Kostopoulos Bankruptcy Law

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Can Personal Loans Be Included in Bankruptcy in California?

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Yes, personal loans can be included in bankruptcy in California, and they are usually dischargeable. This includes personal loans from banks, credit unions, friends, family, or employers. Unsecured personal loans, which are loans not backed by collateral, are eligible for discharge in both Chapter 7 and Chapter 13 bankruptcies.

Filing bankruptcy in California involves understanding the types of debt dischargeable, assets and exemptions, eligibility criteria, credit impact, costs, legal procedures, and the role of a bankruptcy lawyer in guiding individuals through the process.

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Top FAQs About Personal Loans and Bankruptcy in California

Can personal loans be discharged in bankruptcy?
Yes, personal loans can be discharged in bankruptcy, especially unsecured ones like credit card debt and medical bills under Chapter 7 bankruptcy, but secured loans may require surrendering collateral or reaffirming the debt.
What is the difference between secured and unsecured personal loans in a bankruptcy context?
In a bankruptcy context, the main difference between secured and unsecured personal loans is the presence of collateral. Secured loans are backed by collateral, which can be claimed by the lender if payments are not made, while unsecured loans do not have collateral. Unsecured debts are often discharged in bankruptcy, while failing to make payments on secured debts may lead to the loss of collateral.
Are there any debts that cannot be discharged through bankruptcy?
Yes, debts like alimony, child support, student loans, and specific tax obligations generally cannot be discharged through bankruptcy.
How can I rebuild my credit after filing for bankruptcy?
To rebuild your credit after filing for bankruptcy, you can obtain secured credit cards, use credit-builder loans, keep credit utilization low, make timely payments, regularly review credit reports, and consider becoming an authorized user on a stable account. These steps can contribute to improving your creditworthiness and financial stability.
WWhy is it important to work with a bankruptcy attorney when dealing with personal loans in bankruptcy?
Working with a bankruptcy attorney when dealing with personal loans in bankruptcy is important because they ensure accurate documentation, provide expert financial advice, and help navigate the complex process, ultimately leading to the best possible financial outcome.

How to Avoid Paying a Civil Judgement on Your Credit Report in California

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Facing a civil judgment can feel like a financial dead end—but there may be lawful strategies to reduce or even eliminate what you owe. You might be wondering, How can I avoid paying a civil judgment without breaking the law?

You can avoid paying a civil judgment legally by negotiating a settlement, asserting exemption rights, appealing the judgment, or discharging it through bankruptcy. Asset protection strategies may also shield certain property from collection.

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Top FAQs to Bankruptcy Lawyers About Outstanding Judgments

What are the benefits of filing for Chapter 7 bankruptcy?
Filing for Chapter 7 bankruptcy allows you to discharge most unsecured debts, such as medical bills, credit card debt, and personal loans, effectively providing a fresh financial start. This process can also stop wage garnishments, alleviate the burden of overwhelming debt, and offer a pathway to rebuilding your credit sooner.
What are the benefits of filing for Chapter 13 bankruptcy?
Filing for Chapter 13 bankruptcy enables debtors to reorganize their debts into a manageable repayment plan, paying them off over three to five years. This method can prevent home foreclosure, allow for the restructuring of car loans, and may enable you to pay back taxes over time without penalties or interest.
Can filing for bankruptcy stop creditor harassment?
Yes, filing for bankruptcy invokes an automatic stay which immediately stops most collection efforts, harassment, and creditor lawsuits. This means creditors cannot contact you directly and must cease all collection activities while the stay is in effect, ensuring compliance with credit reporting practices.
What kind of debts cannot be discharged through bankruptcy?
Certain types of debts are non-dischargeable in bankruptcy, including most student loans, recent tax debts, alimony, child support, and debts arising from fraud.
How can I contact Kostopoulos Bankruptcy Law?
You can reach Kostopoulos Bankruptcy Law by phone at (877) 586-1829 or by visiting their website to submit your details through their online contact form. They offer a free initial consultation to discuss your financial situation and legal options.
What is the down payment for initiating a payment plan with Kostopoulos Bankruptcy Law?
You can start a payment plan with Kostopoulos Bankruptcy Law with a down payment as low as $100. The firm understands financial constraints and strives to make their services accessible to those in need.
How many clients has Kostopoulos Bankruptcy Law helped?
Kostopoulos Bankruptcy Law has successfully assisted over 10,000 clients nationwide, showcasing their extensive experience and commitment to providing effective legal solutions.
What should I expect during the initial consultation with Kostopoulos Bankruptcy Law?
During the initial consultation, you can expect a comprehensive evaluation of your financial situation. An experienced attorney will review your debts, assets, and income to advise you on the most beneficial course of action, whether it's bankruptcy or an alternative debt relief option.

What Are the Common Mistakes to Avoid When Filing for Bankruptcy in California?

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Filing for bankruptcy is a significant financial decision, and making mistakes in the process can have serious consequences. So, what are the common mistakes to avoid when filing for bankruptcy in California?

The most common mistakes include transferring assets before filing, taking on new debt, cashing out retirement funds, failing to disclose financial details, and waiting too long to file. Avoiding these missteps can protect your case and maximize your financial relief.

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FAQs About Bankruptcy Mistakes in California

What can you not do after filing bankruptcies?
In Chapter 7 and Chapter 13, obligations pertaining to current taxes, spousal maintenance, child support payments, and judicial directives cannot be eliminated. You might lose the privilege to retain specific properties, credit cards, or bank accounts, and acquiring loans will necessitate authorization from the court after declaring bankruptcy.
Does my debt go away when I declare bankruptcy?
When you file for bankruptcy, it can serve to clear away most unsecured debts. Not every type of debt might be forgiven through this process, such as secured debts like your mortgage.
Who loses money first in a bankruptcy case?
During bankruptcy proceedings, the initial financial losses are absorbed by secured creditors, which usually include banks and lenders. Unsecured creditors are next in line to face losses, and these may be banks as well as suppliers. Stockholders stand at the end of the queue when it comes to asset claims.

Consequently, if there’s insufficient repayment to cover other creditors’ claims fully, stockholders might end up without any compensation from the remaining assets.
What is the 90-day rule for bankruptcy?
Under the 90-day rule in bankruptcy, if you disburse over $600 to a creditor in the period of 90 days preceding your filing, the trustee overseeing Chapter 7 has the authority to demand that said creditor refund those monies.
What happens if I don't disclose all my assets when filing for bankruptcy?
When you are filing for bankruptcy, it is imperative to reveal all of your assets. Concealing any could lead to a refusal of debt relief, the possibility of having an approved discharge later revoked, or facing criminal prosecution.

To prevent these adverse outcomes, exercise completeness and honesty in your disclosure.

What Happens If You Cosign a Loan and the Other Person Doesn’t Pay?

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Cosigning a loan can be a helpful way to assist a friend or family member in securing financing. But what happens if you cosign a loan and the other person doesn’t pay?

Failing to pay a cosigned loan on time harms both parties. The lender reports late payments to credit bureaus, lowering both credit scores. The cosigner must cover missed payments and may face collection actions or legal consequences. This can damage relationships and impact future loan approvals.

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How To Stop Wage Garnishment in California

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If wage garnishment makes it difficult to afford your essential living costs, you can request a Claim of Exemption from the court to either lower or eliminate the garnishment. This process demonstrates that the withheld amount jeopardizes your ability to meet essential needs.

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FAQs About Stopping Wage Garnishment in CA

Can You Stop Garnishment Once It Starts?
Yes, by filing a Claim of Exemption, negotiating with creditors, or filing for bankruptcy.
What Funds Are Exempt From Wage Garnishment?
Social Security, disability benefits, and public assistance are fully exempt.
How Much of My Wages Can Be Garnished?
For most debts, up to 25% of disposable income can be garnished. For child or spousal support, garnishment can reach 50%-60%.
What Happens if I File for Bankruptcy?
Bankruptcy imposes an automatic stay, immediately stopping wage garnishment.
How Long Does It Take to Stop Garnishment?
•Filing a Claim of Exemption: 10-30 days.

•Bankruptcy: Immediate upon filing.
What Are the Common Mistakes to Avoid When Filing a Claim of Exemption?
Avoiding common errors when filing a Claim of Exemption ensures your request is not delayed or denied:


Incomplete Forms: Ensure all sections of WG-006 and WG-007/EJ-165 are filled out correctly.

Missing Supporting Documents: Include pay stubs, bills, and a detailed financial statement to substantiate your claim.

Late Filing: Submit your forms promptly to the levying officer, usually within 10 days of receiving the garnishment notice.

Failing to Prepare for Opposition: Be ready for a court hearing if the creditor disputes your claim.


Attention to detail and prompt action can significantly improve the likelihood of approval.
Can a Wage Garnishment Be Reinstated After Being Stopped?
Yes, wage garnishment can be reinstated if:





The Debt Remains Unpaid: If the original debt isn’t resolved after a temporary stoppage.



A New Judgment Is Secured: Creditors may file for a new judgment after correcting procedural errors or reapplying.



Bankruptcy Protection Ends: Once a Chapter 13 repayment plan is complete, creditors may resume garnishment for debts not fully discharged.

To prevent reinstatement, resolve the debt entirely or maintain compliance with bankruptcy repayment terms.

The Pros and Cons of Debt Settlement vs Bankruptcy in California

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Are you a California resident drowning in debt? You’re not alone. In the Golden State, where the cost of living often outpaces income growth, many find themselves struggling with overwhelming financial obligations. Whether you’re in the bustling tech hub of San Francisco, the entertainment capital of Los Angeles, or anywhere in between, understanding your debt relief options is crucial.

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