The average American family owes almost $140,000 to a wide variety of creditors. That figure is more than twice the average annual household income in America. So, many families struggle to pay the bills, at least during some parts of the year. Often, the resulting stress causes Post Traumatic Stress Disorder-type symptoms. When creditors constantly call and threaten adverse action, like foreclosure or wage garnishment, this stress becomes much worse. Thankfully, there is a way out.
The aggressive attorneys at Miranda, Magden & Miranda, LLP offer a wide range of solutions for Central California families who struggle with unpaid debt. We know the law, and we know how to use it to your advantage. So, we stand up for your legal and financial rights throughout your bankruptcy case. All the while, we also give you solid legal advice, so you can make the best possible choices.
Much of the aforementioned household debt is in the form of high-interest credit card obligations. It is extremely frustrating to spend thousands of dollars on such debts every year, yet only see the balances shrink marginally. In their desperation, some families turn to high-interest payday loans, and the downward financial spiral continues.
Until recently, the Fair Debt Collection Practices Act assisted consumers in these situations, but the Supreme Court has basically eliminated these protections. So, bankruptcy may be the only remaining option, especially when collections calls turn to wage garnishment and lawsuits.
Bankruptcy’s Automatic Stay puts a stop to all these things. When consumers file Chapter 7, creditors must immediately cease all adverse actions, including:
In most cases, the Automatic Stay remains in effect throughout the proceeding. Moneylenders can only bypass Section 362 of the Bankruptcy Code if the judge grants special permission. This permission is not easy to obtain.
At the same time, the Bankruptcy Code also protects most of the debtor’s property. In most cases, the court cannot seize houses, cars, retirement accounts, and most other assets in order to pay off debts.
Procedurally, about six weeks after debtors file their Chapter 7 petitions, the person in charge of overseeing the bankruptcy (the trustee) reviews the paperwork, asks a few identity-related questions, looks at a few financial documents, and clears up any red flags. Within about two to four months later, all the debtor’s credit cards, medical bills, and other unsecured debts are discharged.
In Chapter 13, which is also called the wage-earner plan, the trustee’s role is a bit different. Instead of merely reviewing paperwork, the trustee basically places the debtor on an allowance for either three or five years. All the debtor’s disposable income goes to pay off secured debt arrearages. That includes things like past-due mortgage payments and delinquent auto loan installment payments.
Since the Automatic Stay remains in effect for the entire period, moneylenders must normally accept the income-based repayment plan. The Automatic Stay even prohibits them from complaining about it, in most cases.
At the end of the protected repayment period, the judge discharges any remaining unsecured debts. The debtor is also current on all secured obligations. That combination is the very definition of a fresh financial start.
The Bankruptcy Code offers multiple options to distressed California debtors. For a confidential consultation with an experienced bankruptcy lawyer near Marina, contact Miranda, Magden & Miranda, LLP. Initial consultations in Bankruptcy are provided free of charge.
Thank you Miranda and team for the excellent service provided. Miranda is a compassionate, understating, extremely knowledgeable and professional attorney. Her team was always on top of everything making my legal process less stressful. I could never thank Miranda and her assistant Ingrid for holding my hand throughout this difficult process (literally). Miranda is one of the BEST immigration lawyers ever! I would definitely recommend her.
They represented my custody case and handled it like it is their own case and they are best in Monterey County.
The entire team at MMM are superstars! I appreciate all the time and prep that went into my original case many years ago. And now recently, I asked for some help on a follow-up custody matter that I felt I could handle myself but just needed their expertise to properly represent all the important details. They are knowledgeable, extremely thorough, and prepared me for every possible scenario. I can't thank them enough!
My partner and I sought legal advice on bringing my fiance' to the United States with this office after having called a few immigration attorney offices around Monterey County. Having never sought legal advice before it was a refreshing experience in which we both really felt that Patricia listened intently to our goals and needs, and then not only gave us thorough advice, but also she really showed a lot of empathy with our situation and all the challenges we faced in what we trying to do. I would definitely recommend this office for anyone who is unclear about what..
Working with Patricia was a professional encounter unlike any other, an absolute 5-star experience. From the first moment, we walked into our consultation until the moment our case was closed and my husband walked away with his permanent resident card Patricia was communicative, professional, and thorough. Her team contacted us every step of the way providing valuable process and law changes we would not have been able to catch if we tried to navigate this endeavor alone. Patricia answered our endless question stream with thoughtfulness and care, calling us countless times to ensure we were clear on every piece of..
Last year, I had just moved in the area and needed a family law attorney for a custody case. The process of finding/choosing an attorney could be daunting. However, when I went in for my first consultation with Levi my stress level was immediately mollified. He was personable, which made me feel comfortable to discuss my personal matters freely. I had a lot of questions of the legal process that would take place and he took the time to explain everything with meticulous detail. More importantly, when I called Levi he returned my phone calls in a timely/professional time frame...
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