Best Bankruptcy Lawyers in Bakersfield

About Bankruptcy Law in Bakersfield, United States

Bankruptcy law in Bakersfield, California, is part of the federal legal system, primarily governed by the United States Bankruptcy Code. Bankruptcy is a legal process that helps individuals and businesses struggling with debt to either eliminate their debts or create a plan to repay them. In Bakersfield, bankruptcy cases are handled through the United States Bankruptcy Court for the Eastern District of California. Filing for bankruptcy can provide relief from creditor actions such as wage garnishments, collection calls, repossessions, and foreclosures. Common types of bankruptcy filed in Bakersfield include Chapter 7, which involves liquidation of non-exempt assets, and Chapter 13, which allows for debt repayment plans.

Why You May Need a Lawyer

Bankruptcy law can be complex and overwhelming, especially if you are unsure about your options or the consequences of each type of bankruptcy. Consulting with a bankruptcy attorney in Bakersfield is highly recommended in several situations, such as:

• When you are facing foreclosure or repossession of your property
• If your wages are being garnished due to unpaid debts
• If you have received a lawsuit or collections notice
• When you are unsure if bankruptcy is right for your financial situation
• If you need guidance on the differences and eligibility between Chapter 7 and Chapter 13 bankruptcy
• If you need to protect certain assets from liquidation
• If you have complex assets or business interests
• If you want to avoid costly legal mistakes during the filing process

A local bankruptcy attorney can provide personalized advice based on your circumstances and help you achieve the best possible outcome.

Local Laws Overview

While bankruptcy is governed by federal law, certain local rules and California state laws can influence bankruptcy proceedings in Bakersfield. Some key aspects include:

• Exemptions: California law allows you to choose between two sets of exemptions (System 1 and System 2) that determine what property you can keep. These exemptions may protect your home, car, retirement accounts, and personal belongings.
• Means Test: To qualify for Chapter 7 bankruptcy, you must pass the means test, which compares your income to the median income for similar households in California.
• Mandatory Credit Counseling: All filers must complete credit counseling from an approved agency before filing for bankruptcy and a debtor education course before discharge.
• Filing Location: Bankruptcy cases for Bakersfield residents are handled by the United States Bankruptcy Court for the Eastern District of California, Fresno Division.
• Required Documentation: Bakersfield filers must submit extensive documentation about their income, assets, debts, and expenses.
• Homestead Exemption: California provides generous homestead exemptions, which may allow you to protect a significant amount of home equity in bankruptcy proceedings.

Frequently Asked Questions

What types of bankruptcy are available in Bakersfield?

The most common types are Chapter 7, which involves liquidating non-exempt assets to pay creditors, and Chapter 13, which allows individuals to reorganize debts and pay them off over three to five years.

How do I know if I qualify for Chapter 7 bankruptcy?

Eligibility depends on your income compared to the California median, your expenses, and your total debt. A means test calculation determines if you qualify for Chapter 7 or must consider Chapter 13.

Can I keep my house or car if I file for bankruptcy?

California exemptions may allow you to keep your home and vehicle, especially if you have little or no equity. Determining what you can keep depends on your unique financial situation and the exemption system you use.

Will filing for bankruptcy stop collection calls and lawsuits?

Yes. Filing for bankruptcy triggers an automatic stay, which stops most collection activities, lawsuits, wage garnishments, and foreclosures while your case is pending.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy will remain on your credit report for up to 10 years, while a Chapter 13 bankruptcy stays for up to 7 years. The impact on your score lessens over time as you rebuild credit.

Can bankruptcy erase all types of debt?

Not all debts are dischargeable. Bankruptcy can eliminate most unsecured debts like credit cards and medical bills. However, you typically cannot discharge child support, alimony, recent taxes, or most student loans.

Do I need to go to court if I file for bankruptcy in Bakersfield?

Most filers are required to attend a meeting of creditors, known as the 341 meeting. In rare cases, you may need to appear in court for additional hearings.

How much does it cost to file for bankruptcy?

There are court filing fees and attorney fees, though some costs may be waived if you qualify based on income. Attorneys may offer payment plans to make the process more affordable.

How long does the bankruptcy process take?

A Chapter 7 case typically takes three to six months from filing to discharge. Chapter 13 cases last three to five years due to the repayment plan requirement.

Where do I file for bankruptcy in Bakersfield?

You will file your bankruptcy petition with the United States Bankruptcy Court for the Eastern District of California, Fresno Division, which covers Bakersfield and surrounding areas.

Additional Resources

Residents of Bakersfield seeking help with bankruptcy can turn to the following resources for information and assistance:

• Kern County Law Library - Offers legal resources and guidance on bankruptcy laws and procedures
• United States Bankruptcy Court for the Eastern District of California - Provides local rules, filing forms, and case information
• Legal Aid organizations such as Greater Bakersfield Legal Assistance - May provide free or low-cost legal help for qualified residents
• California Department of Consumer Affairs - Offers information on debt relief and consumer rights
• Local bar associations - Can help you find qualified bankruptcy attorneys

Next Steps

If you are considering bankruptcy in Bakersfield, the first step is to gather information about your financial situation, including your debts, assets, and monthly expenses. Next, speak with a qualified bankruptcy attorney in your area who can explain your options and guide you through the process. Check whether you are eligible for Chapter 7 or Chapter 13, and be prepared to complete required credit counseling. Make use of local resources and support organizations as you move forward. Taking action early and seeking professional legal advice can help you achieve the best possible outcome for your financial future.