Compassionate Bankruptcy Lawyers To Guide You To A Fresh Financial Start


Financial difficulty is a stressful problem for a person or family. When your debts overshadow your income, it negatively impacts all aspects of your life. Robbing Peter to pay Paul only works so long and usually gets you deeper in debt. For many people, the best option available is filing for bankruptcy. Unfortunately, misconceptions and fears stop people from seriously considering this option.

Our Huntington Beach, California, bankruptcy attorneys understand the reluctance many people feel. However, many fears could be dispelled over a short, and free, consultation. Once someone understands the benefits of filing for bankruptcy, they begin to see the light at the end of the tunnel.

At The Bankruptcy Group, our attorneys and staff are committed to helping potential filers with the bankruptcy process. By keeping an open line of communication with our clients, our goal is to help them eliminate or reorganize their debt so they could move forward. To discuss your situation and the possible benefits of filing for bankruptcy, call 888-710-4334.

Filing For Bankruptcy In Huntington Beach

Unfortunately, there are many misconceptions surrounding bankruptcy. Some people believe that when you file for bankruptcy, you will lose your assets, including your home and car. Others fear that filing will completely destroy their credit score, making it impossible to obtain a credit card, loan or mortgage.

While there is a kernel of truth in both of the above statements, the benefits of filing for bankruptcy often far outweigh the negative effects. Furthermore, the negative consequences that many people fear are exaggerated or avoidable. For many struggling with a mountain of debt, harassing letters, phone calls, lawsuits, repossessions or wage garnishments, filing for bankruptcy is the best option to find relief. Our knowledgeable Huntington Beach bankruptcy attorneys are available to dispel the myths and misunderstandings surrounding bankruptcy.

When You File for Bankruptcy in Huntington Beach, CA, an Automatic Stay Goes Into Effect

Creditors in California have rights and options when someone defaults on a credit card, personal loan or mortgage. If you miss a monthly car payment, the lender is permitted to repossess the vehicle. When you stop paying your credit card bills, the creditor could obtain a judgment in court and garnish your wages or freeze your bank account. Your mortgage company has the right to foreclose on your home if you miss your mortgage payments.

In nearly every situation, unless you are able to pay what you owe, it might seem that there are no legal means to stop your creditors from exercising their rights. Except, filing for bankruptcy does just that. When you file for bankruptcy, a legal wall is erected protecting you from your creditors. This court injunction, known as an automatic stay, prohibits your creditors from taking any action to collect on your debts, including calls, letters and lawsuits.

By stopping a collection lawsuit or foreclosure, bankruptcy provides filers an opportunity to start taking steps to improve their financial situation. Bankruptcy is a negative dent in your credit report. However, most people considering filing are suffering from poor credit before they speak with an attorney. If you are missing payments or behind on a loan, your credit score will continue to drop if you do nothing. Filing for bankruptcy is often the best first step in obtaining the credit score you want.

Chapter 7 Bankruptcy In Huntington Beach, CA

One of the major fears people have regarding filing for bankruptcy is losing their home, car or personal property. Most internet searches will reveal that a Chapter 7 trustee will take your possessions and sell them to pay your creditors. It is called liquidation bankruptcy. Fortunately, while this fear is technically grounded in reality, Chapter 7 does not work precisely in this way.

The Bankruptcy Code permits filers to protect, or exempt, most of their property. When you file for bankruptcy in Huntington Beach, you have the option to choose between two sets of exemptions. Which set is most beneficial depends on your circumstances. One is primarily used by individuals or couples that own a home, while the other provides more flexibility in protecting other types of property. Our Huntington Beach Chapter 7 bankruptcy attorneys will thoroughly review your assets and income to help determine if Chapter 7 is your best choice.

The advantage of Chapter 7 is that a filer could eliminate the majority of their unsecured debt in a matter of months. Freeing yourself from credit card bills, medical debt, personal loans and other obligations could be the relief you need to significantly improve your financial situation.

It is important to remember that Chapter 7 was designed for people with limited income and resources. Our office will use your household income and expenses to calculate the means test, which is used to determine if your median income qualifies you for Chapter 7. You should not assume that you are not eligible without discussing your specific details with one of our experienced bankruptcy attorneys.

Chapter 13 Bankruptcy In Huntington Beach

Chapter 13 is another option and is beneficial for people who make too much money to file Chapter 7 or are behind in secured debt. One of the principal reasons people file Chapter 13 is to stop a mortgage foreclosure or sheriff’s sale.

When someone files for Chapter 13, they are basically reorganizing their debt. While some obligations could be discharged, the primary advantage is entering into a manageable payment plan. The critical document filed in Chapter 13 is your bankruptcy plan. Through monthly payments to a court-appointed trustee, you could pay your creditors without fear of lawsuits, foreclosures or wage garnishments. For example, if you were seven months behind on your mortgage, you will be permitted to pay the money you are behind over the next 60 months. Chapter 13 cases are complicated. Your plan must comply with the Bankruptcy Code and local rules and regulations. It is vital to have our knowledgeable Huntington Beach Chapter 13 bankruptcy lawyers working on your behalf.

If You Believe You Are Facing A Financial Crisis, Call Our Huntington Beach, CA, Bankruptcy Attorneys

Debt is something few people want to discuss or acknowledge. Unfortunately, doing nothing just heightens the problem. Our Huntington Beach, California, bankruptcy attorneys are dedicated to assisting those in financial difficulty. Call The Bankruptcy Group at 888-710-4334 to see how we can help.