Bankruptcy Lawyer Explains Exemptions in California

When filing for bankruptcy you need to work with a bankruptcy lawyer that is an expert at understanding the laws, exemptions, and nuances associated with these types of proceedings. Bankruptcy can be the solution you are looking for in order to get out from under a mountain of debt and to live your life freely once again.  Getting constant debt collection calls is no fun and can even be extremely stressful.  For many people, this is a reason enough to declare bankruptcy and a skilled attorney can help.

It is important to understand that although bankruptcy sounds simple, there are many laws that come into play when going this route.  For example, just because you are allowed to declare bankruptcy doesn’t mean that a judge has to approve it or that they have to approve your specific plan.  There is no guarantee that they will, making it important to work with an expert. 

Once you have filed for bankruptcy, there are certain exemptions that you should be aware of.  An exemption is something that can be excluded from your assets while filing.  A California bankruptcy lawyer can provide you with more specifics but in the meantime here is what you need to know. 

• Your Home.  Your primary residence can include a physical stick built house, mobile home, RV, boat or wherever you happen to live.  According to the law you can have $75,000 in equity in your home and that equity can be exempt from liquidation in the bankruptcy.  If you are married, both spouses can claim the full exemption for a total exemption of $150,000.  The rules can change based on certain groups of people for example retirees or the disabled.  If you claim an exemption and the total equity in your home is at that amount or less, the trustee will not sell your home, and you can keep it while continuing to make the payments on it.  If your equity exceeds the exemption amount, they may force you to sell your home. 
• Personal Property.  Generally speaking, your furniture, appliances, clothing, food, and things necessary for living are exempted from the bankruptcy. Jewelry is only exempt up to $5,000 which cannot be doubled by the spouse like the home equity can. 
• Bank Deposits.  If you receive social security payments, $2,000 of your bank account balance can be exempt.
• Cars.   You can have up to $1,900 in equity in your car.  If it is over that amount, the vehicle may be liquidated by the trustee. Your bankruptcy lawyer can also argue the merits as to why you need to keep it.  This may include an argument for your need to get to work or pick up kids from school.  At times, you may be allowed to keep it but have to pay the amount over the allotted equity exemption. 

There are also rules for how much of your wages you are entitled to keep along with pension funds and retirement. Hiring a bankruptcy lawyer is important for ensuring that you can keep the maximum amount of your income, assets, and retirement funds.  To learn more call The Travis Law Firm today.

What You Should Know Before Hiring a Bankruptcy Attorney

If you are in over your head with debt, a bankruptcy attorney can help.  When financial circumstances become overwhelming, there are ways you can address them in order to get back on your feet.  While bankruptcy used to have negative associations, the down economy has led many people to consider it as an option.  One thing you should evaluate is the level of stress your current debt load and financial situation is creating in your household.  Is that stress worth continuing the struggle and dealing with non-stop debt collection calls?  Many people find a huge sense of relief when the calls and letters finally stop. 

Before you hire a lawyer, there are certain things you need to know.

Bankruptcy Law is a Specialty

Just because someone is a lawyer does not mean that they know how to handle bankruptcy cases.  Yes, they can research it but that time will be added to your bill.  Why spend more money than you have to when you can work with an expert that can complete the paperwork and proceedings with efficiency?  Working with an expert attorney will also give you the advantage of learning about certain areas of the law that others may be unaware of.

There Are Several Types of Bankruptcy

There is no one size fits all bankruptcy solution.  There are several chapters within the bankruptcy code that you can file yours under.  A skilled bankruptcy attorney will be able to discuss your current financial situation with you and make a recommendation for what is likely the best way to file.  For example, there are liquidation bankruptcies where assets are sold in order to pay creditors and bankruptcies that are designed to pay creditors back over time with a set payment plan.  The type that you file should be based on your current financial capabilities and your goals.  

You Can Typically Keep Your Home

Unless you have a staggering amount of equity in your home, you can typically maintain ownership of it even when filing bankruptcy.  If this is your goal, let your attorney know right away so that they can create a legal strategy in order to accomplish it.  Even if you are facing foreclosure a bankruptcy may be able to stop the proceedings and allow you to continue living there.  

Share the Details

When speaking with your bankruptcy attorney, be sure to provide any and every detail about your financial situation and your goals.  This way they can create a legal strategy that will be successful.  If the hearing officer or judge feels that you are untruthful about your financial situation they may not approve the bankruptcy in the first place.  Transparency matters in this situation. 

Ask About Fees

Any time you hire a lawyer you should ask what they will charge and how they will bill you.  It is important to enter a relationship with a mutual understanding.  This will also help you to budget for anything that you need to spend. 

If you are considering filing bankruptcy, The Travis Law Firm can help.  Schedule your consultation by calling (951) 274-9501.