Chapter 7 Consumer Bankruptcy Protection in Los Angeles County
Individuals who are facing increasing amounts of debt and are concerned about their financial future may find responsible debt relief through Chapter 7 consumer bankruptcy protection. Chapter 7 bankruptcy, which is also known as a liquidation bankruptcy, allows individuals to discharge eligible debts and get a fresh financial start. While it is not the best solution for everybody, many people can find effective relief through bankruptcy protection.
At the Law Offices of Mosesi & Kalantarian, LLP, we help individuals file for Chapter 7 bankruptcy. Bankruptcy reforms in October of 2005, have led many people to incorrectly assume that it is more difficult to file for bankruptcy. However, as experienced bankruptcy attorneys, we understand how the changes to the bankruptcy laws affect a person's eligibility for bankruptcy protection.
Prepare to Begin Your Bankruptcy
Before coming into our firm or contacting any lawyer about filing for bankruptcy, there are a number of actions that you need to take to prepare for bankruptcy:
- DO NOT KEEP MONEY THAT YOU USE TO PAY YOUR LIVING EXPENSES IN A BANK ACCOUNT. In California, Wells Fargo Bank and Union Bank will freeze your account after you file bankruptcy. They do this supposedly to safeguard the funds until the bankruptcy trustee either pays out the money to creditors or returns the money back to the debtor. The wise thing to do if you have an account with any of these banks is not to keep large sums of money in the account. It usually takes several days for the funds to be released back to the debtor.
- DO NOT KEEP MONEY IN A BANK WHERE YOU ALSO HAVE A CREDIT CARD WITH A BALANCE. Another situation when a bank may take your money is when you have a credit card account with the bank. In this situation, the bank can legally take money from your account in order to satisfy the debt. Our advice to you is switch your bank account if you owe on a credit card with a bank that you have an account with.
- Attend a Pre-Bankruptcy Credit Counseling Briefing and file proof of completion before you file for bankruptcy. You must also attend a Debtor Education Course after your case is filed. You must provide proof of completion. You can enroll in both courses at www.startfreshtoday.com. Please make sure you enter our attorney code mosesi3241 when you sign up with startfreshtoday.com. You can also find a list of approved providers at this government website.
- For instructions on how to get your Pre-Bankruptcy Credit Counseling, download the pamphlet here.
- For instructions on how to get your Debtor Education Course, download the pamphlet here.
- Gather all your current credit card bills, collection letters, lawsuits, credit reports, utility bills, mortgage statements and any other documents that show proof of owed debt.
- Get a free copy of your credit report from www.annualcreditreport.com. You may also call 877-322-8228 to request a copy of your report by phone. You will have to provide your SSN number, address, date of birth and zip code.
- Get copies of your check stubs for the past six months from your employer(s). You must have each and every check stub for the previous six months before the date of filing. These will help us determine your eligibility under the means test. If you are married, the income of your spouse is taken into consideration to determine if you qualify for bankruptcy. Please get copies of your spouse’s check stubs for the past 6 months as well.
- Obtain a copy of your most recent federal tax return or tax transcript. You may request a transcript from the IRS by faxing them the required form IRS 4506t.
- By taking care of these preliminary actions before contacting an attorney for help with your Chapter 7 bankruptcy, you can make the process quicker and easier. Of course, if you have any questions about any of these steps or have general questions about the bankruptcy process, feel free to contact the Law Offices of Mosesi & Kalantarian, LLP. Call us at 818.433.7590 or toll free at 888.848.8408 to schedule an appointment for a free initial consultation.
