Best Bankruptcy Lawyers in Novato

About Bankruptcy Law in Novato, United States

Bankruptcy law in Novato, United States refers to a set of federal laws and local rules that allow individuals and businesses who are unable to repay their debts to seek relief through a legal process. The main purpose of bankruptcy is to provide honest debtors with a financial fresh start while ensuring fairness to creditors. In Novato, which is located in Marin County, bankruptcy cases are filed in the United States Bankruptcy Court for the Northern District of California. The two most common types of bankruptcy for individuals are Chapter 7, known as "liquidation," and Chapter 13, known as "reorganization." For businesses, Chapter 11 bankruptcy is most often used.

Why You May Need a Lawyer

Bankruptcy can be a complex and stressful legal process. You may benefit from hiring a bankruptcy lawyer in situations such as:

• You are overwhelmed by debt and cannot keep up with payments
• Your wages are being garnished or you are facing foreclosure
• You have received notice of a lawsuit or court judgment from a creditor
• You own significant assets and are concerned about protecting them
• You want to stop collection calls and harassment from creditors
• You are unsure which type of bankruptcy is right for your situation
• You have complex debts, such as tax obligations or domestic support

A bankruptcy lawyer can help you understand your rights, assess your eligibility, prepare and file your paperwork, represent you in court, and protect your interests throughout the process.

Local Laws Overview

Bankruptcy in Novato is governed primarily by federal law, specifically the United States Bankruptcy Code. However, there are important local aspects to be aware of:

• Bankruptcy cases in Novato are filed with the United States Bankruptcy Court for the Northern District of California. Local court rules and procedures will apply.
• Marin County has its own exemptions under California law, which play a major role in determining what property you can keep during bankruptcy. California offers two sets of exemptions, and debtors may choose the set that best protects their assets.
• Credit counseling from an approved agency is required before filing, and debt education is required after filing but before discharge.
• Residents must provide proof of income, a list of all debts and assets, and detailed financial history as part of the filing process.
• There are specific timelines and procedures for the "341 meeting" (meeting of creditors) which usually takes place in San Francisco or remotely.

Frequently Asked Questions

What types of bankruptcy are available in Novato?

The most common types are Chapter 7 and Chapter 13 for individuals. Chapter 11 is typically used for businesses. Each type has different eligibility requirements and outcomes.

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

Often, you may keep essential assets like your home or car if you remain current on payments and they are protected by California exemptions. Your lawyer can advise based on your specific situation.

Will filing for bankruptcy stop creditors from contacting me?

Yes, an automatic stay takes effect immediately after filing, which stops most creditors from calling, suing, or garnishing your wages.

Does bankruptcy eliminate all types of debt?

No. Certain debts such as child support, alimony, most student loans, recent taxes, and court fines are generally not dischargeable.

How does bankruptcy impact my credit score?

Bankruptcy will lower your credit score and remain on your credit report for up to 10 years for Chapter 7 or 7 years for Chapter 13. However, many people can rebuild their credit over time.

How long does the bankruptcy process take?

A Chapter 7 bankruptcy typically takes about four to six months. A Chapter 13 payment plan lasts three to five years. The duration depends on your case’s complexity.

What is a "means test" and do I need to take it?

The means test determines whether you qualify for Chapter 7 bankruptcy based on your income, expenses, and family size compared to California’s median income.

Can I file bankruptcy without a lawyer?

Yes, but it is not recommended. Bankruptcy law is complicated, and errors can lead to loss of assets, case dismissal, or fraud accusations. Legal advice ensures your interests are protected.

Will everyone know I filed for bankruptcy?

Bankruptcy filings are public records, but they are not typically published in newspapers and are mainly accessed by involved parties or through court records.

Does bankruptcy protect cosigners of my loans?

It depends on the type of bankruptcy. Chapter 13 offers more protection for cosigners than Chapter 7. Discuss your specific loan agreements with an attorney.

Additional Resources

If you need more information or assistance regarding bankruptcy in Novato, consider these helpful resources:

• United States Bankruptcy Court for the Northern District of California - Provides forms, procedures, and local rules.
• Legal Aid of Marin - Offers legal assistance and pro bono services to qualifying residents facing financial difficulties.
• California Department of Consumer Affairs - Offers consumer guides on filing for bankruptcy and managing debt.
• National Association of Consumer Bankruptcy Attorneys - Helpful for finding qualified local bankruptcy attorneys.
• Approved Credit Counseling Agencies - These agencies provide required counseling before filing.

Next Steps

If you are considering bankruptcy in Novato, here is a suggested path forward:

• Gather all relevant financial documents, including bills, account statements, income records, and information on your assets and debts.
• Consult a licensed bankruptcy attorney in Novato who is familiar with local rules and can advise you on your options.
• Complete the required credit counseling course with an agency approved by the U.S. Trustee.
• Carefully review your options with your attorney, including alternatives to bankruptcy.
• If you choose to file, work closely with your lawyer to complete all forms accurately and attend the meeting of creditors as scheduled.
• Follow through with debtor education requirements and comply with any court orders to ensure your debts are discharged.

Taking these steps will help you protect your rights and start on the path to financial recovery.