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Consumer Bankruptcy Attorney In Encino, California

In 2005, legislation was passed that dramatically altered the bankruptcy process in California. Because of this modification, far fewer individuals qualify for bankruptcy now than before. Although taxes, student loans, and judgment liens are typically still there after you finish your bankruptcy case, they’re no longer the grey cloud that follows you or your family. For help getting out of this financial hole, contact our Encino consumer bankruptcy attorney at Haber Law Firm, APC today.

Large medical expenses, especially when coupled with a loss of employment, can leave you in a financial hole that is nearly impossible to climb out of. Bankruptcy might help you get your medical bills down and even erase them, allowing creditors to stop coming to your home and being pushy or attempting to take more than you owe. Student loans are another gigantic debt that can frequently leave people with no way out. Your student loans will not go away after you file for bankruptcy, but the debt levels might be reduced in bankruptcy so that you can pay them off in a reasonable period of time. If you are currently dealing with money difficulties, filing for bankruptcy may be the ideal and most intuitive method to start afresh and gain control of your future.

What Is the Means Test?

The “Means Test” was the most significant impact of the 2005 legislation change. This test determines whether or not you qualify for bankruptcy. The means test is a lengthy calculation that takes into account where you live and your income expenses to determine what your “means” are. If you are above a threshold amount of “Means,” it is presumed that you do not qualify for bankruptcy. If you fall below that mark, you are deemed to qualify. In California, as of April 2022, the maximum gross annual income levels at which individuals automatically qualify for Chapter 7 bankruptcy are:

  • One Earner: $65,895
  • Two People: $87,355
  • Three People: $97,092
  • Four People: $111,535

Chapter 7 & Chapter 13 Bankruptcy In California

A Chapter 7 bankruptcy is a very successful (some debts are totally erased), quick (about 3-4 months on average), and financially painless procedure if you qualify and have no assets (of significant value). A Chapter 7 case is simply referred to as a “no asset” situation, and it isn’t particularly difficult. Attorney fees and court expenses are the only real costs, so it’s generally considerably cheaper than other choices.

The major problem for homeowners and other secured obligations like automobiles is that their debts will not be forgiven unless they are willing to give up the house or vehicle as well. If you want to keep your property linked to secured debt, you typically must continue to pay it. Many homeowners choose Chapter 13 bankruptcy since this gives them the option of seeking bankruptcy protection while still keeping their homes and assets. A “Plan” is filed, discussed, and ruled upon by the court in a Chapter 13 bankruptcy. This document details what you will pay and to whom. They generally last 3-5 years.

What Are the Benefits of Filing for Bankruptcy?

Filing for bankruptcy is a time-consuming and emotionally draining procedure. It takes more effort and time than most individuals believe, but it might also be the best option for big debt problems. Consult with an Encino consumer bankruptcy attorney or learn more about your alternatives; you may discover that filing for bankruptcy could assist you in getting out of a financial crisis. Most people find that declaring bankruptcy relieves tension by preventing:

  • Declaring bankruptcy might prevent your house from being foreclosed upon and even set up a payment plan that will let you pay off your arrears.
  • You may be able to reclaim a car that has been repossessed by a creditor if you declare bankruptcy.
  • The expenses for a large medical procedure, especially when it is accompanied by unemployment, may be nearly insurmountable. Bankruptcy might assist you to get rid of or at least reduce your medical bills.
  • If your utilities have been cut off, bankruptcy can assist you in regaining service so that you don’t have to live in darkness.
  • Wage garnishment is temporarily halted by bankruptcy, allowing you to get by on expenses such as food and shelter.

Contact An Encino Consumer Bankruptcy Attorney Today

There are advantages to filing for bankruptcy if you have bills that you can’t afford to pay. You will receive a fresh start, and the majority of negative consequences will be expunged from your record in a few years. However, whether or not you should file for bankruptcy is determined by an individual’s unique circumstances. As a result, engaging with an experienced Encino consumer bankruptcy attorney who can explain the benefits and drawbacks of going bankrupt in your specific circumstances is crucial to secure the optimal outcome. If you’re considering filing bankruptcy in California, contact Haber Law Firm, APC today.


This website contains attorney advertising.  The information provided herein should not be relied upon as legal advice.  Every legal matter is unique and you should always seek the advice of a retained attorney to answer your legal inquiries.  Haber Law Firm, APC, will not represent you unless an attorney-client relationship is formally created in writing.