The Mellor Law Firm, APLC

California Real Estate, Construction, Bankruptcy, Foreclosure and Business Litigation Lawyers

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Call: (951) 221-4744

  • Our Firm
  • Attorney Profile
  • Practice Areas
    • Real Estate Law
    • Construction Law Attorney
    • Foreclosures
    • Business Law
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
    • Contract Disputes
    • Insurance
    • Loan Modifications
    • Personal Injury & Wrongful Death
  • Case Handling
  • Clients
  • Blog
  • Contact

What to Know When Filing For Bankruptcy

November 26, 2018 by Mark Mellor

 

Bankruptcy is one of the most misunderstood actions that can be taken regarding your overall socioeconomic status, filing for bankruptcy could either prove to be one of the best, or worst things you’ve ever done. Indeed, while many people believe it to be an easy way out of a sticky financial situation, depending on your particular circumstances, it can actually cause more harm than good.

Luckily, there is more than enough information to help you decide whether filing for bankruptcy is right for you. For instance, by asking yourself the following questions, you will have a much better idea about whether you should be filing for bankruptcy:

  • Am I only making minimum payments on my credit cards?
  • Am I being called or even harassed by bill collectors?
  • Do I become anxious at the thought of sorting out my finances?
  • Am I using credit cards to pay for necessities?
  • Have I been considering debt consolidation?
  • Am I even sure as to how much I owe?

If you answered yes to more than two of these questions, you may be a good candidate for bankruptcy. Either way, filing for bankruptcy is a complex process that is only for those who owe much more than they can pay and see no relief from their circumstances in the foreseeable future. And finding the best bankruptcy lawyer is almost as important as making the decision itself.

Are You Eligible?

Now that you have determined you wish to file for bankruptcy, you must find out if you are legally eligible to do so. On the one hand, filing Chapter 7 is best for those who have low income and relatively no assets as well as those whose discharged debt is in excess of property sold. On the other hand, if you still need debt relief, but, don’t qualify to file for Chapter 7, because you have an excess of nondischargeable debts such as child support or alimony, or have fallen too far behind on mortgage (or payments for some other type of property) and need help managing your finances to avoid losing the property, a Chapter 13 filing may be more appropriate. Either way, it is important to understand that bankruptcy is not an option for everyone and the different categories exist for a reason.

Chapter 7 vs Chapter 13

Let’s review a few of the general differences between these two types of bankruptcy. As mentioned, Chapter 7 is more for those with low income and very few assets. Chapter 7 is essentially considered a way to give those who are struggling (in working or lower class) a method of starting over. Chapter 7 focuses on the liquidation of assets while Chapter 13 focuses on reorganizing them and repaying your creditors back.

Chapter 7 can be for individuals, or business entities, while Chapter 13 is for individuals only. Moreover, while a Chapter 7 discharge tends to take just a few months, a Chapter 13 can take up to a few years to complete and receive your discharge notification. Lastly, one of the most important differences between these two types of bankruptcies is that Chapter 7 does not allow for a way to catch up on missed payments to avoid foreclosure and while Chapter 13 does make this allowance, it also requires making regular payments to an appointed trustee and can even require the repayment of previous unsecured debts.

How to File

Now that you have learned the differences in the types of bankruptcies, you are finally ready to file. First of all, you will only be filing for bankruptcy under one of two circumstances: either you voluntarily file on your own or you are essentially forced to do so by a judge, at the request of your creditors. At any rate, if you are filing on your own, you will want to start with taking the following actions:

  • Compile Financial Records – The powers that be won’t just take your word for it, you will need proof. Start the process by compiling all the evidence of your financial situation.
  • Credit Counseling – Next, you are required to enroll in credit counseling within 180 days before filing. You must obtain counseling from an approved provider to ensure you fully understand the process before moving forward.
  • File Your Petition – Just because you want to file for bankruptcy doesn’t mean it will be granted. You must file your petition and follow through with the process in order to receive a judgment in your favor.
  • Hire an Attorney – As mentioned, filing for bankruptcy is a long, complicated process. Hire an attorney, as opposed to an unlicensed paralegal, to assist you in that process. An attorney will be more expensive, but, will not make common mistakes that an unlicensed person would make

Overall, filing for bankruptcy is an arduous process that you need to be sure about before embarking upon it. Although it can certainly be an essential step in reviving your financial status, it can also be an uphill battle filled with obstacles and pitfalls along the way. Either way, by hiring a highly qualified bankruptcy lawyer, you will be well on your way to completing the process devoid of many of the unforeseen issues that plague those who attempt to do so without the help of a qualified attorney.

For expert advice on bankruptcy, contact The Mellor Law Firm at (951) 221-4705 to speak to an experienced bankruptcy attorney.

Filed Under: Short Sale News

Call Us: 951-222-2100

Consultations available in-office or over
the phone. Speak to one of our leading attorneys in California today.

Recent News

How a Business Attorney Can Help You Sell Your Business in California

May 31, 2023 By Mark Mellor

The opportunity to sell your business can either be exciting or stressful—or both all at once! You want to make sure you get the best deal possible so you can move on to bigger and better things. That’s why it’s important to have business lawyers on your side who know the ins and … Read More...

Dealing With A Contract Breach? These Are The First Steps You Need To Take

April 24, 2023 By Mark Mellor

Whether you have knowingly or accidentally breached a contract, it is important to take immediate action. Failing to do so could result in serious legal consequences and expensive fines.  As contract dispute attorneys, we've compiled the first steps you need to take when you … Read More...

What Are The Recent Construction Laws And Changes: How Do They Impact You As A Contractor

April 19, 2023 By Mark Mellor

Effective 2022 and 2023, several new regulations have been passed in California for the construction industry, including increased safety measures, environmental protection rules, and permit fines. Learn how these construction laws affect your company and how to avoid any fines … Read More...

Follow Mellor Law Firm

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Our Areas of Practice

  • Real Estate
  • Construction Law Attorney
  • Mechanic’s Lien – Stop Notice
  • Foreclosures
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Navigate

  • Home
  • Our Firm
  • Mark Mellor
  • Practice Areas
  • Case Handling
  • Clients
  • Resources
  • Contact
  • Blog
  • Privacy Policy

Practice Areas

  • Real Estate
  • Construction Law Attorney
  • Mechanic’s Lien – Stop Notice
  • Foreclosures
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Recent Posts

  • How a Business Attorney Can Help You Sell Your Business in California
  • Dealing With A Contract Breach? These Are The First Steps You Need To Take
  • What Are The Recent Construction Laws And Changes: How Do They Impact You As A Contractor
  • Understanding and Avoiding Mortgage Fraud: Here’s Everything You Need to Know

Follow Us

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Contact our offices

The Mellor Law Firm, APLC
6800 Indiana Avenue, Suite 220
Riverside, CA 92506
Phone: (951) 221-4744
Fax: (951) 222-2122
10.0Mark Albert Mellor

The Mellor Law Firm, APLC © 2023. All Rights Reserved.