Bankruptcy Legal Help Offered By Los Angeles County Bankruptcy Lawyer For Debt Relief

By Mark Marabut


There are many people who are irresponsible in taking care of financial matters. They use credit cards for living expenses, including food. Bankruptcy attorneys in Los Angeles County save the homes they own from foreclosure.

The Chapter 7 is the type that erases most of the debt. It helps individuals and families to make a new start. Some debt, however, cannot be excused by a Chapter 7.

Child support, taxes and student loans are among those. The petitioner cannot lose a home when going bankrupt. It is one of the things a person is able to keep.

A car is exempt too. In the case of a couple, two may be kept. Credit card debt, non-secured loans and utilities are excused. The Chapter 7 absolves them of these types of debt.

There are specific parameters that must be met to qualify. In the first meeting with an attorney, he or she makes a determination as to their eligibility. If found eligible, they will have a second appointment to fill out all paperwork.

Using that information, the lawyer files a motion in federal court. A judge reviews the case. He or she will decide whether to accept the petition.

A retainer is an amount of money paid to the attorney. There is a filing fee paid to the court. When a judge accepts the petition, the client is absolved of debt.

There is another choice. It is the Chapter 13. This type gives the client time to make payments. It totals all debt and a plan is made to repay it, usually within five years. The client must be earning a set amount of money that is sufficient to pay two things. First, he must earn enough to make payments to cover the debt.

The debtor must have enough left after mandated payments to support himself. It must cover rent, utilities and food. All amounts required will be figured out by the attorney.

At the time that the federal judge grants the petition, all interest will stop. No more will be added to the debts. The Chapter 13 type of bankruptcy give the client a chance to clear his or her debt.




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