Kostopoulos Bankruptcy Law

Category: Bankruptcy

What Happens to Your Home After Bankruptcy in California?

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When you are weighed down by crushing debt and unable to keep up with bills, it is understandable that you would consider all possible options to resolve your financial struggles. Bankruptcy in California may be a solution for many debtors, and there are numerous benefits that could support your goals. When you discharge eligible debt, you get a fresh start, easing your stress and opening the door to new opportunities. You can accomplish your goals through either Chapter 7 or Chapter 13, whichever type of bankruptcy suits your circumstances. For many debtors in California, ‘Home After Bankruptcy’ emerges as a critical consideration

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What Happens to Your Car After Bankruptcy in California?

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Owning a car is more than just having a means of transportation, as a vehicle is essential for you to get to work, attend personal errands, and support your family. Considering the important role it plays in your life, you no doubt have concerns about what happens to your car after bankruptcy in California. You might be aware that the bankruptcy court can take certain assets, and living without a car is not an option. Fortunately, you may have access to better options. Protecting your vehicle is possible in many cases.

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What Happens to Your House After Bankruptcy in California?

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If you are burdened with the weight of choking debt, you may be looking into bankruptcy options to ease your financial struggles. Depending on how far you have researched, you might already know that your assets are important for both Chapter 7 and Chapter 13 bankruptcy. For many filers, the residence is the most valuable, significant asset in the case. You will certainly want to know what happens to your house after bankruptcy in California, and the outcome varies depending on your circumstances.

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Will I Have to Go to Court for Bankruptcy in California?

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Many people have concerns about filing for bankruptcy in California, especially the impact on credit scores that they worry will follow them around for the rest of their lives. These fears may be justified, but it is important to consider them alongside the benefits for your financial future. With Chapter 7, you discharge your debt entirely as long as you qualify. Chapter 13 offers the option to repay debt at a fraction of what you would owe, according to a monthly plan that you can afford. With both types of bankruptcy, you enjoy the automatic stay that stops creditors from attempting to collect your debt.

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How Much Does it Cost to File Bankruptcy in California?

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Debt can creep up on you before you realize it, as you find yourself unable to pay bills and falling behind on your mortgage or rent. It becomes a frustrating struggle when you see that your payments are going toward interest and late fees instead of the balance due. Doing the calculations, you may soon discover that your debt will take decades to pay off. It is wise to look into bankruptcy options if you are burdened with debt, but a big factor is how much it costs to file bankruptcy in CA. Every penny counts when you are trying to take control over your financial situation.

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How Long Does it Take to File Bankruptcy in California?

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Life is stressful when you are struggling under the weight of debt, trying to keep up with bills for your mortgage, utilities, credit cards, and other expenses. Even when you lower your budget to extreme levels, you may only be able to afford the monthly minimums. Soon, late fees and interest add up, and your money goes toward these amounts rather than what you owe. When debt has spiraled out of control, it may be time to consider filing for bankruptcy in California.

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How can I stop wage garnishment?

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If you are facing wage garnishment from a creditor, Kostopoulos Bankruptcy Law wants to help you learn how to put an end to the financial strain and embarrassment it might be causing. Wage garnishment means that your employer is withholding a certain amount of your paycheck and providing the funds to a creditor to whom you owe a debt. How can you stop wage garnishment in California and find relief from debt collectors?

The answer is bankruptcy. When you file for bankruptcy, collection activities are halted by what is called an automatic stay. Creditors are prohibited to continue any wage garnishment or other debt collection actions under an automatic stay. If they wish to resume, they may petition the court to lift the stay, but only if they have a valid reason for doing so. If the debt is discharged through the bankruptcy filing, creditors may not continue wage garnishment after your case has been concluded.

Important notes about wage garnishment and bankruptcy include:

  • Child support or alimony payments that are being garnished from your wages are not covered under the automatic stay
  • Under certain conditions, you may be able to recover wages that have already been garnished within a 90-day period before filing
  • If your bankruptcy claim is dismissed and the debt for which your wages are being garnished has not been discharged, the creditor may continue with wage garnishment
  • There is a chance that creditors may not be alerted of the bankruptcy filing in time to halt garnishments, so you should also alert your company’s payroll department and your local sheriff’s office

To learn more about how to stop wage garnishment in California, contact our Oakland bankruptcy lawyers at Kostopoulos Bankruptcy Law. We can discuss your legal options in a free consultation. Get started by calling us today!

Can I file Bankruptcy while in the Military?

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Those in the military have the same right as any to file for bankruptcy relief and actually enjoy certain benefits over civilian debtors. On the other hand, filing for bankruptcy can also affect your security clearance in some situations.

Service members are offered federal protection in civil actions thanks to the Service-member’s Civil Relief Act, or SCRA. This act allows courts the right to put a stay or postpone bankruptcy and non-bankruptcy proceedings being taken against military personnel while they are on active duty. These protections are separate from the automatic stay normally provided by bankruptcies.

Exemptions from Means Testing

Normally, those looking to qualify for Chapter 7 bankruptcy need to pass a means test in order to disqualify those debtors who have enough disposable income to repay part of their debts from filing for bankruptcy. Disabled veterans, however, who have debts which were incurred mainly while on active duty, are not required to complete such a means test to qualify for Chapter 7.

Furthermore, National Guard members and reserve units of the armed forces who were called up for at least 90 days after September 11, 2001 are also excluded form a Chapter 7 means test while on active duty and for 540 days afterwards. Those who qualify must still complete the means test form no more than 14 days after the beginning of the 540-day exclusion period.

While your security clearance will not be affected automatically by filing for bankruptcy, it can factor into a decision regarding your clearance along with your job performance and relationships with superiors and coworkers.

Clearance decisions are made on a case by case basis but having a considerable amount of debt can be seen as a negative to your superiors. You should inquire into how your clearance may be affected before you even file for bankruptcy.

Kostopoulos Bankruptcy Law, our Oakland bankruptcy lawyers help clients in financial distress make important and positive decision to help manage their debt. If you are in the military currently or a veteran, speak with our firm for legal counsel!

Can I Buy a Vehicle After Filing for Chapter 13 Bankruptcy?

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After filing for bankruptcy, it almost feels like all big purchases are off limits. After all, your finances just underwent an intense amount of scrutiny and passed through the ringer, so to speak. While bankruptcy can make it more difficult to purchase items such as a car or a home, it’s certainly not impossible.

Can I Get an Auto Loan with an Open Chapter 13 Case?

Those who are looking to purchase a new car with an active Chapter 13 case are able to get a car loan under certain conditions.

There are two options to purchasing a vehicle after Chapter 13:

  • Wait for your bankruptcy discharge which doesn’t occur until the end of your repayment plan
  • Request permission from your trustee to take out a car loan before your discharge

The first option may take longer, but the second one can be infinitely more difficult. Many lenders are hesitant to give you a car loan if they know you just filed for bankruptcy and there are companies just looking to scam you out of your money.

Tips to Getting a Car Loan While in a Chapter 13

  • Plan and budget. Make sure that a monthly car payment is within your budget and won’t affect your ability to pay your payment plan. Stick to a reasonable vehicle that is affordable.
  • Review the options at your own bank first. If they’re unwilling to lend to you, it’s time to do your research. An attorney can simplify the process for you and may be able to recommend a trusted lender. You should also research your options thoroughly before signing any papers; the last thing you want is more financial trouble.
  • Be aware of guaranteed loans despite credit scores, wire transfer requests, and requests for fees right when you sign up. You can also check with the Better Business Bureau for further verification.
  • Get approval from the court. After you have a car loan lender, it’s time to obtain approval from the bankruptcy court. They will assess your bankruptcy income, the amount of the loan you’re applying for, and whether you have the means to pay that loan back over time. The motion you file with the court will go further into detail regarding your loan and the car you wish to purchase.

Getting a Car Loan After Your Bankruptcy Is Done

In some cases, it may make sense to wait until after your bankruptcy is complete to get a new car. By waiting, you can use this time to rebuild your credit and save up for a down payment, which can likely qualify you for better auto loan terms.

We’re Here to Guide you

Life after bankruptcy can be intimidating, especially when you have plans to commit to a large purchase. Kostopoulos Bankruptcy Law has the resources to make this process as seamless as possible. Not only have we been named as one of the Top 100 Firms by the Debt Education and Certification Foundation, we offer legal counsel in English, Vietnamese, Spanish, and Greek.

Call our Oakland bankruptcy lawyers today to receive award-winning legal counsel while purchasing your post-bankruptcy vehicle!

How Fast Does Bankruptcy Work?

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Once you’ve made the decision to file for bankruptcy, it is common to just want to get the entire process over with. But with so many varying opinions, is there any way to know how long it actually takes? There’s no doubt that every case is different and the timeframes vary from person to person. Regardless, the following information can at least give you the barebones of what to expect from start to finish.

How Long Does Chapter 7 Bankruptcy Take?

Chapter 7 bankruptcy can take as little as three months, but may last up to six months depending on the way that you file. In a limited asset case, creditors have nothing to follow up on and everything is said and done in roughly four months. For asset-based filing, the entire process may take longer because there is more to process.

How Long Does Chapter 13 Bankruptcy Take?

Chapter 13 bankruptcy on average lasts 3-5 years. This is due to the repayment plan each individual is required to complete before your debt is discharged. However, the quicker you’re able to repay your debt, the faster you can say goodbye to bankruptcy.

How Long Will an Emergency Bankruptcy Take?

Emergency bankruptcy is exactly what it sounds like: an option for people who want an automatic stay with haste. Not everyone can file, but for those who are interested, the necessary documents must be filled out within 14 days or your case may be dismissed. It’s much quicker than either Chapter 7 or Chapter 13 and is beneficial if you need an automatic stay immediately.

Talk to an Experienced Attorney

No matter what chapter you’re hoping to file for, Kostopoulos Bankruptcy Law wants to meet your needs along the way. Get in touch with our Oakland bankruptcy attorney for representation you can count on!