Bankruptcy

Bankruptcy: Chapter 7

The moment a Chapter 7 Bankruptcy is filed, all creditors MUST stop calling or in any way cease communicating with you. They may no longer collect any debt, and if you are represented by an attorney, they MUST communicate with your attorney ONLY.


If you have regular income, you may continue working. If you have a car and you continue making the payments, you may continue to do so. If you have assets that are exempt, you may keep them! And in the midst of all this, you can ELIMINATE, ERASE, DISCHARGE all your unsecured debt.


A Chapter 7 Bankruptcy serves to eliminate or discharge an individual’s unsecured debts (e.g. credit card debt, medical bills, repossession deficiencies, personal loans, etc.), and to give them a “FRESH START”.


Eligibility for a Chapter 7 Bankruptcy revolves around numerous factors, including a thorough income calculation, reasonable monthly expenses, prior Bankruptcy filings, prior transfers of property and/or unprotected assets.


For example, if your 6-month average gross income exceeds a certain amount, you may not be eligible for a Chapter 7 Bankruptcy filing, OR a more complicated calculation may be necessary for qualification. Also, if you have certain assets that exceed federal or state exemption limits, you must be very careful prior to filing your Chapter 7 case, to ensure that they are fully protected.


There are many other factors that may affect the success and even the applicability of filing a Chapter 7 Bankruptcy; unfortunately, many of these factors are often overlooked and individuals end up making very serious mistakes without having received adequate legal advice.


After a Chapter 7 Bankruptcy petition is filed, a mandatory Meeting of Creditors (also called a “341(a) Hearing”) is scheduled for about a month later. This Meeting is more of a formality and serves to confirm the Debtor’s identity and to ask some basic questions about their case. Our office will always prepare you prior to the hearing, and will have an attorney by your side at the hearing. The hearing usually takes less than 5 minutes!


About 3-4 months after the hearing, if there are no further issues or complications of your case, the Court will enter a Discharge and your debts will officially be wiped out.


At HASHEMI LAW CORPORATION, a thorough financial analysis is conducted, so that all details about your situation are discussed. The amounts of debt, assets, income and expenses are carefully reviewed, and numerous bankruptcy and NON-bankruptcy options are presented, depending on each unique situation.


Bankruptcy: Chapter 13 (Reorganization)

A Chapter 13 Bankruptcy is most commonly filed in the following situations:


  1. Income exceeds expenses or allowable state median income
  2. FORECLOSURE pending and debtor wants to SAVE their house
  3. Second Mortgage on Primary Residence is completely “under-water” and Debtor wants to completely ERASE this second mortgage
  4. Debtor had a prior Chapter 7 bankruptcy filing within the last 8 years and cannot file again
  5. Large amount of TAX liability that debtor cannot repay
  6. Large amount of child support or spousal support that debtor cannot repay
  7. Debtor simply wants to repay a portion of their debt to the best of their ability and wipe out the rest
  8. …there are many other factors that may lead to a Chapter 13 filing and it is very important to have a capable experienced attorney to help you with this decision.

When a Chapter 13 Bankruptcy is filed, all collection efforts, all repossessions, foreclosures and communications MUST be stopped by creditors. Creditors may no longer collect any debt, and if you are represented by an attorney, they MUST communicate with your attorney ONLY.


A monthly plan payment is determined by your attorney for a period of 3-5 years, depending on the circumstances, and a PERCENTAGE of your debt is repaid over this time period. These payments are sent to a local Chapter 13 Trustee, who then distributes the funds to your creditors. If you are behind in your CAR or MORTGAGE payments, then those arrearages will also be paid through this one monthly payment. In other words, all your debts are CONSOLIDATED into one single payment, to the maximum extent possible.


After a Chapter 13 Bankruptcy petition is filed, a mandatory Meeting of Creditors (also called a “341(a) Hearing”) is scheduled for about a month later. This Meeting is more of a formality and serves to confirm the Debtor’s identity and to ask some basic questions about their case. Our office will always prepare you prior to the hearing, and will have an attorney by your side at the hearing. The hearing usually takes less than 10 minutes!


Once the Chapter 13 Petition and Plan are approved by the Court, timely monthly payments must be submitted throughout the term, those creditors that were included in your case cannot collect from you in any other way.


If you qualify, your attorney can also try to get Court approval to completely ERASE your second mortgage on your primary residence if the value of your house clearly exceeds the balance on your first mortgage.


At HASHEMI LAW CORPORATION, a thorough financial analysis is conducted, so that all details about your situation are discussed. The amounts of debt, assets, income and expenses are carefully reviewed, and numerous bankruptcy and NON-bankruptcy options are presented, depending on each unique situation.



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Get a free consultation on your situation and also get our Bankruptcy Worksheet PDF once you submit the form:




Main Office - Encino:

16133 Ventura Boulevard, Suite 700
Encino, CA
91436
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Phone: (818) 377-7477
Fax: (818) 377-7478
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Los Angeles:

11500 Olympic Boulevard, Suite 400
Los Angeles, CA
90064
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Orange County (Irvine):

2030 Main Street, Suite 1300
Irvine, CA
92614
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Glendale:

1010 North Central Avenue
Glendale, CA
91203
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