PERSONAL FINANCIAL INFORMATION
A detailed listing of all assets, including real property, is the first step in any bankruptcy. It is important to list all outstanding debts, as well as those in good standing. The total debt is still important in bankruptcy cases, even though bankruptcy protection may be required by one creditor or factor. It is important to have a complete itemized list, which should include locating tax returns from the last two years. A bankruptcy attorney can help you with this task. They will be able to explain the details and create a repayment plan that is feasible.
California MEANS TEST
Bankruptcy in Los Angeles starts with the completion of the state financial resources test. This test will give you an income evaluation. It is compared to the median California income. Individuals who earn more than the state average income level may see a greater impact on their filings. The result will help determine the best chapter for them.
For those who need protection from bankruptcy, this qualification is vital. In every case, accurate income information is essential.
A reasonable repayment plan must also be feasible to follow. Maximum debt discharge requires that repayment agreements be completed within three to five years. A five-year repayment plan is required for all Chapter 13 bankruptcy filings.
Los Angeles EXEMPTION – PROTECTION
Certain exemptions in California bankruptcy law may be used to protect personal assets. As individual filers can choose to use Chapter7 or chapter 13, the chapter that they file will determine their protection. Chapter 7 deals with unsecured debt while Chapter 13 protects assets. This is because Chapter 13 filings require that a repayment plan be accepted by the court.
The Los Angeles exemptions are significant and include some personal property. An experienced bankruptcy attorney can assist with this part of the filing.
For those who recently moved to California, bankruptcy in California might be the best option. Residency rules dictate that individuals file in the state where they have resided the longest for the last 180 days. The 91-day requirement is possible while the plan is being reviewed in most cases. California bankruptcy laws can protect more assets than those in previous residence states. Additionally, the median income may be higher in California. Individuals who moved to California for work reasons could find this advantageous.
This article was written by Alla Tenina. Alla is the best bankruptcy attorney in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.