California Bankruptcy Laws

Explanation of the Current Bankruptcy Laws in California

There has been much talk about the major changes made to bankruptcy laws a few years ago and how they affect individuals and businesses considering bankruptcy as a debt relief option. For straightforward answers to all your bankruptcy questions, consult with an experienced Los Angeles bankruptcy lawyer.

At RHM LAW LLP, our bankruptcy lawyers have helped thousands of people and small businesses in the Los Angeles area find debt relief through Chapter 7 and Chapter 13 bankruptcy. We stay current with all legislation pertaining to bankruptcy and welcome the opportunity to discuss how the laws impact your situation.

Questions? Contact our firm today to schedule your 30-minute risk-free consultation.

Understanding the Bankruptcy Process: A Step-by-Step Guide

Navigating the bankruptcy process can be daunting, but having a clear understanding of each step can empower you to make informed decisions. At Resnik Hayes Moradi LLP, we believe that knowledge is crucial to overcoming financial challenges. Here’s a simplified overview of what to expect when filing for bankruptcy in California:

1. Initial Consultation: Schedule a meeting with our experienced attorneys to discuss your financial situation and explore your options.
2. Gathering Documentation: Compile necessary financial documents, including income statements, debts, and assets, to help us build your case.
3. Credit Counseling: Complete a mandatory credit counseling course to assess your financial situation and explore alternatives to bankruptcy.
4. Filing Your Petition: We will assist you in filing your bankruptcy petition with the court, ensuring all forms are completed accurately.
5. Automatic Stay: Upon filing, an automatic stay goes into effect, halting most collection actions against you, providing immediate relief.
6. Meeting of Creditors: Attend a meeting where creditors can ask questions about your financial situation, guided by our legal team.
7. Discharge of Debts: After completing the process, you may receive a discharge of eligible debts, offering a fresh financial start.

Understanding these steps can help reduce anxiety and prepare you for what lies ahead. Our dedicated team at Resnik Hayes Moradi LLP is here to support you every step of the way, ensuring you feel confident and informed throughout the bankruptcy process. Contact us today to begin your journey towards financial recovery!

You Can Still File Bankruptcy in CA

It is true that in October 2005, Congress passed sweeping changes to the bankruptcy laws. Under these laws, people who wish to discharge unsecured debts through Chapter 7 bankruptcy must pass a “means test,” which takes into account an applicant’s income, expenses, and total debt. While these laws make it more difficult to file Chapter 7 bankruptcy, many people and businesses still qualify for this type of relief.

If you do not qualify for Chapter 7 bankruptcy, you may still file for Chapter 13 bankruptcy. This debt reorganization plan is designed for applicants with an income who wish to protect certain assets or pay a percentage of what they owe to creditors.

The 2005 laws also require applicants to participate in a government-approved credit counseling program prior to filing bankruptcy. Before you can file a bankruptcy case and any debt is eliminated, you must receive a credit counseling certificate from an approved agency. Before completion of your case, you must complete a simple financial management course. Our attorneys can help you find an approved agency and financial management course to fulfill these requirements.

Trusted Answers to All Your Bankruptcy Questions

At RHM LAW LLP, we want to help you find a debt relief solution that makes sense for you. During a 30-minute risk-free consultation, one of our experienced bankruptcy attorneys will evaluate your situation and discuss whether bankruptcy is a good option for you. We will explain the California new bankruptcy laws, identify exemptions, and address any questions and concerns you have.

To arrange an appointment, call us at (213) 344-0043 and speak to our Los Angeles bankruptcy attorneys. From our offices in Los Angeles and Encino, we serve clients in San Fernando Valley and throughout Los Angeles, Riverside, San Bernardino, and Orange Counties.