What's the difference between a bankruptcy lawyer and a trustee? from krieger.ca Bankruptcy Lawyers Los Angeles: A Comprehensive Guide Bankruptcy can be a harrowing experience, especially when you are unsure of what to do. If you are in Los Angeles, you are not alone. The City of Angels has a high cost of living, which can lead to financial hardships for many people. Fortunately, there are bankruptcy lawyers Los Angeles residents can turn to for help. In this guide, we'll explore the ins and outs of bankruptcy law in Los Angeles, and provide valuable insights and advice to help you navigate this challenging time. The Role of Bankruptcy Lawyers Los Angeles Bankruptcy lawyers play a crucial role in helping individuals and businesses navigate the complex legal procedures involved in filing for bankruptcy. In Los Angeles, where the bankruptcy courts are among the busiest in the country, having a knowledgeable and experienced bankruptcy lawyer is essential. A bankruptcy lawyer can help you understand the different types of bankruptcy, assess your financial situation, and determine the best course of action for your needs. Topic 1: Chapter 7 Bankruptcy in Los Angeles Chapter 7 bankruptcy is the most common type of bankruptcy filed in Los Angeles. It is also known as a "liquidation" bankruptcy, as it involves the sale of a debtor's non-exempt assets to pay off creditors. In Los Angeles, the median income for a household of four is around $85,000, which means that many people may qualify for Chapter 7 bankruptcy. However, there are income restrictions and other requirements that must be met to file for Chapter 7. Here are three important things to know about Chapter 7 bankruptcy in Los Angeles: 1. Exemptions: In California, there are exemptions that allow you to keep certain assets, such as your home, car, and personal property, even if you file for Chapter 7 bankruptcy. These exemptions vary depending on your situation, so it's important to consult with a bankruptcy lawyer to determine which exemptions apply to you. 2. Means Test: To qualify for Chapter 7 bankruptcy in Los Angeles, you must pass a means test. This test compares your income to the median income in California and determines whether you have enough disposable income to pay off your debts. 3. Credit Counseling: Before you can file for Chapter 7 bankruptcy in Los Angeles, you must complete a credit counseling course from an approved provider. This course will help you understand your financial situation and explore alternatives to bankruptcy. Topic 2: Chapter 13 Bankruptcy in Los Angeles Chapter 13 bankruptcy is another option for those who do not qualify for Chapter 7 or who want to protect certain assets, such as their home, from liquidation. In Chapter 13 bankruptcy, you work with your creditors to create a repayment plan over a period of three to five years. Here are three important things to know about Chapter 13 bankruptcy in Los Angeles: 1. Repayment Plan: In Chapter 13 bankruptcy, you will work with your bankruptcy lawyer to create a repayment plan that fits your budget. Your plan may include reduced payments, lowered interest rates, or even the discharge of some debts. 2. Eligibility: To qualify for Chapter 13 bankruptcy in Los Angeles, you must have a regular income and your debts must fall within certain limits. Your bankruptcy lawyer can help you determine whether you are eligible for Chapter 13. 3. Trustee Payments: In Chapter 13 bankruptcy, you will make payments to a trustee who will distribute the funds to your creditors. It's important to stay current on these payments, as failing to do so can result in your case being dismissed. Topic 3: Bankruptcy and Foreclosure in Los Angeles Foreclosure is a common concern for those facing financial difficulties in Los Angeles. If you are behind on your mortgage payments, you may be at risk of foreclosure. However, bankruptcy can help you stop foreclosure and give you time to catch up on your payments. Here are three important things to know about bankruptcy and foreclosure in Los Angeles: 1. Automatic Stay: When you file for bankruptcy, an automatic stay goes into effect, which prevents creditors from taking any further action against you, including foreclosure. This gives you time to work with your bankruptcy lawyer to create a plan to catch up on your mortgage payments. 2. Chapter 13 Bankruptcy: If you are facing foreclosure, Chapter 13 bankruptcy may be a good option for you. Your bankruptcy lawyer can help you create a repayment plan that includes your mortgage payments, allowing you to catch up on your payments over a period of three to five years. 3. Loan Modifications: Another option to avoid foreclosure is to negotiate a loan modification with your lender. Your bankruptcy lawyer can help you explore this option and negotiate with your lender on your behalf. Topic 4: Bankruptcy and Student Loans in Los Angeles Student loans are a significant burden for many people in Los Angeles. Unlike other types of debt, student loans are not dischargeable in bankruptcy, unless you can prove "undue hardship." However, there are still options available to help you manage your student loan debt. Here are three important things to know about bankruptcy and student loans in Los Angeles: 1. Undue Hardship: To discharge student loans in bankruptcy, you must prove "undue hardship," which is a very high standard to meet. Your bankruptcy lawyer can help you determine whether you may qualify for this exception. 2. Income-Driven Repayment Plans: If you have federal student loans, you may be eligible for income-driven repayment plans, which can lower your monthly payments based on your income. Your bankruptcy lawyer can help you explore these options. 3. Private Student Loans: If you have private student loans, you may be able to negotiate a repayment plan or settlement with your lender. Your bankruptcy lawyer can help you negotiate with your lender and explore your options. Conclusion Bankruptcy can be a difficult and stressful experience, but with the help of a knowledgeable bankruptcy lawyer, you can navigate the process with confidence. Whether you are considering Chapter 7 or Chapter 13 bankruptcy, facing foreclosure, or struggling with student loan debt, there are options available to help you get back on track. By working with a bankruptcy lawyer in Los Angeles, you can create a plan that fits your needs and protects your assets. Summary Bankruptcy Lawyers Los Angeles: A Comprehensive Guide I. The Role of Bankruptcy Lawyers Los Angeles A. Chapter 7 Bankruptcy in Los Angeles 1. Exemptions 2. Means Test 3. Credit Counseling B. Chapter 13 Bankruptcy in Los Angeles 1. Repayment Plan 2. Eligibility 3. Trustee Payments C. Bankruptcy and Foreclosure in Los Angeles 1. Automatic Stay 2. Chapter 13 Bankruptcy 3. Loan Modifications D. Bankruptcy and Student Loans in Los Angeles 1. Undue Hardship 2. Income-Driven Repayment Plans 3. Private Student Loans