There is little doubt that most of us have some debt. However, if your debt has gotten out of control, and you are facing eviction, foreclosure, or wage garnishment, you need to take immediate action. These types of consequences require you to seek the assistance of an experienced bankruptcy attorney who serves clients throughout California.

Chapter 7 or Chapter 13

To determine which chapter of the bankruptcy code will be most beneficial for your needs, your attorney will help you use what is called a means test. This “test” is required for everyone filing bankruptcy. Federal statutes have income and asset limitations for those who plan to use Chapter 7. In effect, this will give you a fresh start on nearly all debts, eliminating them completely.

Chapter 13 allows debtors to repay their debt over a specific time, usually up to five years. Your bankruptcy attorney can help you create a repayment plan that will be accepted by the courts; in general, all payments are made to the trustee of the plan.

While the courts do allow debtors to file a bankruptcy petition without the assistance of an attorney, this is generally not a good idea. Mistakes can result in fines, and your petition could be denied.

We understand when you are facing a financial crisis you may not know where to turn. That is why we are here to serve clients all over California who are burdened with debt they cannot pay and are facing eviction, foreclosure or wage garnishment. Contact Forberg Law at their Los Angeles office and let us help you get out from under crushing debt.