Speak with a Bankruptcy Lawyer Before Filing for Bankruptcy

It is important to consult with a bankruptcy lawyer before you file.  This will help you understand your options fully and how they will impact you and your family both now and in the future.  Selecting the right type of filing is the first step to achieving your financial goals and getting out from under your debts.

One of the first things we will ask during your consultation is what your goals are.  Consider the financial goals you have for your family. This should include what you want your monthly budget to look like and what assets you want to keep or get rid of.  We also need to know how much money you are making on a monthly basis and what your current expenses are aside from your debts.  This will help us make an educated recommendation on how you should proceed.

As a bankruptcy lawyer, we can help with a Chapter 7 and Chapter 13 bankruptcy. There are major differences between the two and it is important to select the right one.

Chapter 13

A Chapter 13 filing is a good idea for people who want to keep the majority of their assets and pay back creditors over time.  Many people don’t like the idea of liquidating everything so they would rather continue to pay off their debt in a way that is manageable on a monthly basis.  We work with clients to create a monthly budget that is reasonable and affordable.  This budget needs to take into consideration how much money you make after paying taxes, child support, rent or a mortgage, utilities, groceries, gas and incidentals.  The remaining amount should be what you have available for making debt payments.  Every monthly expense has to be calculated otherwise you will not be able to keep up with the arranged payment plans.  If the trustee feels that your monthly budget is accurate they will look at your proposed settlement plan.  In this scenario, your creditors will take a reduced amount overall while still getting something in return.

Chapter 7

This is a liquidation bankruptcy where your assets are sold to pay off your debts. This may include all of your assets including your home.  However, as a bankruptcy lawyer we will request that certain assets like your home and car are exempt from liquidation.  The trustee is likely to approve this as long as there is not a lot of equity in the property.  If the equity in the property is enough to pay off a lot of your debts, it may need to be sold.  This is an ideal situation for people that cannot possibly make debt payments and want to be free from the stress quickly.  Once the bankruptcy is approved your creditors cannot come after you for additional payments.

To learn more about the various types of filings and what they can mean for your financial future, call the Travis Law Firm at (951) 274-9501.

A Bankruptcy Attorney Can Help to Stop a Foreclosure

If you are facing foreclosure, a bankruptcy attorney can help stop the process.  It is important to consult with a lawyer right away if you feel that the bank is about to start a foreclosure action.  Once they have filed a motion to foreclose with the court it is more difficult to stop the process.  The Travis Law Firm helps families throughout California to stay in their home while navigating through bankruptcy proceedings. 

There are two main types of bankruptcy, a Chapter 7 and Chapter 13.  Once you file with the court, an automatic stay is put in place so that your creditors cannot continue their collection action until the court has sorted things out. This is a huge benefit for families that want to find a way to stay in their home but are overwhelmed by the constant collection calls and being behind on their bills. 

Consulting a bankruptcy attorney is the first step in the process.  We can make recommendations on which type of bankruptcy you should file based on your current financial situation, needs and goals.  Filing correctly is essential for stopping foreclosure and time is of the essence so do not delay in contacting us. 

Chapter 7

A chapter 7 is the most commonly known bankruptcy because it liquidates your assets in order to wipe out your debts.  In this scenario, the court appointed trustee will review your documents to determine how much money your creditors would receive if your assets were sold off to pay them.  It is understood that they will not get what is owed to them but hopefully they get something.  If you have a lot of equity in your home, the trustee may require it to be sold.  Typically those facing foreclosure do not have a lot of equity so selling it would not help the situation.  When this is the case, you can request for it to be exempt from the proceedings.  The trustee will make their determination in part based on your ability to keep paying the mortgage.  If your other debts were wiped out could you pay your mortgage on time?  If so, you have a good chance of being able to keep your home.  

In this scenario, the lender will often take the amount that you owe in back payments and interest then attach it to the end of the loan.  This allows you to make payments on time going forward.  Once your bankruptcy is finalized you still have to make these future payments on time.  If you don’t there is nothing stopping the lender from foreclosing again. 

Chapter 13

This type of bankruptcy allows you to create a settlement plan and make payments to your lenders.  They typically have to agree to a reduced payoff amount and your bankruptcy attorney will make a proposed payment plan to the trustee.  This plan needs to be realistic, and the trustee needs to feel confident in your ability to make the payments over a period of time.  This usually lasts for three to five years.  If you want to keep your home, the payment should be included in your ongoing monthly payments. 

To learn more contact The Travis Law Firm by calling (951) 274-9501.