Efficient Help With Consumer Bankruptcy Petitions

Accumulated debt can render daily life overwhelming. When shuffling the bills and loan modification negotiations does not solve the problem, and when the daily letters and phone calls from creditors become a constant stream, consumer bankruptcy plans can help you regain control of  your financial life.

If your financial difficulties are overwhelming, it is vital to understand all your legal options. Experienced legal counsel can help you  determine whether bankruptcy is appropriate, and explain how it may affect or improve your life.

Southern California Law Firm for Consumer Bankruptcy Counseling

At the Law Offices of Laurence R. Clarke, located in Los Angeles, we provide efficient bankruptcy services in a calm and businesslike atmosphere.

The services we offer range from filing bankruptcy petitions to counseling clients who wish to prevent it. Broaching the possibility of filing a bankruptcy petition is never easy. Every client is different, and not everyone qualifies. With that in mind, our knowledgeable legal staff will assess your situation, and then we will guide you through the process as effectively and efficiently as possible.

Consumer Bankruptcy: Basic Differences Between Chapter 7 and Chapter 13

When your finances, credit, or home are threatened, it is imperative to understand your various debt relief options. What may work for one may not for you. Making the wrong choice can result in a legal and financial quagmire.

If your goal is discharging or erasing debt, then you should consider Chapter 7 bankruptcy. A successful Chapter 7 petition discharges (erases) all eligible debt. Ineligible debt includes most unpaid taxes, student loans, and unpaid child support. Some of your property may be taken (repossessed) and sold (liquidated) to pay back some of your debt. Your homestead is usually protected from liquidation.

Not everyone qualifies for Chapter 7 bankruptcy, however. A debt-to-income test is applied to determine whether an individual or family qualifies for Chapter 7 bankruptcy, which is also called liquidation bankruptcy. The test is not based solely on income and assets. Instead, the bankruptcy laws require you to show you cannot reasonably pay your debts with your existing income and assets.

People who do not qualify for Chapter 7 may consider Chapter 13 bankruptcy. Chapter 13 bankruptcy is a debt reorganization plan. Under Chapter 13 bankruptcy, you must show a reliable source of income that is higher than your basic monthly expenses — so you can continue to repay some part of your total debt load.

Your Chapter 13 bankruptcy petition must propose a repayment plan that describes how you will repay your debts over a three- to five-year period.

Make an Informed Decision About Bankruptcy

Contact the Law Offices of Laurence R. Clarke to schedule a consultation with a lawyer who will give you practical and honest advice about your financial circumstances