Saturday, 28 June 2014

Bankruptcy Legal Help Offered By Los Angeles County Bankruptcy Lawyer

By Mark Marabut


Some individuals cannot handle their own finances due to poor spending habits. Some may even use credit to buy food. In many cases, bankruptcy attorneys in Los Angeles County help people to keep from losing their homes.

Most debt is absolved in a Chapter 7 bankruptcy. The individuals are allowed to make a fresh start. There is no excusing certain kinds of debt, however.

Those that cannot be erased include child support, student loans and taxes. The individuals are entitled to keep their home. If they own a second property, they may not keep it.

A car that is considered necessary can also be kept. Debt such as non-secured loans, credit card debt and utilities are excused. A Chapter 7 erases those debts.

The first consultation with a lawyer is a time to determine if the client qualifies to go bankrupt. Some parameters must be met. If the client qualifies, the attorney will make another appointment to fill out paperwork.

The petitioner must bring required information and the lawyer prepares a motion to file in federal court. It is reviewed by a judge. A decision will be made to accept or deny the petition.

If accepted, a retainer is paid to the lawyer for services to be rendered. There is a filing fee paid for court costs. All debt that is eligible is vacated at that time.

Another type is Chapter 13. For many, this is considered a better choice. The debt is paid over an extended period of time. Amounts owed are added up and a repayment plan is prepared. The client must have a job that pays a certain amount. It must be high enough to cover two things. The first is making the payments to the court.

Plus, he must have earnings that will cover living expenses. Food, rent and other necessary things are to be affordable after the legal payments are met. There are specific regulations.

All bankruptcies must be filed in federal court. As soon as the case is approved by a judge, no more interest can be added to the amounts owed. The Chapter 13 allows a number of years to repay every debt.




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