Education
LL.M. (taxation): Georgetown Law Center, 1976
JD: Loyola School of Law, 1974
BA: UCLA, 1970

Professional Memberships
Licensed Attorney: California, U.S. Tax Court, 9th Circuit of U.S. Federal Court
Member, Trust & Estates, and OC Bankruptcy Forum, Orange Co. and California Bar. ]]> http://www.thelegalfixer.com/2009/04/steven-j-feldman-esq/feed/ 0 http://www.thelegalfixer.com/2009/03/consumer-bankruptcy-chapter-13-or-7/ http://www.thelegalfixer.com/2009/03/consumer-bankruptcy-chapter-13-or-7/#comments Sat, 07 Mar 2009 22:37:35 +0000 Steven Feldman http://www.ocelderlaw.org/Wordpress/?page_id=60

Steven J. Feldman

There are two main options under the U.S. Bankruptcy Code for people seeking financial relief by filing bankruptcy.

Chapter 7 Bankruptcy

For people with little income, few assets and mounting credit card bills or medical debt, filing Chapter 7 bankruptcy may be a good option because it allows a discharge of unsecured debt—that means the bankruptcy filer is no longer responsible to pay on those debts! This is typically a good debt-relief option for people who own little property, are having a hard time making ends meet and have very little “disposable” money at the end of the month. The Chapter 7 bankruptcy process moves quickly—you could be freed of your unsecured debt (like credit card and medical debt) within just a few months! The “catch 22″ is the “mean test” dollar limitation, which means that you have to file under Chapter 13.

Chapter 13 Bankruptcy

For others, filing Chapter 13 bankruptcy may be a good way for them to get on a repayment plan so they can payoff their secured debts (like a mortgage). Typically, a Chapter 13 bankruptcy filer is given between 3 and 5 years to catch up on their late accounts and they’re allowed to keep their homes during the process. Chapter 13 bankruptcy may be a good option for people who have regular income and can pay for general living expenses but are having a tough time making payments on secured debt, like their home.

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There are two main options under the U.S. Bankruptcy Code for people seeking financial relief by filing  a consumer bankruptcy.  For a free, 30-minute analysis with an experienced bankruptcy lawyer click here.

Chapter 7 Bankruptcy

For people with little income, few assets and mounting credit card bills or medical debt, filing Chapter 7 bankruptcy may be a good option because it allows a discharge of unsecured debt—that means the bankruptcy filer is no longer responsible to pay on those debts! This is typically a good debt-relief option for people who own little property, are having a hard time making ends meet and have very little “disposable” money at the end of the month. The Chapter 7 bankruptcy process moves quickly—you could be freed of your unsecured debt (like credit card and medical debt) within just a few months.

Chapter 13 Bankruptcy

For others, filing Chapter 13 bankruptcy may be a good way for them to get on a repayment plan so they can payoff their secured debts (like a mortgage). Typically, a Chapter 13 bankruptcy filer is given between 3 and 5 years to catch up on their late accounts and they’re allowed to keep their homes during the process. Chapter 13 bankruptcy may be a good option for people who have regular income and can pay for general living expenses but are having a tough time making payments on secured debt, like their home.

Restriction:  The above choices are subject to Means Testing.

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We simply bankruptcy

A Chapter 13 bankruptcy is very beneficial to the debtor in those situations where an asset or assets need to be protected, such as when a house is in foreclosure or a car is out for repossession. The Chapter 13 bankruptcy will immediately stop the foreclosure or repossession and all the past due amounts may be put into the Chapter 13 plan and be paid over a 3 to 5 year period. Also, if you make too much income, you may not qualify for a Chapter 7. In this situation the court will require that you pay back a portion or all of your debt.

In a Chapter 13 bankruptcy, a payment plan is approved by the court. The debtor will make monthly payments to a court appointed trustee. The debtor will be required to pay back some or all of your debts over a three to a five year period. The amount of the payment is based on the amount of your income and expenses, and in some cases is as low as $100 per month regardless of the amount of debt that you have. For secured loans like home mortgage or vehicle loans, you have the option to pay these on your own, or you can put the loans into the plan and restructure the payments.

Chapter 13 can also stop repossessions or foreclosures by allowing you three to five years to catch up the back payments through the trustee. You also have the option to surrender the property to be relieved of the debt. Once the Chapter 13 bankruptcy is filed, the United States Bankruptcy Law prohibits all collection attempts by your creditors including telephone calls. Approximately thirty days after the Chapter 13 is filed with the court, you will be required to make one appearance in front of the court appointed trustee and the judge. The court and the trustee need to make sure that you know and understand what payments will be required by you and to make sure you have enough income to make those payments.

Once you have completed all the payments, the court will enter a discharge order which will relieve you of liability on all the debts in the plan. The court cost to file a Chapter 13 case is $274. This must be paid by before the case is filed. The attorney fees for a Chapter 13 case will depend on the nature and complexity of the case. The fees must be approved by the court. Typically, a portion of the fee is paid before the filing of the Chapter 13 bankruptcy, and the balance of the attorney fee is paid through the Chapter 13 plan. During your free consultation we will be able to quote you an exact fee.

Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $336,900 and secured debts are less than $1,010,650. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.

The discharge in a chapter 13 case is somewhat broader than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property (as opposed to a person), debts incurred to pay nondischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.

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Cashing out you debts

In a Chapter 7 bankruptcy the court will discharge most types of debt including credit card balances, medical bills and finance company loans. Some types of debts like recent income taxes, student loans and child support obligations are not removed. On secured debts, like a home mortgage or car loan, you have the option to keep the property and keep making the payments, or surrender the property to the lender and discharge your liability. You generally are able to keep all of your property, unless you have substantial equity in the property beyond what California law allows you to protect.

Do You Qualify? If your household income is below the California median, we typically can qualify you for a Chapter 7 bankruptcy. If your household income is more than the California median, than we must calculate your income and expenses in the “Means Test” to determine if you qualify for a Chapter 7. In your free consultation, either in person or on the telephone, we will be able to advise you if you qualify for a Chapter 7 bankruptcy.

Once the Chapter 7 petition is filed, the United States Bankruptcy Law prohibits all collection attempts by your creditors including telephone calls. Approximately thirty days after your case is filed there will be a Creditors Hearing. Typically no creditors actually show up at the Creditors Hearing. Usually it is just the bankruptcy Trustee that is present to ask you questions about your assets and income. In most cases, the hearing will last less than five minutes with a court appointed Trustee. It is the trustee’s responsibility to see if you have any large assets that could be liquidated to pay your debts, like business equipment or substantial equity in real estate. About twelve weeks after the court appearance you receive the order of discharge of your debts by mail.

The court costs to file a Chapter 7 case are $299 which must be paid by you when the case is filed. The attorney fees for Chapter 7 cases depend on the nature and complexity of your case, finances and assets. In most cases, we can have the fees paid in installments. During your free consultation we will be able to quote you an exact fee and discuss a payment plan.

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Complete Debt Resolution

After successfully helping many clients decide whether bankruptcy is right for them, we understand that one consistent fear is the potential loss of assets. You worry that declaring bankruptcy will result in the loss of your home or car.

Our bankruptcy lawyers serve clients like you in Orange and Los Angeles counties and throughout Southern California, providing vital information on asset protection and exemptions.

Protecting

Bankruptcy is a federal statute, but state exemptions govern which assets you can keep. These state exemptions allow you to protect assets from creditors. When you consult the attorneys at our law office, we apply California law to your case to help you keep the most property.

Educating

No action is taken until you understand your bankruptcy case. Our service philosophy is to educate.  Your property and paycheck are important to you. Only capable legal assistance will help you protect them.

We are happy to work with you on payments. Contact us today to schedule a free initial consultation.

Appointments

Our superior skills simplify your case.  We use the latest technology to file online. We obtain all your creditors from three credit reporting agencies.  This avoids multi-page homework assignments before filing.  In fact, we can file your bankruptcy within one hour with the proper notice, information, and fee.  Bring this to form our meeting:  bankruptcy appointment

Non-bankruptcy Settlements

Once the creditor knows that you have an attorney who is one of the most active bankruptcy filers in Southern California, they know that the client is serious and that the client is refusing to deal with their hassling, harassment and abuse anymore. Plus, the creditor fears that the client will file for bankruptcy. After a client has retained our firm, the creditors cannot contact you anymore. We answer all of the creditor calls.

Complete services  and credit report help

Our complete-service law office will arrange for two required educational courses during the case.  At the conclusion, we also offer The Post-Discharge Consumer Liability Report and bankruptcy verification review. This identifies liabilities as they are reported by creditors after discharge. In the event that information is reported incorrectly, our Post-Discharge services equip you with the tools to ensure that any incorrectly reported information is updated quickly and accurately.

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