Understanding the California Bankruptcy Process

Assistance from Skilled California Bankruptcy Attorneys

If you are struggling with debt and considering bankruptcy, you may have concerns about the bankruptcy process. Some people avoid bankruptcy altogether because they think it is just too complex. While bankruptcy is a complex area of law, an experienced attorney can make the process as straightforward and simple as possible for you.

At RHM LAW LLP, our attorneys know the bankruptcy process from A to Z and have helped numerous clients achieve debt relief by filing for Chapter 7 and Chapter 13 bankruptcy. Our bankruptcy lawyers in Los Angeles will work with you personally to help you explore your debt relief options. If you decide bankruptcy is right for you, we will guide you through the process and handle all of the legal details. We represent clients in San Fernando Valley and throughout Los Angeles, Riverside, San Bernardino, and Orange Counties.

For a 30-minute risk-free consultation, contact our firm today. It could be your first step on the road to debt relief. 

Chapter 7 Bankruptcy Process in California

In a Chapter 7 bankruptcy, a trustee “steps into the shoes of the debtor” for a short period of time. Assets that cannot be protected can be liquidated and The Trustee will make distributions to creditors. Keep in mind, the majority of Chapter 7 bankruptcies are “no asset” cases, meaning the debtor’s assets are entirely exempt from being seized and liquidated. It is extremely important to obtain the proper bankruptcy counsel to preserve and protect what is important to you and your family!

Following is a general outline of what you can expect from the Chapter 7 bankruptcy process:

• We will review your financial situation, including looking at your last two months of pay stubs, credit reports, lawsuits against you, and other details
• If you decide bankruptcy is right for you, you will have to undergo a means test to determine if you qualify for Chapter 7
• If you qualify, we can file the bankruptcy petition, enacting the automatic stay, and stopping your creditors from taking further actions against you
• You must attend a meeting with your trustee, which takes place 30 to 45 days after filing
• When your bankruptcy is successful, your debt is discharged after four to six months from the date of filing

Chapter 13 Bankruptcy Process in California

If you file for Chapter 13 bankruptcy, you face a different process. Debt is not discharged immediately, but rather after the completion of a three- to five-year payment plan. All collection efforts are stopped! You will propose a feasible payment plan to the bankruptcy court, based on a number of factors, including the amount and nature of your debt, your assets, and your “disposable” income. You can even cure the arrears on your home and force the lender to cure the payments over 60 months! This can be accomplished for other secure debt as well including but not limited to your car, tools of the trade, and even IRS debt!

Filing for Chapter 13 immediately enacts the automatic stay, which protects you from home foreclosure, repossession, creditor harassment, and other consequences of debt. Whether you file for Chapter 7 or Chapter 13 bankruptcy, our Los Angeles bankruptcy lawyers will guide you through every step of the process.

Contact Our Bankruptcy Lawyers in California Today!

Our California law offices are open weekdays from 7:00 a.m. to 7:00 p.m., and we serve clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles.

Call RHM LAW LLP today at (213) 344-0043 to speak to a member of our team. We can help you get a fresh start.