We get many questions. Enough come up again and again we thought to make this list of Bankruptcy FAQ.
It's like asking what it costs to build a web site. Will it be minimal work with 10 words and a picture, or a lot of time to produce another Amazon. It depends; every case is different. This isn't coupon carpet cleaning where one price fits all (until they tell you it was just 2 rooms). A single unemployed renter and a married employed homeowner with a family are different situations, and yes, will have a different bankruptcy cost because there's a lot more in play in the latter. Once we have a chance to talk and we find out what we're getting into, we'll give you a flat fee in writing, and there won't be any hidden costs or surprises later.
Not until we meet and talk. Oddly, everyone says they have the easiest case ever, but they don't know the law and how it could really muck things up. But we promise that if your case really is the easiest one ever, trust that we'll and give a very competitive fee since we want your business.
Yes, we have a flexible payment plan. And we'll accept a lot less than your credit card minimum payments will take. When you finish paying, we'll finish working, then file your case. We don't charge interest. We're patient. And affordable, especially when you consider the value you're getting. We've stayed in business for years helping people who have no money. It's totally doable. You got this!
A Chapter 7 means you can't pay your debts, so you don't have to... but beware, you can lose things. Chapter 13 means you keep all your stuff, but you can afford to make a debt consolidation payment that stops interest and lawsuits.
The magic of interest. A Chapter 13 bankruptcy freezes interest accrual, so you're not spinning on the treadmill forever paying minimums. In Chapter 13, you make a set number of payments and the rest is forgiven.
Usually, no. You don't pay all debt in a Chapter 13 bankruptcy, unless you can. In most cases, clients pay one set monthly payment for a set time, and after that time the unpaid credit cards go away forever. So no, most don't pay all debt in a bankruptcy.
Lots of reasons. It's a way to force your mortgage lender to stop foreclosure while you pay back the lates. It's a way to stop the IRS and Franchise Tax Board from hounding you while you pay back your tax debt. It's a way to lien-strip a second mortgage. Or sometimes it's your only option.
No, you have to be eligible to qualify for Chapter 7. It's mostly based on income. You can't choose Chapter 7 if you make too much money. The higher your income is, the harder it is to qualify for Chapter 7. The means test decides.
The bankruptcy means test is a long form that reminds some people of a tax form. It calculates things based on a mixture of your actual expenses and others that the Department of Justice allows to you spend. If you're close to the borderline of income, you can retain us to run your numbers to see if you qualify before you commit one way or the other.
We were in the Boot Barn Plaza for about ten years. We added a second office as the economy got worse in 2008-2010. However, as the economy has been recovering, bankruptcy filings nationwide have decreased for about 8 years in a row now. This is a great thing, but caused us to make some of the tough decisions we've counseled clients over the years. So, to manage expenses and cut overhead, we kept the Palmdale office, and closed the Santa Clarita one, as storefront office space in the SCV isn't cheap. We still consult with potential clients in the SCV by having casual chats in a coffee shop, or of course at our AV office.
Yes, most of our clients keep their car or home when they file Chapter 7 bankruptcy. Typically it involves staying current on payments, reaffirming the car. But beware of having too much home equity!
Our track record is a 99.99% success rate on Chapter 7 cases, and our success rate for getting Chapter 13 bankruptcy cases confirmed is much higher than the national average. What we can assure you is that we'll try our best to answer your questions in a way that's easy to understand, while treating you with dignity, compassion, and respect.
Yes, and yes. You have to testify that the papers you signed under oath are true. And don't worry, you'll be totally prepared for it, and the same attorney you consulted with and who signed your papers with you will be by your side. That's part of the full service. Our one flat fee covers all the services covered in a typical bankruptcy. There are no hidden fees or surprises.
Easy. Just contact us, and we'll call you ASAP to arrange a no-pressure consultation with an attorney. We'll explain how it works, go over your options. Then we give a quote for our fee. And then you go home and talk to people you trust, and then, when you're ready, return to hire us. And then the ball is rolling!