Personal Bankruptcy

In these difficult financial times, Long Beach residents are having trouble paying their debts and meeting their obligations. Harassed by creditors, perhaps threatened with foreclosure, individuals often do not know where to turn for help. At the Claveran Law Firm of Long Beach, California, we know how difficult these times are, and we can help.

One option that you might consider is personal bankruptcy. There are two sections of the Federal Bankruptcy Code under which relief may be sought. Under Chapter 7, individuals with primarily consumer debt are permitted to liquidate that debt. In order to qualify for Chapter 7 protection, individuals must satisfy a “means test” that focuses on the financial situation of the debtor. Certain debts may not be discharged, and Chapter 7 will not prevent foreclosure.

Under Chapter 13 of the Bankruptcy Code, an individual may seek to restructure his debt under the protection of the bankruptcy court. Under Chapter 13, a debtor does not liquidate his debt; rather, he proposes a plan that allows him to pay some or all of his debt over a time span of 3 to 5 years. Homeowners struggling to stop foreclosure may be helped by filing for bankruptcy under Chapter 13, which allows them to stop foreclosure and restructure payment.

While bankruptcy protection can offer individuals the “fresh start” they need to get back on their feet, there are also disadvantages to filing. There are two primary drawbacks: the first is the long-lasting impact on your credit report, and the second is the fact that not all debts may be discharged. These two considerations must be weighed against the benefits of bankruptcy filing for you. You should also know what other – non-bankruptcy - options may help solve your financial problems. At the Claveran Law Firm, we believe that bankruptcy should be a last resort. We are skilled negotiators who have 20 years of experience assisting clients modify loans, restructure mortgages, and deal with creditors.

Call the Claveran Law Firm at 888.838.0431 to discuss your options, or contact us online via our Web form.