Best Bankruptcy Lawyers in Whittier

About Bankruptcy Law in Whittier, United States

Bankruptcy is a legal process designed to help individuals and businesses who are unable to repay outstanding debts. In Whittier, which is located in Los Angeles County, California, those facing overwhelming debt can seek relief through the federal bankruptcy courts. The process is governed by federal law, specifically the United States Bankruptcy Code, but local rules and California exemptions also impact each case. Bankruptcy offers options for a fresh financial start or structured debt repayment, often stopping debt collection efforts and protecting essential assets.

Why You May Need a Lawyer

Bankruptcy can be a complex and intimidating process. People in Whittier may need an attorney’s help for various reasons, including:

• Understanding which type of bankruptcy (Chapter 7, Chapter 13, or another type) is best for their situation
• Filing the required paperwork and meeting court deadlines
• Protecting assets like your home, car, or retirement accounts under California exemptions
• Stopping creditor harassment and lawsuits
• Managing complicated situations like small business debt, foreclosure, or divorce
• Navigating challenges if previous bankruptcy cases were filed
• Handling non-dischargeable debts or debts involving fraud allegations
• Dealing with creditors who challenge the bankruptcy or seek to lift the automatic stay

Lawyers can provide valuable guidance, prevent costly mistakes, and increase your chances of successful debt relief.

Local Laws Overview

While bankruptcy is governed by federal law, certain aspects specific to Whittier and the broader California area are important to consider:

• California Bankruptcy Exemptions: California provides two sets of exemptions for people filing bankruptcy, allowing debtors to protect certain property such as home equity, vehicles, retirement accounts, and personal items. Debtors must choose one set of exemptions and cannot mix between the two.
• Central District of California: Whittier residents file bankruptcy in the Central District of California, which has its own local bankruptcy court rules, forms, and procedures. Familiarity with these local requirements is crucial.
• Community Property Rules: California’s community property laws affect married filers, potentially including a spouse’s assets and debts even if only one partner files for bankruptcy.
• Homestead Exemption: The California homestead exemption may protect a large portion of home equity, which can be especially important in Los Angeles-area real estate markets.
• Means Test: To file for Chapter 7 bankruptcy, filers must pass a means test based on their income and family size compared to California’s median levels.

Understanding these local elements is essential for successfully navigating the bankruptcy process in Whittier.

Frequently Asked Questions

What types of bankruptcy are available to individuals in Whittier?

The most common types for individuals are Chapter 7, which eliminates most unsecured debts, and Chapter 13, which involves a repayment plan over 3 to 5 years. Some may qualify for Chapter 11, but it is less common for personal cases.

Will I lose my home or car if I file for bankruptcy?

Many people are able to keep their home and car if the equity is protected under California’s exemption laws. An attorney can help determine which assets are at risk.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while a Chapter 13 case may stay for up to 7 years. However, many people begin rebuilding credit soon after filing.

Can all types of debt be discharged in bankruptcy?

Not all debts can be wiped out. Common non-dischargeable debts include most student loans, child support, alimony, certain taxes, and debts from fraud or malicious injury.

Will bankruptcy stop creditor harassment and wage garnishments?

Yes. When you file bankruptcy, an automatic stay goes into effect which stops most collection actions, lawsuits, foreclosures, and wage garnishments.

How much does it cost to file for bankruptcy?

There are court filing fees and, if you hire an attorney, additional attorney fees. Many lawyers offer payment plans and can explain all potential costs up front.

Do I have to go to court in Whittier?

Most filers must attend a brief creditors’ meeting called a 341 Meeting held by the bankruptcy trustee, not a judge, most often at a courthouse or via teleconference.

How do California’s exemptions work?

California allows you to choose between two sets of exemptions that protect certain property from being sold to pay creditors. Your attorney can help you select the best option for your situation.

Will bankruptcy affect my spouse if I file alone?

If you are married, community property rules may impact both spouses' assets and debts, but your spouse does not have to file with you. It is important to discuss impacts with a local attorney.

Can I file for bankruptcy more than once?

Yes, but there are time limits between filings. For example, if you previously received a Chapter 7 discharge, you must wait 8 years before filing Chapter 7 again.

Additional Resources

Here are some resources that can help if you are seeking legal guidance or support with bankruptcy in Whittier:

• Central District of California Bankruptcy Court: Provides information on filing procedures, local rules, and court locations.
• Los Angeles County Bar Association Lawyer Referral Service: Offers referrals to bankruptcy attorneys and free legal consultation events.
• Legal Aid Foundation of Los Angeles: Provides free or low-cost legal assistance for qualified individuals.
• California Department of Consumer Affairs: Offers guidance on consumer rights, debt relief, and bankruptcy basics.
• National Foundation for Credit Counseling: Delivers credit counseling and financial education, often a required step before filing.

Next Steps

If you are considering bankruptcy in Whittier, take these important steps:

1. Gather information about your debts, assets, income, and expenses.
2. Consult with a knowledgeable bankruptcy attorney in Whittier or Los Angeles County to review your options and protect your interests.
3. Complete a required credit counseling course from an approved agency.
4. Follow your attorney’s guidance to prepare and file bankruptcy forms and supporting documents.
5. Attend the required creditors’ meeting with the bankruptcy trustee.
6. Work with your attorney to respond to any court communications and complete any additional requirements.
7. Once your bankruptcy is complete, focus on rebuilding your financial health and credit.

Professional legal advice is highly recommended to ensure you make the best decisions for your circumstances and to avoid pitfalls in the bankruptcy process.