You may not be able to afford to file some kind of bankruptcy and we get that. If you're struggling to pay your debts and living expenses, you may want to file for an affordable bankruptcy to get debt relief. If so, you may wonder how you’re supposed to afford the bankruptcy filing fee and pay a debt settlement attorney or a bankruptcy attorney to help you file bankruptcy. If this is you, you’re not alone. The major problem is that many filers can’t afford to pay bankruptcy attorney fees because even an affordable bankruptcy attorney can cost between $1,200 and $2,500, depending on the details of the case.

Once again, the cost of bankruptcy can be daunting, especially when estimates of attorney fees alone range between $1,000 and $4,000. When you add it up and all the cost factors involved, it may well make someone hesitant to file. However, there are ways to file a low-cost bankruptcy.

The best option: File Chapter 7. Many cases in Chapter 7 are no-asset cases.

That phrasing does not mean you do not have assets, rather it means that because you file for exemptions, you are permitted to keep what you own. As a result, you are not required to sell your home or other necessities (like your car, which you may need to get to work) to settle your debts.

The main reasoning behind this approach is to allow a fresh start to those filing, without having to start their lives over completely. Using this method, that is with exemptions, 95% of filers in the United States can protect all of their assets.

To protect those assets, it requires filing Schedule C: The Property You Claim as Exempt to the bankruptcy court. The form is vital. If you don't claim any exemptions, or if you claim the wrong one, the property may not be protected. That may eventually mean selling the house to pay the debts.

Some of the properties that can be declared exempt include:

• ✔ Vehicles
• ✔ Personal property like household goods, furniture, and musical instruments
• ✔ Health aids
• ✔ Real estate used as the home
• ✔ Social Security benefits
• ✔ Life insurance
• ✔ Unemployment benefits and compensation

Taking advantage of a simple Chapter 7 filing, it is possible to proceed without an attorney. Although it’s best to tread carefully and at least consider consulting an attorney to see how complex your case could be. If it’s truly simple, an individual can file on their own and get a successful discharge, which saves a good bit of money.

What about a Chapter 13 filing?
That is more complex, and in almost all cases requires an attorney, which makes it more expensive than Chapter 7.

When your loans and credit card payments seem overwhelming, a debt settlement attorney may be able to help lower the amount you owe. First and foremost before deciding to work with an attorney, it is best to research what they can do for you.

A debt settlement attorney usually has a good knowledge of bankruptcy law. They can negotiate with your lenders if you have a large amount of unsecured debt to lower the amount you owe. Unsecured debt is debt that doesn't require collateral. They include debts such as credit cards, student loans, or medical bills.

Do you have a large amount of debt and not enough resources to pay it? It can be helpful to first get the advice of a non-profit consumer credit counseling service. They can help you design a budget and provide financial advice. If that doesn’t help to pay off debt, then you may want to consult a debt settlement attorney who can consolidate your debt, lower it, or put you on a payment plan. Your lawyer should know the best strategy to minimize your legal risk, as well as risks to other things like your credit score.

Debt settlement attorneys are very similar to bankruptcy attorneys. However, you may want the help of a debt settlement lawyer first since you want to avoid going into bankruptcy. A debt settlement attorney will most likely provide better options than an agency that advertises lowering debt. Sometimes, such services often end up costing you more than you originally owed in the long run.

In most cases, debt settlement lawyers charge based on contingency. Contingency simply entails that you will not have to pay anything upfront however your lawyer will take a percentage if you win your case. The rate may be based on how much you owe, or how much they save you. Pricing will also vary depending on where you live and how much you owe. It is often better to establish a rate upfront with your lawyer to minimize any surprises on your bill.

A debt settlement attorney should be able to lower the amount of unsecured debt that you have to pay back. Creditors take a big risk on unsecured loans, and as such are willing to earn back part of the money that they loaned out than none of it. This is exactly what happens if you file for bankruptcy. There is no guarantee that a debt settlement attorney will be able to lower your debt. However, hiring an attorney gives you a much better chance than if you handle your creditors on your own.

Bankruptcy is a legal procedure initiated by an individual or a business that cannot pay its debts and seeks to have the debts discharged or reorganized by the courts. The set of laws governing the above is called Bankruptcy Law. The three most common types of bankruptcy proceedings are Chapter 7 bankruptcy which deals with individual petitions, Chapter 11 bankruptcy which deals with business reorganization and rehabilitation petitions, and Chapter 13 bankruptcy which deals with wage earner's plans.

Most times, bankruptcy cases almost exclusively fall under federal law, though states may pass laws governing issues that federal law doesn’t address. There are special bankruptcy courts nationwide that handle only debtor-creditor cases. As a result of this, any bankruptcy-related claim must be filed with the U.S. Bankruptcy Court.

Below are some terms that are used mostly in bankruptcy law.

Bankruptcy Petition – This is the document filed with the U.S. Bankruptcy Court that initiates a bankruptcy proceeding. This usually contains the debtor’s assets, debts, and other liabilities Chapter 7 (Individual Bankruptcy) – This is a petition filed under Ch. 7 of the U.S. Bankruptcy Code for an individual debtor to liquidate his or her assets and settle or discharge debts Chapter 11 (Business Reorganization) – This is a petition filed under Ch. 11 of the U.S. Bankruptcy Code for a business to reorganize its liabilities and assets, as well as settle or discharge its debts.

Chapter 13 (Wage Earner’s Plan) – This is a petition filed under Ch. 13 of the U.S. Bankruptcy Code where an insolvent debtor may ask the court to grant additional time for the debtor to pay off his or her debts, so long as the debtor is earning a steady income.

• ✔ Insolvent – This has to do with being unable to pay one’s debts as they come due
• ✔ Discharge – This means to release a debtor from his or her liability to pay a debt

Even though most lawyers are free to request permission to practice in the U.S. Bankruptcy Court, effectively representing bankruptcy clients requires thorough knowledge of the U.S. Bankruptcy Code. This means that attorneys without the proper experience may not know all of the options available to a client-facing bankruptcy. Therefore, as a result, they may not be able to broker the most advantageous bankruptcy plans.

Bankruptcy proceedings can have long-term benefits and consequences for an individual’s financial and family situations. This is even the main reason why finding an experienced lawyer is essential. A lawyer who has helped many clients through bankruptcy can better prepare you and protect your assets and minimize the negative effects of bankruptcy.

If you are facing bankruptcy, contact a bankruptcy lawyer immediately to preserve your legal rights and explore your legal options today. We have these practitioners in many locations. Our Canoga Park bankruptcy group for instance.

This is the most popularly filed bankruptcy in the United States.Chapter 7 deals with the liquidation of assets. The reason a lot of people file for a Chapter 7 bankruptcy is that it is the fastest kind of bankruptcy and it frees them from their debts once the assets are sold by bankruptcy trustees.

People can protect some of their assets from liquidation by filing for exemption. The properties covered by exemption vary from one state to another. In California, exemptions cover your house of residence, car, personal property, 75% of your wages paid in the last 30 days before you filed for bankruptcy, retirement plans and pensions, public benefits, insurance, and so on (You'll know more when you book our consulting services).

Some properties are not covered by exemptions, especially those that have been used as collateral. These collaterals can also not be liquidated by trustees. The rest of the non-exempt assets can be sold off and once that happens, you'll be released from your unsecured debts except income taxes that are less than 3 years old, property taxes, student loans, child support, divorce settlements, and non-released debts from a previous bankruptcy.

We at Los Angeles Bankruptcy group are prepared to help you navigate this bankruptcy. Our consultation services are second to none as we give you all the information you need to know about Chapter 7 including when to file it, the requirements, whether or not you qualify for it, and the alternative in case you don't qualify and so on. We would also guide you on how to fill out your bankruptcy forms.

Chapter 13 bankruptcy is less filed partly because it is more expensive. Sometimes, a debt resolution program is preferred ahead of this type. Chapter 13 bankruptcy is a legitimate and effective way to file bankruptcy. However, in almost all cases it will be significantly more expensive than Chapter 7. This is simply because Chapter 13’s complexities require hiring a lawyer. A typical Chapter 13 attorney today can cost $3,000 and perhaps up to $4,000 or even $5,000 (or more) in some extreme cases.

What Chapter 13 means is that you and the court agree on a payment plan to pay down debts. That being the case, creditors can object to the plan, but only before the court approves it. On the other hand, once the court approves the approach, you and the creditors are bound by the terms. Typically, the monthly payment is based on what you, the filer, can afford.

Because creditors receive some money in Chapter 13, filers automatically can keep most, if not all, of their possessions. Thereby making this a good approach as well.

Going forward, Chapter 13 is best if you are behind on the mortgage. As well as if you have debts that cannot be discharged. Additionally, if you have a loan with a high-interest rate or if you have more than one house. The cost of the attorney is a significant expense to be considered.

At the same time, it’s necessary to have an attorney because those who file Chapter 13 without a lawyer typically fail. As a result of the above, navigating the system is that complex.

The amount bankruptcy lawyers charge depends on many factors. Factors include their level of experience and where they work. Just like other expenses around, attorneys' fees tend to be higher in large urban areas on the coasts. There is one more very important factor affecting this cost in Chapter 13 bankruptcy cases: The court must approve the amount you pay your attorney. In line with this, many courts have guidelines for fees that they'll automatically consider reasonable (known as "presumptive" or "no-look" fees). They may also list the basic services that should be covered. As well as add-on amounts for business cases and further services that might be needed (such as filing plan modifications or motions). As stated earlier, these presumptive fees vary from state to state and among districts within larger states. Examples of the range of presumptive fees for basic services in a few populous states:

• ✔ California: $3,300 to $5,000
• ✔ Texas: $3,000 to $3,825
• ✔ Florida: $3,500 to $4,500
• ✔ Michigan: $2,600 to $3,650
• ✔ Virginia: $4,000 to $5,100

The one constant thing in the U.S. economy over the last six years is debt. Debt figures keep going up and up and even further up. This has increased the need for an effective debt resolution program.

To start with, household debt rose to $155 billion in the first quarter of 2020. It has been going up for at least 23 consecutive quarters. The total household debt in the U.S. stands at an alarming record-high of $14.3 trillion.

Up next are mortgage balances. It is up by $156 billion mainly because the coronavirus and subsequent quarantine measures kept people at home. During this time, Credit card balances declined by $39 billion for the quarter.

Notwithstanding, American consumers owe $1.03 trillion on credit card accounts. Add that to the $1.54 trillion owed in student loans, another $1.35 trillion in auto loans, and a rapidly expanding appetite for personal loans – 20 million consumers owe an average of more than $16,000. Trust me, debt is a hot topic in the U.S.

On the bright side, the good news is that people are making an effort to pay off some debt. Two of the most effective methods for paying off debt are debt management and debt settlement. A debt management program is provided to lower the interest rate and monthly payment on credit card debt to an affordable level.

Another good part is that the debt management program does not use credit scores as a qualifying factor, nor does it require the consumer to take out another loan. It however works with card companies to provide reduced interest rates to nonprofit credit counseling agencies to assist them in developing an affordable budget for the consumer. The consumer makes a fixed monthly payment and eliminates the credit card debt in a short time. Mostly between 3-5 years.

Debt management programs are designed to help with credit card debt, but some allow personal loans or medical bills to be included. Debt management programs differ from location to location. That means that the Burbank bankruptcy program may be different from bankruptcy programs in other locations.

Debt settlement is an attempt to convince a credit card company to accept only a part of what you owe and forgive the rest of the debt.

How this works is that instead of paying your credit card company, you make monthly payments to a debt settlement company. When this debt settlement company feels there is enough money in your account, it makes a lump-sum offer to the card company. If it is accepted, it will settle the debt once and for all.

The popular picture is that you could get as much as 50% of your debt forgiven. You must agree with me that this is certainly tempting for any consumer. As expected, there are pros and cons to debt settlement with some severe repercussions to your credit status. Most times, the net result is most likely a 25% reduction or less.

Los Angeles often referred to by its initials L.A. is the largest city in California. With a 2020 population of 3,898,747. It is the second-largest city in the United States, following New York City. Los Angeles is known for its Mediterranean climate, ethnic and cultural diversity, Hollywood film industry and sprawling metropolitan area.

The City of Los Angeles lies in a basin in Southern California, adjacent to the Pacific Ocean, and extends through the Santa Monica Mountains and into the San Fernando Valley, covering a total of about 469 square miles (1,210 km2). It is the seat of Los Angeles County, which is the most populous county in the United States with just over 10 million residents in 2020. Home to the Chumash and Tongva indigenous peoples, the area that became Los Angeles was claimed by Juan Rodríguez Cabrillo for Spain in 1542. The city was founded on September 4, 1781, under Spanish governor Felipe de Neve, on the village of Yaanga. It became a part of Mexico in 1821 following the Mexican War of Independence. In 1848, at the end of the Mexican–American War, Los Angeles and the rest of California were purchased as part of the Treaty of Guadalupe Hidalgo, and thus became part of the United States. Los Angeles was incorporated as a municipality on April 4, 1850, five months before California achieved statehood. The discovery of oil in the 1890s brought rapid growth to the city. The city was further expanded with the completion of the Los Angeles Aqueduct in 1913, which delivers water from Eastern California.

Los Angeles has a diverse and robust economy, and hosts businesses in a broad range of professional and cultural fields. It also has the busiest container port in the Americas. In 2018, the Los Angeles metropolitan area had a gross metropolitan product of over $1.0 trillion, making it the city with the third-largest GDP in the world, after Tokyo and New York City. Los Angeles hosted the 1932 and 1984 Summer Olympics and will host the 2028 Summer Olympics. More recently, statewide droughts in California have further strained the city's water security.