Answers to Your Bankruptcy Questions

How Bankruptcy Affects Your 401k, IRA and Other Retirement Accounts

If you are considering bankruptcy, you may be wondering how it would affect your retirement accounts. Will your accounts be liquidated to pay creditors? Will you be able to preserve any portion of your retirement savings? Should you drain your 401k to pay down debt rather than file bankruptcy?

At RHM LAW LLP, we will answer all your bankruptcy-related questions, giving you the necessary information to make a sound decision about whether bankruptcy is the right solution for you. For legal advice tailored to your specific situation, call our firm at (213) 344-0043 to arrange a free consultation.

Can Creditors Touch My Retirement & 401K Funds?

Most of your retirement funds such as 401ks and other qualified retirement accounts are protected from creditors and untouchable by a bankruptcy trustee. Since these funds are protected by federal bankruptcy laws, it is rarely a good idea to cash in your retirement accounts to pay off your debts.

In a Chapter 7 bankruptcy, most retirement accounts are classified as exemptions under the Bankruptcy Code. That means these accounts cannot be liquidated to pay your creditors. Under Chapter 13 bankruptcy, none of your assets are taken from you. The monthly repayment plan amount is determined by your income. Your retirement savings are only included in this amount if you want them to be.

Should I Borrow From My 401k to Pay Debts?

No! Before you needlessly drain your 401k or other retirement account to pay down debt, speak with our bankruptcy attorneys. Since retirement accounts are protected under federal bankruptcy law, you may be better off filing bankruptcy and preserving your retirement funds.

You should avoid touching your 401k if you are in debt for the following reasons:

• If you cash out your 401k, you could face steep penalties for early withdrawal and could be making your debt worse.
• If you transfer your 401k funds into another account, these funds will lose their retirement fund exemption status and will be accessible by creditors.
• Transferring funds into your 401k shortly before bankruptcy can also raise red flags with the bankruptcy trustee, who may think you are attempting to commit fraud by shielding assets from bankruptcy.

Your retirement savings represents years of hard work and sacrifice. Losing this nest egg is a major concern. Get the facts from bankruptcy lawyers who have your best interests in mind.

Southern California Bankruptcy law Firm

Do not let fears about losing your retirement accounts stop you from getting the debt relief you deserve. Count on RHM LAW LLP for trusted bankruptcy assistance. We welcome the chance to meet with you and evaluate your financial situation.

Contact our firm to schedule a free consultation today. We maintain offices in Los Angeles and Encino. Payment plans are available.

If you are behind on your payments, you probably already know how aggressive creditors can be when it comes to collection actions. In this situation, it is important that you understand your rights as a debtor.

At RHM LAW LLP , we have thorough knowledge of the Fair Debt Collection Practices Act. Our attorneys use this information to protect debtors from unscrupulous actions of abusive and misleading creditors. To discuss your specific situation, call our offices in Los Angeles or Encino at (213) 344-0043.

Are you concerned that debt collectors have been engaging in illegal harassing behavior? Contact the Southern California law firm of RHM LAW LLP for protection.

Stop Creditor Harassment

The Fair Debt Collection Practices Act limits the actions debt collectors can take. For example, it states that creditors:

• Need to educate you about the collection process
• Cannot phone your home continuously
• Are prohibited from calling your home after specified hours
• Cannot call you at work
• Are not allowed to call your neighbors

If you have questions about what creditors can and cannot do with respect to collecting debt payments, speak with the bankruptcy lawyers at RHM LAW LLP . We will evaluate your situation and let you know if the collector violated the law.

Bankruptcy Provides Protection

As soon as you file either Chapter 7 or Chapter 13 bankruptcy, the court issues an automatic stay. This prevents creditors and debt collectors from contacting you, putting a stop to all creditor harassment. Your lawyer will handle all communications with your creditors from that point forward.

To schedule a free consultation with our attorneys, contact our firm today.

A common bankruptcy myth is that you must give up all of your property if you file for bankruptcy. In fact, many people who file for bankruptcy are able to keep everything they own while enjoying protecting from creditors and debt relief.

If you have questions about what you can keep in a bankruptcy, the attorneys at RHM LAW LLP , are here to provide answers. We have helped numerous clients throughout the Los Angeles area achieve debt relief while keeping their property. Call (213) 344-0043 or contact us online for a free consultation with a California bankruptcy lawyer. It could be your first step on the road to debt relief.

Keeping Your House and Car in Bankruptcy

Your house: The law provides many options for saving your house from foreclosure. Filing for bankruptcy stops foreclosure immediately. In a Chapter 7, your house will likely be exempt from being seized. If you file for Chapter 13 bankruptcy, you will have three to five years to pay and cure your past-due mortgage payments (“arrears”).

Your car: Bankruptcy stops car repossession. If your car was already repossessed, bankruptcy may help you get it back. Whether you can keep your car permanently depend on your specific circumstances. In a Chapter 7, you may be able to keep your car if you keep up to date on payments or even reaffirm the note with a possible reduction in balance. If you file for Chapter 13, you will likely keep your car and may even qualify for an auto loan cram down.

Other Items You Can Likely Keep

In addition to your car and your house, bankruptcy will generally allow you to keep such property as:

• Household goods and furnishings
• Personal belongings
• Checking and savings accounts
• Pension
• 401(k) account
• Tools of the trade
• Social Security benefits
• Unemployment compensation
• Welfare benefits
• Other real estate, including rental property

These exemptions are subject to value caps and may change as bankruptcy law evolves. For information about what you can and cannot keep in a bankruptcy, it is important to consult with an experienced bankruptcy lawyer.

Choosing the Right Bankruptcy Attorney

Bankruptcy can be a stressful and complex process. Along with completing precise paperwork and attending hearings, many people experience an emotional impact. During this challenging time, it can be helpful to enlist the assistance of an experienced bankruptcy attorney who understands your needs and concerns.

At RHM LAW LLP , we know bankruptcy. It’s what we do. Our lawyers have helped thousands of individuals and small businesses overcome financial hurdles through filing Chapter 7 or Chapter 13 bankruptcy. As your legal advocates, we will be by your side the entire time. Call our offices in Los Angeles and Encino at (213) 344-0043 to schedule a free consultation today.

Find an Attorney Who Meets Your Need for Quality and Service

There are an abundance of bankruptcy attorneys in Southern California. Knowing which way to turn can be difficult. When looking for a bankruptcy lawyer, pay attention to:

• Experience — An experienced lawyer not only knows how to file bankruptcy paperwork, but also understands the system. He or she can use this knowledge to help your bankruptcy proceed as smoothly as possible.
• Honesty — It is essential that your attorney have a sterling reputation for honesty in the bankruptcy court.
• Knowledge of the law — Bankruptcy laws are continually changing. Therefore, it is important that your attorney have a thorough understanding of current laws.
• Personal service — Bankruptcy can be a stressful process. Having a lawyer who keeps you well informed, answers your questions promptly and is highly accessible is important.
• Reputation — Most of our clients are referred from former clients and colleagues. That speaks volumes about our ability and approach.

At RHM LAW LLP , our attorneys have all these qualities and more. Learn more about why we have a reputation for quality legal services in Southern California.

When You Meet With Our Bankruptcy Attorneys

The sooner you file for bankruptcy, the sooner you can get debt relief. However, before you file, you should meet with an experienced lawyer who will perform a financial analysis to ensure bankruptcy is the right solution for you. By bringing the proper documents with you to your appointment with RHM LAW LLP, we can expedite the process.

Call (213) 344-0043 to schedule a free initial consultation with a bankruptcy attorney at RHM LAW LLP . From our offices in Los Angeles and Encino, we serve clients throughout Southern California.

Documents to Prepare and Bring

Prepare and bring the following information with you to your appointment:

• Pay stubs from the past two months
• Monthly expense information, excluding unsecured debt
• Federal and state tax returns for the past two years
• A free credit report
• Creditor statements, including names, addresses and account numbers
• A list of the property you own
• Credit counseling certificate
• Photo identification
• Social Security card

The more information you provide at your initial consultation, the more comprehensive your evaluation will be. It is important that you let your attorney know about all of your debts, even if they involve property you wish to retain.

Determining Which Type of Bankruptcy Is for You

Due to bankruptcy law changes made in October 2005, you have to pass the means test to qualify for Chapter 7 bankruptcy. Whether you are eligible for Chapter 7 or Chapter 13 bankruptcy is largely dependent on your income earned over the past six months. Our lawyers will determine which type of bankruptcy you qualify for.

To schedule your free initial consultation, contact our firm. We have helped thousands of clients in Los Angeles, San Fernando Valley, Riverside, San Bernardino and Orange Counties.

If You Choose Not to Take Action

The decision to file bankruptcy should never be taken lightly. However, sometimes not filing can have more serious consequences than filing can. Failure to take action can cause problems you may not have even considered yet.

At RHM LAW LLP , we understand that debt can be overwhelming. Closing your eyes and hoping the problem goes away is tempting. But, we also know that sometimes the only way out of crippling debt is to file either Chapter 7 or Chapter 13 bankruptcy. Bankruptcy provides protection under the law, giving you room to breathe and start rebuilding your financial future.

Risks of Doing Nothing

If you sit back while debts mount, you risk:

• Creditor lawsuits, including embarrassing phone calls at home and at work
• Home foreclosure
• Car repossession
• Creditor harassment
• Wage garnishments

Once a creditor obtains a judgment against you, that individual or entity can pursue foreclosure, repossession, garnishments and more.

Seek Professional Advice

Our Southern California bankruptcy attorneys can help. During a free initial consultation, we can explain your options and the consequences of those options. Our lawyers will let you know if filing either Chapter 7 or Chapter 13 bankruptcy is a reasonable solution for you. If bankruptcy is not in your best interests, we will not hesitate to let you know.

Call us at (213) 344-0043, or contact us online to schedule your complimentary consultation. From our offices in Los Angeles and Encino, we represent clients in Los Angeles, San Fernando Valley, Riverside, San Bernardino and Orange Counties.

Because we do not want to add to your financial worries, we offer payment plans.

Determining When Bankruptcy Is the Right Choice

The decision to file bankruptcy should never be taken lightly. For some, bankruptcy can provide immense relief and an opportunity to start over. For others, it is not the best option. At RHM LAW LLP , our attorneys can help you weigh the pros and cons. We can evaluate your financial situation and help you decide whether filing Chapter 7 or Chapter 13 is the best path for you.

Call our firm at (213) 344-0043 to schedule a free initial consultation. Our experienced bankruptcy lawyers welcome the chance to meet with you and discuss the specifics of your particular situation.

When Is Bankruptcy a Good Solution?

If you are facing an urgent situation, such as a foreclosure, repossession or garnishment, it may be time to file for bankruptcy. When considering whether to file, ask yourself the following questions:

• Is your total unsecured debt more than 50 percent of your take-home pay?
• Are you borrowing money from one credit card to make payments on another?
• Are creditors harassing you through phone calls and letters?
• Are you forced to buy necessities, such as food and clothing, on credit?
• Are you frequently late paying bills?
• Is financial stress causing problems with your health, marriage or work life?

If you answered “yes” to some of these questions, you may want to consider filing bankruptcy. Immediately after filing, an automatic stay goes into effect, stopping all creditor harassment, foreclosures, repossessions and most garnishments. This will give you time to breathe and make a plan for the future.

When Is Bankruptcy Not the Best Plan?

If you are able to repay your debts on your own, bankruptcy may not be the right choice for you. You may be better off working on maintaining a trimmed budget and seeking a loan modification for car or home loans. If bankruptcy is not in your best interests, our attorneys will not hesitate to let you know.

The Advantages of Working with RHM LAW LLP

In the greater Los Angeles area, a person looking for a bankruptcy lawyer can choose from many law firms. At RHM LAW LLP , we are convinced that we provide the most personalized and responsive service to our clients. We also offer long-term payment plans to those that qualify so you can get the help you need now.

The many advantages of working with RHM LAW LLP include:

Big firm expertise in a small firm setting – Before starting RHM LAW LLP , our founders worked at large law firms. They now apply that expertise and professionalism in a small firm environment. Client service and responsiveness are our hallmarks.

A casual and accepting environment – People come to RHM LAW LLP because they are in financial trouble. We do not make value judgments about how they got here, or lecture them about how they should have behaved. We practice consumer bankruptcy because we like people. Clients begin with a clean slate when we meet them to discuss their options.

We focus solely on bankruptcy – Because we only practice in the bankruptcy area, we can provide highly efficient services for our clients. Our attorneys stay on top of all of the latest developments in bankruptcy law, so that we can use the bankruptcy laws to the advantage of our clients. You can feel confident knowing you have the advantage of an experienced team of attorneys and legal professionals working for you.

Long-term payment plans available – RHM LAW LLP offers simple and convenient flat rate fees for most services, and payment plans for those who qualify.

Free consultation – We offer a free initial consultation in our offices from 7:00 am to 9:00 pm, Monday through Friday, as well as weekend appointments. We have offices in Beverly Hills and Encino to serve you.

Bi-lingual staff – Our staff speaks English and Spanish. We communicate to you in the way that is most comfortable to you – in person, by phone, or by e-mail.

Attorneys you can trust – Most importantly, we seek to build a bond of trust between our firm and our clients. You can trust RHM LAW LLP to handle your bankruptcy filing with efficiency and professionalism. We care about your future.

For a free initial consultation with a bankruptcy lawyer at RHM LAW LLP , call (213) 344-0043 or contact us online. Our firm serves clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles.

Benefits of Hiring a Professional

Just because you can file for bankruptcy on your own does not mean you should. The Bankruptcy Code is complex. The laws are continually evolving. Even a simple mistake can cause your bankruptcy petition to be dismissed. By hiring a bankruptcy lawyer, you can help ensure your case proceeds smoothly.

Do not put your home, car or other assets at risk. Trust RHM LAW LLP , to handle your bankruptcy case with professionalism, punctuality and an emphasis on personal attention. Our firm has worked with thousands of individuals and small businesses in the Los Angeles and Encino area. We have detailed understanding of bankruptcy laws and will work hard to help you make a fresh financial start.

How a Lawyer Can Help With Your Chapter 7 or Chapter 13 Bankruptcy

A bankruptcy attorney does more than simply file paperwork. A lawyer can:

• Offer protection from creditors — While an automatic stay goes into effect when you file bankruptcy, creditors may challenge a bankruptcy petition. When this happens, you need an attorney who is a skilled negotiator, as well as a motivated litigator to protect your rights.
• Help you understand all available facts — Bankruptcy laws are complex. Even if you think your case is straightforward, there may be factors you do not know about.
• Give you peace of mind — A bankruptcy attorney will answer all your questions, represent you at any hearings and stand by your side throughout your case.

When you hire RHM LAW LLP , your bankruptcy is in good hands. We will provide trusted advice, walk you through the proceedings and help enforce your rights. Don’t make the mistake of trying to represent yourself. Call the Southern California professionals.

Bankruptcy Guidance from an Experienced Law Firm

If you represent yourself in a bankruptcy, you will be held to the same standard as a lawyer. Give yourself the advantage of working with an experienced attorney who knows all aspects of bankruptcy law.

Call (213) 344-0043, or contact us online to schedule a free consultation. We maintain offices in Los Angeles and Encino.

When One Spouse Files Bankruptcy

When one spouse has accumulated significant debt in his or her name only, that individual may file bankruptcy without the other spouse being forced to file as well. While this option has many advantages, it also has some disadvantages. It pays to carefully consider the pros and cons before making a final decision. An experienced attorney can help you determine if this is the right path for you.

At RHM LAW LLP, our lawyers will meet with you to discuss your unique financial situation. Our firm has helped thousands of clients in Southern California achieve reasonable solutions to debt problems. We recognize everyone’s circumstances are different and will help you determine the best route for you.

Your Spouse’s Income

If you file for bankruptcy but your spouse does not, your spouse will still need to provide information about his or her salary and assets. The bankruptcy court will use this information to decide whether you qualify for Chapter 7 or Chapter 13 bankruptcy. If you do not pass the means test for Chapter 7, your spouse’s income will be considered when a repayment plan is developed for Chapter 13.

Your Spouse’s Credit Report

If you file for bankruptcy, your spouse’s credit may be impacted if you own any joint property. While credit reporting businesses are not supposed to penalize your spouse, it does happen. One more thing to keep in mind is that your credit could affect a loan or credit card application if you jointly apply with your spouse in the future.

Serving Los Angeles, Encino and Other Southern California Communities

When considering whether to file individual bankruptcy, it is important to consider various questions. Is most of your property owned jointly? Are you ready to file bankruptcy but your spouse is opposed to filing? Our bankruptcy attorneys will help you make strategic decisions to get real debt relief.

Call (213) 344-0043, or contact us online to schedule a free consultation with our bankruptcy professionals. We maintain offices in Los Angeles and Encino. For your convenience, we offer payment plans.

Helping You Keep Your Vehicle in Bankruptcy

Having a car is essential for most Americans. When people are thinking about bankruptcy, one of their primary concerns is keeping their vehicle.

At RHM LAW LLP , we understand you need transportation to and from work, as well as for running errands and other purposes. That’s why our lawyers are dedicated to helping people filing Chapter 7 and Chapter 13 bankruptcy find the debt relief they need while retaining their cars.

When Can I Keep My Car During Bankruptcy?

Whether or not you can keep your vehicle during bankruptcy can depend on several factors:

• Do you own the vehicle? If you own your vehicle, you generally do not have to worry about losing your car, as it is generally protected by exemptions. This is usually applicable to older vehicles with lower market values.
• Is your vehicle covered by bankruptcy exemptions? If your vehicle's market value is lower than the exemption amount, your vehicle can be covered under the exemption, which protects it from being liquidated by the trustee.
• Can you keep up with car payments if you financed or leased it? If you are still paying off a car, you have the option to catch up on past payments and reorganize the loan into more affordable monthly payments. If you cannot afford the monthly payments, you may need to consider surrendering the vehicle to the lender.

It might reassure you to know that most people who file bankruptcy are able to keep their car. In fact, in bankruptcy, oftentimes we are able to reduce a car’s value to fair market value and force the lender to accept the payments through a Chapter 13 bankruptcy repayment plan. As a result, your monthly car payments can be significantly reduced.

What Are the Motor Vehicle Bankruptcy Exemptions?

The Bankruptcy Code is designed to help debtors, not punish them. As such, bankruptcy law protects certain property classified as exemptions, including allowing a petitioner to retain a car as an exemption.

In California, the 704 Motor Vehicle Exemption (System 1) allows protection of up to $3,325 in equity.

The 703 Motor Vehicle Exemption under System 2 allows up to $5,850 of equity for cars.

What If My Car Is Being Repossessed? Can I Stop It?

If you are behind on your car payments, the lender has the right to repossess the vehicle. However, when you file either Chapter 7 or Chapter 13 bankruptcy, the court issues an automatic stay. This freezes all repossessions, giving you time to catch up on missed payments. Even if your car was recently repossessed, filing bankruptcy can help you get it back — and get it back fast.

If you file Chapter 7, you may be able to retain your car if you make timely payments. Under Chapter 13, you may be able to keep your vehicle by paying the creditor the value of the car rather than the full amount due on the debt.

We Are on Your Side

For answers to all your bankruptcy questions, including repossession and reaffirmation agreements, count on RHM LAW LLP . Our bankruptcy attorneys have helped thousands of clients overcome financial problems and get back on track.

Contact our firm to arrange a complimentary consultation with a bankruptcy professional who understands how important it is that you retain your vehicle.

From our offices in Los Angeles and Encino, we serve clients in Los Angeles, San Fernando Valley, Riverside, San Bernardino and Orange Counties. Payment plans are available.

Truth About Debt Relief Services

The rise in consumer debt has also give rise to a surge in the debt relief services industry. Choosing a debt relief company to represent you can be a minefield as some of these services are only out to take your money.

If you are exploring your debt relief options, you have another option available to you, and that is bankruptcy. It is not for everyone, but it may be right for you. The attorneys at RHM LAW LLP, can help you explore all your debt relief options, so you can make sound decisions and avoid the scams that are prevalent in the debt relief industry.

Call (213) 344-0043 or contact us online for a free consultation with a California bankruptcy lawyer. It could be your first step on the road to debt relief.

Be Careful About Debt Relief Services

Aside from bankruptcy, the two most common debt relief services are:

• Debt consolidation companies: These companies offer to work with your creditors to get your debts consolidated and lower monthly payments. This is a largely unregulated industry, so there is often no guarantee that they will actually do anything for you after you pay them.
• Debt settlement companies: These companies offer to work with your creditors to settle your debts for less than you actually owe. The problem is that your creditors have to agree to the plan. In the event they do and you settle your debt, you may face significant tax consequences.

Bankruptcy is not the only option for debt relief, but it is the most powerful. When you file for bankruptcy, you are protected from creditor actions by federal law. A debt relief service may offer benefits in some circumstances but cannot offer that level of protection. We strongly advise you to thoroughly research any debt relief service before handing any money over to them.

Keeping You in Your Home

One of the first questions people considering bankruptcy generally ask is, “Will I lose my house?” Because you have worked hard to purchase your home, and that is where so many memories have been made, it is an important question. The fact is that many people who file for bankruptcy are able to retain their homes, as long as the home's equity is protected by bankruptcy exemptions and if they are able to keep up with their mortgage every month.

At RHM LAW LLP, we are committed to helping families overcome debt problems and rebuild their financial lives on more solid footing. Our attorneys have helped countless individuals in Los Angeles, Encino and other Southern California communities get financial relief and stay in their homes.

What Happens to My House When I File for Bankruptcy?

If you are in default on your home mortgage and have been notified that the lender is pursuing foreclosure, it is important that you take action immediately. Filing for bankruptcy is one way to save your home. When you file either Chapter 7 or Chapter 13 bankruptcy, the court issues an automatic stay. This freezes all foreclosure actions temporarily while you sort our your finances and debts.

Depending on whether you file Chapter 7 or Chapter 13, here is what you can expect for your home:

• Under Chapter 7 bankruptcy, your unsecured debt is discharged, leaving more money for you to work on becoming current on your mortgage obligations. As long as you are able to keep up with your monthly mortgage, you will be able to keep your home.
• With Chapter 13 bankruptcy, any past due amounts are rolled into a monthly repayment amount that you make over three to five years without interest or penalties. We can even remove junior liens forever! However, if your income is not enough to afford your mortgage payments, the bank may eventually foreclose your home.

Our lawyers can also advise you about how to avoid foreclosure through a short sale, weighing the pros and cons of that possibility.

Need to Stop Foreclosure? Call Us Immediately.

To learn more about how you can avoid foreclosure, speak with the professionals at RHM LAW LLP . We welcome the opportunity to meet with you during a free initial consultation and discuss your unique situation. Not only do our attorneys know the bankruptcy laws from the inside out, but they also understand how important your home is to you.

Bankruptcy Court Appearance

If you file for bankruptcy, you will need to attend a 341 meeting in the bankruptcy court. Many petitioners worry about this meeting, fearing a judge will question all of their financial decisions in front of a full courtroom. On the contrary, there is no judge and the purpose is to efficiently move bankruptcy cases along. With guidance from an experienced bankruptcy lawyer, you can confidently face the court appearance.

At RHM LAW LLP, we walk clients through all steps of the bankruptcy process, including the 341 meeting required for a Chapter 7 or Chapter 13 bankruptcy. Rest assured we will be right by you the entire time. Our California bankruptcy attorneys have helped thousands of clients find debt relief. We can help you.

Experienced Representation

Almost all of the bankruptcy work is done before we even get to the 341 meeting. Our attorneys will prepare your paperwork and explain the process to you in detail so you are prepared for the court appearance. When you arrive in court, you will know what to expect and why. Further, one of our experienced lawyers will be by your side, protecting your rights and interests.

What Happens at the 341 Meeting

At the 341 meeting, only three parties are generally present: you, your lawyer and the bankruptcy trustee. Your creditors and debt collection companies may attend the meeting, though they are not required to do so. In fact, most often they do not attend.

During the meeting, the bankruptcy trustee will ask you some routine questions about your finances in order to ensure accuracy of information provided on your bankruptcy petition. All you need to do is answer the questions honestly.

Can You File for Bankruptcy Multiple Times?

There are no limits to how many times you can file for bankruptcy, even if you have received a discharge before. If you want to file for bankruptcy again, you will need to wait a certain amount of time before you are able to discharge your debts again. If you file for bankruptcy before the time limits have passed, then it is likely you will not receive a full discharge.

Your ability to file another bankruptcy and thus receive a discharge are dependent on these things:

• The type of bankruptcy you have previously filed
• The type of bankruptcy you are seeking to file
• How your previous bankruptcy was finalized: either through discharge, dismissal, or dismissal with prejudice
• When you previously filed.

At RHM LAW LLP, we can evaluate your financial situation and advise whether you are eligible to file bankruptcy under any chapter of the Bankruptcy Code. From our offices in Los Angeles and Encino, our attorneys have helped thousands of clients throughout Southern California overcome financial hurdles. We are happy to meet with you in a free consultation and answer all your questions about repeat bankruptcy filings.

How Often Can Someone File for Bankruptcy?

• Previously Filed Chapter 7 and Filing Chapter 7 Again: If you received a discharge in Chapter 7, you must wait 8 years from the date you filed that case before you can file another Chapter 7 and receive a discharge. The law allows you to file Chapter 7 bankruptcy once every eight years, up to a total of three times in your life.
• Previously Filed Chapter 13 and Filing Chapter 13 Again: If you received a discharge in Chapter 13, you must wait 2 years from the date you filed that case before you can file another Chapter 13 and receive a discharge. It typically takes three to five years for a Chapter 13 to be complete. Once your first Chapter 13 is closed, you can be eligible for discharge in another Chapter 13 filing. There is no limit to how many times you can file for Chapter 13 bankruptcy. Even if you are currently ineligible to file Chapter 7, you may be able to find relief through Chapter 13 bankruptcy.
• Previously Filed Chapter 7 and Filing Chapter 13 Now: If you received a discharge in Chapter 7, you must wait 4 years from the date you filed before you proceed with a Chapter 13. This is often called a Chapter 20 bankruptcy, and can be effective for paying off priority debts or catching up on a missed mortgage.
• Previously Filed Chapter 13 and Filing Chapter 7 Now: If you received a discharge in Chapter 13, you must wait 6 years from the date you filed your previous case before you can file Chapter 7. However, the six year limit does not apply if, during the Chapter 13 you: 1) paid back all of your unsecured debts, or 2) paid back at least 70% of unsecured debts and your plan was proposed in good faith and your best effort.

As an example, you could file Chapter 7 bankruptcy to eliminate most of your unsecured debt. At some point down the road, you could file Chapter 13 bankruptcy, which would allow you to reduce certain payments, eliminate a second mortgage, removal all junior liens and pay off specific debts more quickly than without filing.

Was Your Bankruptcy Case Dismissed with Prejudice Restrictions?

A bankruptcy court can prohibit you from filing another bankruptcy case if the court dismisses your previous bankruptcy with prejudice. “Dismissed with Prejudice” typically means that you failed to obey the court’s orders or tried to abuse the bankruptcy system.

If this happens, a bankruptcy court can prohibit you from filing for another bankruptcy for a longer period of time than those specified above. A court is also able to forever preclude you from discharging debts that might have been discharged in the case that was dismissed with prejudice.

Experienced California Bankruptcy Lawyers

Have you previously filed for bankruptcy relief and are now wondering if you are eligible to file again? The attorneys at RHM LAW LLP can help. Call (213) 344-0043, or contact our firm online to arrange a free consultation.

Our bankruptcy professionals meet with clients from 7:00 a.m. to 7:00 p.m., Monday through Friday. Weekend appointments are also available.