptcy Alternatives: Debt Consolidation

Posted on by Los Angeles Bankruptcy Lawyer

Debt Consolidation Los Angeles Bankruptcy Attorney

What is debt consolidation?

Debt consolidation is a term used when a person combines (consolidates) multiple debts into one, easier to manage, payment.

Usually the consolidation process is accomplished in one of two ways: (1) taking out a personal loan, and paying all or the majority of your debt off, or (2) by using a credit counseling service who negotiates a discount of the debt with each of your creditors for you. Both options have their own benefits and drawbacks.

Continue reading →

Common Bankruptcy Questions About Creditors

Posted on by Los Angeles Bankruptcy Lawyer

LA Bankruptcy FAQ and Bankruptcy Attorneys

A creditor has demanded payment after I have filed for bankruptcy, what can I do?

This is where the automatic stay protects the debtor. An automatic stay is a process in bankruptcy law that halts actions by creditors (with certain exceptions) to collect debts from an individual who has declared bankruptcy. If a creditor attempts to repossess your property without the permission of the bankruptcy court, after your case has been filed, it becomes a violation of the automatic stay. If a creditor takes possession of property you own (a vehicle for example), they must return it immediately.

The court has the ability to punish creditors who deliberately violate the automatic stay and the creditor is liable to the debtor for harm caused!

Continue reading →

Los Angeles Bankruptcy Conversion Basics

Posted on by Los Angeles Bankruptcy Lawyer

Los Angeles bankruptcy conversions

Can I Convert From One Bankruptcy To Another?

Yes.

One of the first considerations a person must make when deciding to file for bankruptcy is which specific chapter they wish to file under. A problem that sometimes occurs is when a debtor has filed for one type of bankruptcy, but under unforeseen circumstances must convert to another bankruptcy. This is called a bankruptcy conversion.

Continue reading →

Secured Vs Unsecured Debt

Posted on by Los Angeles Bankruptcy Lawyer

Bankruptcy for Secured and Unsecured Loans

Filing Bankruptcy Can Discharge Secured and Unsecured Loans

Before a lender makes the decision to loan money to an individual, they must evaluate a consumer’s credit history. Once the preliminary screening has been done, the lender has a choice to lend to consumers under two main categories: secured and unsecured debt. It is important to understand the differences between secured and unsecured debt if you are planning on applying for a loan, or filing for bankruptcy, so you can understand what financial options are available to you.

Continue reading →