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Bankruptcy Overview

Experienced California Bankruptcy Lawyer Serving Los Angeles Clients

If you have been struggling to pay your bills, the intimidating and harassing calls from debt collectors may have already begun. When your budget shows that you are not making enough each month to cover your expenses, you may be wondering what your options are. While some possibilities include debt settlement or a debt management plan, you may not have the available funds to attempt to negotiate with creditors.   As such, bankruptcy may be your only option.

Bankruptcy allows financially insolvent individuals to reduce or eliminate their debts so that they can start fresh. The Law Offices of Kourosh Pourmorady has a combined 47 years of experience advocating for bankruptcy clients in the greater Los Angeles area. Kourosh Pourmorady is renowned for his bankruptcy expertise. His resume features numerous guest speaker engagements on bankruptcy, commentator appearances on CNN, and multiple awards including Martindale-Hubbell Peer Review Rated AV Preeminent. The Law Offices of Kourosh Pourmorady can teach you how to save your most valuable assets, such as your home or your car, while wiping your slate clean though bankruptcy. Contact The Law Offices of Kourosh Pourmorady today at (866) 666-6529 for a free bankruptcy case evaluation.

Bankruptcy in California

Bankruptcy is a legal status that eliminates certain debts from an individual’s payment obligations and allows for an affordable repayment plan of other non-dischargeable debts. When an individual enters bankruptcy, dischargeable debts are removed from their credit report, and the individual is no longer legally or financially responsible for these payments.

Filing for bankruptcy is governed by federal law known as the Bankruptcy Code. Debtors must go through a federal bankruptcy court in order to seek dissolution of their debts. To enter into bankruptcy, you must first file for bankruptcy. Your case will be assigned a federal bankruptcy judge. You will then go through a series of stages, such as credit counseling and a meeting of creditors.

When the judge grants your bankruptcy, the bankruptcy will stay on your credit report for 7 years. While this may affect your ability to apply for new lines of credit, this is also your chance to start all over. You will then have the ability to begin developing credit and building a strong credit history.

Types of Bankruptcy

There are five types of bankruptcy, labeled after their corresponding chapters in the Bankruptcy Code.

  • Chapter 7 bankruptcy cancels unsecured debts. Unsecured debts do not have physical property attached to the debt as collateral. Some examples of unsecured debts include credit cards and payday loans. Some examples of secured debts include mortgages and car loans. Under Chapter 7, secured debts remain the same – the collateral, e.g., the car, stays in the debtor’s possession, and the debtor continues to make payments. Chapter 7 has stringent income requirements for eligibility.
  • Chapter 9 bankruptcy is reorganization for government entities like a city government.
  • Chapter 11 bankruptcy provides for reorganization, and usually involves a partnership or corporations. Chapter 11 allows debtors to negotiate a payment plan for their debts. This can include cancelling some debts or paying only a portion of others. Chapter 11 does not cancel out all unsecured debts like Chapter 7 and does have some fees and costs associated with it. However, it has no income limitations.
  • Chapter 12 is for farming families and fisherman. This form of bankruptcy is specifically geared towards helping distressed farmers and fisherman to propose and carry out a plan to pay a part of, or the total, amount of debt they owe.
  • Chapter 13 bankruptcy is often sought when a person does not quality for Chapter 7 Bankruptcy. Under Chapter 13, an individual enters into a 3 to 5 year repayment plan. Some debts may be discharged, while other debts are negotiated down and then repaid through the plan. This is known as restructuring.

Some debts can never be discharged without extenuating circumstances, such as student loan debt. On the other hand, some assets can never be seized through bankruptcy, like IRAs.

Prominent California Bankruptcy Attorney Prepared to Help You Regain Your Financial Freedom

Bankruptcy is an incredibly complex and long process. Your assets and debts will be scrutinized, budgets will be calculated, and creditors will fight over the bankruptcy plan. A skilled and experienced bankruptcy lawyer like Kourosh Pourmorady has the education and training necessary to ease the bankruptcy process for you. Kourosh Pourmorady has successfully resolved hundreds of bankruptcy cases in Los Angeles and is ready to help you conquer your debts, save your home and your car, and move on with your life. Call The Law Offices of Kourosh Pourmorady today at (866) 666-6529 for a free initial consultation.