When it comes to debt for many it is a touchy subject, but if you are struggling to pay off your loans and don’t foresee yourself doing so in the near future perhaps you should consider filing for bankruptcy. If you are located in California and are seeking to file for bankruptcy it is highly advised that you locate a bankruptcy attorney in Long Beach CA. If you are filing for bankruptcy as an individual and not a company a bankruptcy attorney will guide you through the process of filing for Chapter 13 bankruptcy and will advise you beforehand if you are eligible to do so. If eligible for chapter 13 bankruptcy you attorney will begin filing a petition with your areas bankruptcy court where you the debtor has a place of residence. Your bankruptcy attorney will also assist you with filing with the court, scheduling your assets and liabilities, documenting your current income and expenses, scheduling your unexpired leases and executory contracts and recording a statement of all of your financial affairs. It is of great importance that this paperwork to the best of your knowledge is filled out correctly. Possessing a bankruptcy attorney helps ensure that the all the necessary paperwork is filed out correctly, and prevents any possible mishaps that may occur without an attorney from negatively affecting your filing for bankruptcy.

What is Bankruptcy?

There are many different chapters of bankruptcy and it is important that you file for the correct chapter of bankruptcy to help your case, which is why it is beneficial to have a bankruptcy attorney. If you are an individual filing for bankruptcy or a self-employed business your bankruptcy attorney would file for chapter 13 bankruptcy. However, if you are a business your attorney would file your bankruptcy claim under chapter 7 to liquidate your company or chapter 11 to reorganize your company’s debt. If you are an individual filing under chapter 13 bankruptcy you the debtor will have to fall under certain requirements to be eligible for Chapter 13 bankruptcy. To be eligible for chapter 13 bankruptcy relief your unsecured debts must be less than $394,725 and secured debts less than $1,184,200, these amounts are adjusted periodically and may change at the point you require a bankruptcy lawyer. For those unaware between the difference between a secured and unsecured debt it relates to the type of loan you acquired. A secured loan requires borrowers to offer collateral while an unsecured loan does not. If you do prove to be eligible for chapter 13 bankruptcy you will be set planned payments that are within your capabilities and reschedule secured debts (other than the mortgage of your primary residence) and extend them over the life of the chapter 13 plan. Due to the reason previously stated Chapter 13 bankruptcy can also save an individual’s home from being foreclosed on. For those who qualify and are in need of the financial relief that chapter 13 bankruptcy offers it may be beneficial to mention attempting to file for Chapter 13 with a bankruptcy lawyer.

What to Bring to a Bankruptcy attorney?

When attending your first consultancy meeting with a bankruptcy attorney it may be beneficial to bring all of your financial documents, list of creditors you owe money , documentation of your outstanding loans, and all information related to real property that you own. It may also be helpful to bring documentation of any big property items that are liable to be repossessed such as vehicles.  Likewise if you are knowledgeable of the value of these large items or have documentation of their cost it will benefit you to bring this documentation to your consultation. It is also important to write down and bring any questions you may have about filing for bankruptcy so you and your attorney are on the same page on what outcome you desire from these proceedings. Your attorney wants to assist you during this time, and help stabilise your financial situation, however in order to do so they need to have a full understanding of your debt and the assets that you possess. Providing them with all of your knowledge on both aspects may he outcome of your case.