The ability to apply for debt relief is a Constitutionally-protected right, meaning it was deemed important enough to enter into the founding principles of our country. The laws of Bankruptcy ensure that there is a way for honest and hardworking people to begin again if life’s circumstances make it impossible for them to climb out of debt. Because Bankruptcy laws and protections are under federal Bankruptcy jurisdiction, most filings are done with the help of a Bankruptcy attorney.
Miranda, Magden & Miranda Bankruptcy attorneys are proud of who we help. Our typical Bankruptcy clients include homeowners trapped in a questionable lending arrangement prior to the housing collapse, middle-class mothers hit by an uninsured driver coming home from work, field laborers that fall short on income despite overtime work, and the family struck by terminal illness, divorce or unemployment. No matter the circumstances that led you to the impossible financial situation you are now in, your Miranda, Magden, & Miranda Bankruptcy attorney can help you begin again. As foreseen by our country’s founding fathers, the need for hardworking people to have a protected way to start anew, free from debt, and to do so with dignity, is part of who we are.
Bankruptcy itself is a legal mechanism which allows an honest person or business to petition the federal courts for a supervised system of relief from the debts that they cannot afford to repay. Bankruptcy courts grant this relief by first ordering an automatic stay (meaning an immediate halt to all collection activity, lawsuits, and foreclosures by creditors) during the Bankruptcy process. With the help of our Bankruptcy attorneys, your case will progress and you will ultimately be granted a discharge order, which eliminates all previously-owed dischargeable debts and gives the petitioner a new financial beginning.
Chapter 7 Bankruptcy is the most common and generally the quickest type of bankruptcy, usually finishing within 3 to 4 months of a petition filed by your Bankruptcy attorney. Eligibility for a Chapter 7 Bankruptcy hinges on demonstrating to the court that your income level (adjusted for the size of the family you support) is insufficient to be able to pay back your creditors. The value of your assets must also be considered, as you must make sure that they do not exceed the amount the state of California allows you to protect under its two different Exemption systems. Luckily, California is among the most generous states in this regard, and the majority of people who qualify for a Chapter 7 Bankruptcy can eliminate all their debts without losing any of their assets.
Chapter 13 Bankruptcy lasts between 3 to 5 years following a petition filed by your Bankruptcy attorney. This Bankruptcy process usually takes the form of a monthly Chapter 13 Plan payment made to the trustee (administrator of your case) during the duration of your Bankruptcy. If your income is too high, part of this monthly payment will go to paying back a percentage of your unsecured debts, though many people in a Chapter 13 bankruptcy pay back nothing as they would have in a Chapter 7 Bankruptcy. Reasons (other than having too high an income) that people choose to file a Chapter 13 Bankruptcy over a Chapter 7 Bankruptcy include: wanting to strip a second lien off their house, wanting to pay arrears (back-owed payments) on their house or car to avoid repossession, wanting to pay non-dischargeable taxes or other types of debt through the structure of the Chapter 13 Bankruptcy Plan, and protecting the assets that would have been sold off if they had filed for a Chapter 7 Bankruptcy.
Unless you are a corporation or own a large business, your consumer Bankruptcy options will either be a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy filing and it is our commitment as your attorneys to evaluate your individual situation and present you with a complete picture of the benefits and costs of filing for each type of Bankruptcy. In some instances, Chapter 7 Bankruptcy or Chapter 13 Bankruptcy will not be the best option for you, and in that case, we will let you know the reasons why and do our best to give you an alternative course of action. Our Bankruptcy attorneys look forward to evaluating your financial options and to helping you reach the better days ahead with dignity.
Miranda, Magden & Miranda is unique in the high-level of personal service and attention provided to our clients. We believe this personal service is directly linked to the high confirmation rates our clients enjoy. Once you begin the Bankruptcy process with us, our team will be there to answer questions, guide you both in and out of court, and help you stay on track to complete your Bankruptcy case.
Miranda, Magden & Miranda, LLP is a designated Debt Relief Agency. We help consumers file for relief under federal bankruptcy laws designed to protect people like you.
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