Best Bankruptcy Lawyers in Calabasas

About Bankruptcy Law in Calabasas, United States

Bankruptcy law in Calabasas, United States, provides a legal framework for individuals and businesses facing overwhelming debt to either eliminate or repay some or all of their obligations under the protection of the bankruptcy court. The primary types of bankruptcy filings are Chapter 7, which involves liquidation of assets to pay debts, and Chapter 13, which entails a reorganization plan to repay all or part of the debts over time. Both forms aim to offer a fresh start to those struggling financially while ensuring fair treatment of creditors.

Why You May Need a Lawyer

There are several scenarios where you might require the expertise of a bankruptcy lawyer in Calabasas:

• Complex Financial Situations: Navigating the intricacies of bankruptcy law can be challenging, especially in cases involving significant assets, multiple creditors, or complicated income structures.
• Legal Representation: A lawyer can provide representation in court proceedings and negotiations with creditors to ensure your interests are protected.
• Filing Accuracy: Ensuring accurate completion and submission of all necessary legal documents can prevent delays, additional costs, or case dismissals.
• Eligibility Evaluation: A lawyer can help determine whether you qualify for Chapter 7 or Chapter 13 bankruptcy and the benefits and drawbacks of each.
• Creditor Harassment: Legal assistance may be needed to deal with aggressive creditors who violate automatic stay provisions.

Local Laws Overview

Bankruptcy law in Calabasas is governed by federal statutes, primarily the U.S. Bankruptcy Code. Key local aspects to consider include:

• State Exemptions: California allows debtors to choose between the federal exemption system and California's System 1 or System 2 exemption lists, which protect specific assets from liquidation.
• Mediation Requirements: Certain jurisdictions in California may require mediation before proceeding with bankruptcy to explore alternatives.
• Means Test: Local income standards are used to determine eligibility for Chapter 7 filings. Debtors with income above the median may need to file under Chapter 13.
• Credit Counseling: Debtors must complete credit counseling from an approved agency before filing for bankruptcy.
• Debtor Education: After filing, debtors must complete a financial management course to receive a discharge of their debts.

Frequently Asked Questions

1. What types of bankruptcy are available in Calabasas?

Chapter 7 and Chapter 13 are the most common types of bankruptcy available. Chapter 7 involves liquidation, while Chapter 13 focuses on debt reorganization and repayment plans.

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

You must pass a means test, which compares your income to California's median income levels. If your income is below the median, you likely qualify for Chapter 7.

3. What assets can I keep if I file for bankruptcy?

This depends on the exemptions you choose. California offers System 1 and System 2, each protecting different assets such as your home, vehicle, and personal belongings.

4. How long does the bankruptcy process take?

Chapter 7 typically takes about 4-6 months from filing to discharge. Chapter 13, however, involves a 3-5 year repayment plan.

5. Will bankruptcy eliminate all my debts?

Bankruptcy can discharge many types of unsecured debts like credit cards and medical bills, but some debts, such as student loans and certain taxes, may not be dischargeable.

6. How will bankruptcy affect my credit score?

Bankruptcy can significantly impact your credit score, potentially staying on your credit report for up to 10 years. However, it also offers a fresh start to rebuild your credit.

7. Can I lose my home if I file for bankruptcy?

It depends on the amount of equity in your home and the exemptions you use. Consulting with a lawyer can help you understand your specific situation.

8. What is an automatic stay?

An automatic stay stops most collection activities against you once you file for bankruptcy, offering temporary relief from creditors.

9. Do I need to hire a lawyer to file for bankruptcy?

Although it's possible to file without a lawyer, having legal assistance can ensure that the process is managed correctly and can increase the likelihood of a successful outcome.

10. How much does it cost to file for bankruptcy?

Filing fees for Chapter 7 are typically around $335, while Chapter 13 fees are about $310. Attorney fees vary based on the complexity of your case.

Additional Resources

Consider the following resources for further assistance:

• United States Bankruptcy Court, Central District of California: The official website provides forms, rules, and filing information.
• Legal Aid Organizations: Local legal aid societies can offer free or low-cost assistance for qualifying individuals.
• Approved Credit Counselors: A list of approved credit counseling agencies can be found on the U.S. Trustee Program’s website.
• California State Bar: Provides a referral service to find qualified bankruptcy attorneys.

Next Steps

If you need legal assistance with bankruptcy, consider taking the following steps:

• Consult a Lawyer: Schedule a consultation with a qualified bankruptcy attorney in Calabasas to discuss your situation and options.
• Gather Financial Information: Collect all relevant financial documents, including income, expenses, assets, and debts.
• Complete Credit Counseling: Enroll in and complete a credit counseling session with an approved agency before filing your case.
• File the Necessary Forms: Work with your attorney to accurately complete and submit the required bankruptcy forms to the court.
• Attend Required Hearings: Participate in any required court hearings or meetings with creditors as scheduled.