Los Angeles, CA Bankruptcy Defense Lawyers
Understanding Bankruptcy Defense
Bankruptcy can be a daunting and stressful process. If you’re facing financial difficulties, you’re not alone. Many individuals and businesses in Los Angeles find themselves overwhelmed by debt and unsure of their options. That’s where we come in. At Delancey Street, we specialize in bankruptcy defense, providing expert guidance and support to help you navigate this challenging time.
What is Bankruptcy Defense?
Bankruptcy defense involves representing and protecting the rights of individuals or businesses facing bankruptcy proceedings. Our goal is to help you achieve the best possible outcome, whether that means discharging your debts, reorganizing your finances, or protecting your assets.
Types of Bankruptcy:
- Chapter 7: Often referred to as “liquidation bankruptcy,” Chapter 7 allows individuals to discharge most of their debts. However, you may need to sell non-exempt assets to pay creditors.
- Chapter 13: Known as “reorganization bankruptcy,” Chapter 13 allows individuals to create a repayment plan to pay off debts over three to five years while keeping their assets.
- Chapter 11: Primarily for businesses, Chapter 11 allows companies to reorganize their debts and continue operating while repaying creditors.
Common Concerns in Bankruptcy
Will I Lose Everything?
One of the most common fears about bankruptcy is the possibility of losing everything. It’s a natural concern, but it’s important to understand that bankruptcy laws are designed to help you, not punish you. In many cases, you can keep essential assets like your home, car, and personal belongings. California’s bankruptcy exemption laws play a crucial role here.
California Exemptions:
- Homestead Exemption: Protects a certain amount of equity in your primary residence.
- Personal Property Exemption: Covers items like clothing, household goods, and tools of the trade.
- Vehicle Exemption: Protects a certain amount of equity in your vehicle.
How Will Bankruptcy Affect My Credit?
Another major concern is the impact of bankruptcy on your credit score. While it’s true that bankruptcy will appear on your credit report for several years, it’s also an opportunity for a fresh start. Many people find that their credit score begins to improve shortly after their debts are discharged.
Credit Impact:
- Chapter 7: Stays on your credit report for up to 10 years.
- Chapter 13: Stays on your credit report for up to 7 years.
The Bankruptcy Process
Filing for Bankruptcy
The process of filing for bankruptcy can be complex and involves several steps. Here’s a general overview:
- Consultation: Meet with a bankruptcy attorney to discuss your financial situation and determine the best course of action.
- Credit Counseling: Complete a mandatory credit counseling session from an approved provider.
- Filing the Petition: Your attorney will help you prepare and file the bankruptcy petition with the court.
- Automatic Stay: Once your petition is filed, an automatic stay goes into effect, halting all collection actions against you.
- Meeting of Creditors: Attend a meeting with your creditors, where they can ask questions about your financial situation.
- Discharge or Repayment Plan: Depending on the type of bankruptcy, your debts will either be discharged, or you’ll begin making payments under a court-approved plan.
Legal Citations and Case Law
Understanding the legal framework and relevant case law is essential in bankruptcy defense. Here are a few key cases:
- Butner v. U.S.: Established that property interests are determined by state law unless a federal interest requires a different result.
- In re Integrated Telecom Express, Inc.: Addressed the requirement of good faith in filing a bankruptcy petition.
- Pacor, Inc. v. Higgins: Defined the test for determining whether a civil proceeding is related to bankruptcy.
The Importance of Professional Help
Why Choose Delancey Street?
Navigating bankruptcy without professional help can be risky. At Delancey Street, we bring years of experience and a deep understanding of bankruptcy law to the table. Our team is dedicated to providing personalized, compassionate, and effective legal representation.
Benefits of Hiring a Bankruptcy Lawyer:
- Expert Guidance: We help you understand your options and make informed decisions.
- Legal Protection: We protect your rights and advocate on your behalf.
- Stress Relief: We handle the complex legal procedures, so you don’t have to.
Client Stories
Consider the case of John Doe, a small business owner in Los Angeles. Facing overwhelming debt and potential foreclosure, John turned to us for help. We guided him through a Chapter 11 bankruptcy, allowing him to reorganize his debts and keep his business afloat. Today, John’s business is thriving, and he’s debt-free.
Conclusion
Facing bankruptcy can be overwhelming, but you don’t have to go through it alone. At Delancey Street, we are committed to helping you find the best path forward. Whether you’re considering Chapter 7, Chapter 13, or Chapter 11 bankruptcy, our experienced team is here to provide the support and guidance you need.
Call to Action:
Don’t wait until it’s too late. Contact us today for a free consultation and take the first step towards financial freedom. Let us help you navigate the complexities of bankruptcy and find the best solution for your unique situation.