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Bankruptcy Law Firm Near Marina, CA

If you are burdened by debt, it is important to explore all your legal options with a bankruptcy law firm near Marina, CA. Bankruptcy, debt consolidation, short sales, and many other options can be available to provide you with relief from your debts. The sooner you take control of your debt, the sooner you can begin rebuilding your financial future. 

What is bankruptcy?

Bankruptcy is a legal process that allows a person to legally walk away from his or her debts. Once the debt has been discharged at the end of a successful bankruptcy case, the debtor has no legal obligation to repay his or her creditors. 

The bankruptcy process begins by filing a petition with the bankruptcy court. The debtor must disclose his or her income, assets, and liabilities. A debtor must qualify for bankruptcy by staying below state law income requirements. The debtor must also qualify for bankruptcy by meeting the “means test” (a comparison of the debtor’s income to the debts he or she claims are unable to be repaid). This is why it is important to work with an experienced bankruptcy attorney before filing for bankruptcy. He or she will be able to determine if you qualify for bankruptcy and how your debts and assets should be reported on your bankruptcy petition. 

The debtor must then appear at a “meeting of creditors” before the assigned bankruptcy trustee. This is an opportunity for any creditor to object to the bankruptcy. In practice, very few creditors actually have legal grounds to object to their debt being discharged. Instead, the trustee uses the meeting as an opportunity to ask the debtor questions about the bankruptcy petition. If the trustee is satisfied that the debtor qualifies for bankruptcy, he or she will recommend that the bankruptcy court discharge the qualified debt. So long as the court has no legal objections to the case, it will order the debt to be discharged. 

What about my credit rating?

The biggest concern most debtors have with bankruptcy is the effect it will have on their credit rating. It is true that a Chapter 7 bankruptcy is reported to the credit bureaus for ten years after your debt is discharged. This will negatively impact you for a time, and some creditors may choose not to lend to you (or only offer inflated interest rates). But this is a temporary situation. During this time, you are not burdened by making debt payments, and this allows you to make other payments on time. You are also no longer having late payments reported on your credit report. These are important steps toward rebuilding your credit. Though bankruptcy can have some temporary negative effects on your credit report, it is usually far worse for your projected future credit rating to have late payments left unresolved on your credit for years. 

Dependable legal advice for resolving your debts

There are many different legal options available to resolve your debt and begin rebuilding your credit. Miranda, Magden & Miranda, LLP has helped many Californians gain control over their finances. Contact us to schedule a consultation with one of our experienced Marina bankruptcy lawyers.

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