How A Bankruptcy Law Firm Helps To Manage Debt In CA State

If you are someone struggling with your finances, you are not alone. During the COVID-19 pandemic, a lot of people were under burdensome debt. Whether it was due to job loss or reduction in earnings, filing bankruptcy is an effective way to get out of the situation. For most people, understanding and filing a bankruptcy case can be daunting. 

Although you can file the case without any professional help, the complexity of the process is overwhelming for most people and they end up making horrific mistakes. Mistakes such as losing non-exempt assets, denial of discharge of a debt, or criminal fraud charges! This is where a bankruptcy law firm in San Diego, CA helps you to manage your debts safely and deal with issues such as sues by Bank of America.

Keep in mind that filing a bankruptcy case in California isn’t very different from other states but the important attributes of state law will be mentioned where necessary. Instead of the state courts, the bankruptcy cases are filed in federal district courts. 

What Is A Bankruptcy Firm?

A bankruptcy firm is a firm of attorneys and law experts that specialize in handling bankruptcy cases. Along with the legal advice, these firms are also responsible for handling the complete legal paperwork. In most cases, they assign an attorney to your case that will assist you until the case ends. There are several popular bankruptcy firms such as Cavalry and LVNV funding to help consumers across the USA.

How Does A Bankruptcy Attorney Help To Manage Your Debts?

You can either hire a bankruptcy attorney that works independently or get in touch with a bankruptcy firm. Whatever the case may be, things will boil down to you working with a specialized bankruptcy attorney. Here is how they can help you.

  1. Asses The Complexity Of Your Case

The first step first, understands the complexity of the case. The professional will take a look at all the facts and figures of the recent situation. In some cases, bankruptcy may not be the right way to achieve financial goodwill. The attorney will help you pass through the bankruptcy alternatives. In other cases, the lawyers will help you decide which type of bankruptcy to file depending upon your recent situation. 

The two major bankruptcies for individuals include chapter 7 & chapter 13 that are serving different goals. Chapter 7 bankruptcy, commonly known as direct liquidation, allows you to discharge all of your obligations without having to engage in a payment schedule. When consumers know they cannot pay the debts, they choose to file for chapter 7. 

Chapter 13, often known as a “wage earner’s plan,” entails repaying creditors over a five-year or 60-month period. Whether your list of creditors includes Bank of America, Discover Bank, or TD bank, the attorney will help you make the right decisions at this stage.

Prepare And File The Paperwork

The attorney not only assists you with sound legal advice but helps with the preparation and filing of the case. They better understand how to use any special circumstances you present and apply the means test. The calculation indicates whether you qualify for Chapter 7 or Chapter 13. 

The next important duty is to value your assets realistically. A bankruptcy law firm in California helps the consumers understand and choose between the two separate lists of assets you can exempt. California is one of the few states providing such two lists for its people. The attorney will help you protect assets by using California homestead exemption systems 1 and 2, motor vehicles, household goods, and, wildcard exemption. 

There are a few debts that never leave you. Expect your attorney to tell you about the debts that will survive bankruptcy cases and the ones that won’t.

Once the preparation work is complete, it’s time to fill the length package of forms. Most of the popular established bankruptcy firms or debt buying organizations such as Cavalry SPV use specialized software to complete the required paperwork.

Represent You At All Legal Hearings

Whether you are working with MCM, or Cavalry SPV, a bankruptcy attorney will represent you at all the legal hearings. Bankruptcy attorneys are known for purchasing credit card debt from major banking institutions such as Bank of America and American Express. Starting from the first meeting of the creditors to the final settlement of your case, the attorney represents your case. They also handle the questions with your creditors and prepare you for what a trustee may inquire of you during the meeting.  

Make a Deal With Your Creditors

Your attorney can arrange a reaffirmation agreement or redemption with a secured creditor if you file Chapter 7 bankruptcy. Negotiations that go well may allow you to keep your home or car. In a Chapter 13 bankruptcy case, your attorney will work with you to negotiate payment terms, collateral value and interest rates to keep your repayment plan within your budget for the next few years.

Secure You In Case Of Automatic Stay Violation

Once your attorney has notified the debt collectors about the bankruptcy filing, they must stop making collection calls. If someone is still attempting to call you for debts, this is termed an automatic stay violation. Your bankruptcy law firm can file a motion in the court to hold the creditor in contempt providing you the much-needed peace of mind.

Help Resolves Post Bankruptcy Charges

Professional bankruptcy attorneys are good at making sure everything goes smoothly during the case. But what if something needs attention after the case has ended? Although there are rare chances of that happening, the attorney will handle it for you.

How To Hire A Bankruptcy Firm?

Know that bankruptcy is a highly specialized area of law and you cannot afford to make any mistakes. As you are hunting for the best bankruptcy law firms in San Diego CA, start by contacting your state’s bar association. It would be great if you hire an attorney who is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA) because they better know things. Ask around for the best recommendations before signing any written agreement.