Best Bankruptcy & Debt Lawyers in Calabasas

About Bankruptcy & Debt Law in Calabasas, United States

Bankruptcy and debt law in Calabasas, situated within the Los Angeles County in California, covers the legal processes involved when individuals or businesses can no longer repay their debts and seek relief through various bankruptcy chapters or debt restructuring. The legal framework is intended to help both debtors and creditors find a fair resolution, with federal laws primarily governing bankruptcy, although state-specific regulations may also apply.

Why You May Need a Lawyer

Legal advice in bankruptcy and debt issues can be essential for several reasons:

1. **Complexity:** Bankruptcy involves detailed paperwork, deadlines, and legal nuances that can be challenging to navigate without expert help.

2. **Asset Protection:** A lawyer can help you protect your assets within the confines of the law.

3. **Debt Negotiation:** Lawyers can negotiate with creditors on your behalf to potentially reduce the amount you owe or to formulate a feasible payment plan.

4. **Legal Representation:** During court proceedings, having representation ensures that your case is argued effectively and in compliance with all procedural requirements.

Local Laws Overview

1. **California Exemption Laws:** These laws determine the types of property that individuals can protect from creditors through bankruptcy or other debt relief services. California offers two sets of exemptions to choose from.

2. **Fair Debt Collection Practices Act (FDCPA):** This federal law protects Calabasas residents from abusive debt collection practices, involving litigation in state courts.

3. **California Debt Collection Licensing Act:** Effective from 2022, this law requires that debt collectors obtain licenses, adding a layer of protection for consumers from unscrupulous collection practices.

Frequently Asked Questions

1. What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 involves liquidation of assets to repay creditors, while Chapter 13 allows for debt repayment plans, usually over three to five years.

2. Can I keep my home if I file for bankruptcy?

California’s homestead exemption can protect your primary residence to a certain equity limit, which differs depending on various factors.

3. Will bankruptcy stop creditor harassment?

Filing for bankruptcy invokes an "automatic stay" that stops most collection actions against you immediately.

4. How does filing for bankruptcy affect my credit score?

Filing for bankruptcy will negatively impact your credit score, but it also provides an opportunity to rebuild credit over time.

5. Can all debts be discharged in bankruptcy?

No, certain debts like child support, student loans, and recent tax debts typically cannot be discharged.

6. How long does the bankruptcy process take?

Chapter 7 bankruptcy usually takes about 4-6 months, while Chapter 13 can take 3-5 years depending on the repayment plan.

7. Can I file for bankruptcy without an attorney?

While legally you can file without an attorney, it is highly recommended to seek legal counsel due to the complexities involved.

8. Will my employer find out I filed for bankruptcy?

There is no direct notification sent to your employer, but bankruptcy is a public record, and certain situations may require disclosure.

9. What happens if I do not qualify for Chapter 7 bankruptcy?

If you don't qualify for Chapter 7, you may still be able to file for Chapter 13 bankruptcy, which involves a repayment plan.

10. How do I start the bankruptcy process?

It starts with filing a petition with the bankruptcy court, including submitting schedules of assets, liabilities, income, and expenses.

Additional Resources

1. **U.S. Bankruptcy Court - Central District of California:** The federal court where you will file your bankruptcy petition.

2. **California Department of Consumer Affairs:** Offers guidance and resources on debt collection and consumer rights.

3. **Local Legal Aid Organizations:** Such as Neighborhood Legal Services of Los Angeles County (NLSLA) can provide free legal assistance if you qualify.

4. **Federal Trade Commission (FTC):** Provides extensive information regarding fair debt collection practices.

Next Steps

1. **Evaluate Your Situation:** Determine the type and amount of debt, and assess your financial standing.

2. **Consult with a Bankruptcy Attorney:** Seek advice from an experienced bankruptcy lawyer in Calabasas to discuss your options.

3. **Prepare Documentation:** Gather necessary financial documents including income statements, asset lists, and debt records.

4. **File Petition:** With the guidance of your attorney, file the bankruptcy petition and required schedules with the U.S. Bankruptcy Court.

5. **Attend Hearing:** Participate in required hearings and meet with creditors as part of the bankruptcy process.

By taking these steps, you can move toward resolving your debt issues and seek a fresh financial start under legal protection.