At The Travis Law Firm, we offer bankruptcy legal services to individuals and families throughout California. We understand that this is a major decision both financially and personally. This makes it important to work with a trusted advisor. In the state of California, and elsewhere, there have been issues with companies offering bankruptcy help that did not follow through or file the paperwork correctly. As an individual, it is difficult, if not impossible, to know if someone you hire will do what they say and that is why you should work with an attorney. Attorneys have a fiduciary duty to their clients, meaning that we are held to a higher standard and responsible for giving sound advice and doing things in accordance with the law and our clients’ interest.
An example of these issues arose when California homeowners were trying to protect their homestead interest. The state of California allows for anywhere from $75,000 to $175,000 of equity in a home to be protected as part of the bankruptcy process. That means that when filing bankruptcy, if you owe $75,000 in unsecured debt and have $75,000 in equity in your home, you would not be required to sell your home to pay off the debt. This is an important law that has helped families throughout the country to remain in their home while getting out from under their debts.
Unfortunately, companies throughout California were offering bankruptcy legal services by saying that they would handle the paperwork and document filing for the homestead provision to apply then not doing it. In order to have your home protected using this law, you have to file paperwork in the county where you live. These companies were not lawyers but were still offering these services. When many of them failed to do what they said, homeowners were not granted their homestead protections, and some lost their home as a result. The state legislature responded by regulating these companies so that other families would not suffer the same fate. You can read the regulations by searching for CAL. BPC. CODE 17537.5.
While this was a good step taken by the legislature, it simply serves to demonstrate the importance of working with a law firm when undergoing something as significant as a bankruptcy filing. When you file bankruptcy, there is a set process that must be followed in order to ensure that it is done correctly. There is a variety of forms and deadlines that must be met.
Additionally, if you are trying to protect your home or other assets like your car, steps must be taken to do so. You can’t simply request it but need to go through the process, and this is where non-lawyers struggle. The legal system is not designed to be simplistic or easily manageable. While that would be nice, it’s simply not the case because every time a new piece of legislation is passed, the laws become that much greater. As an attorney, it is our job, duty, and responsibility to understand the law, follow it and adhere to all procedural guidelines. As such, if you are looking for bankruptcy legal services, call our law firm so that you can trust it will be handled correctly.
