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Filing bankruptcy in Chico is affordable with bankruptcy attorney Adam Garcia. For only $900 in attorney fees, you can eliminate medical bills, credit cards, online loans, and other unsecured debts. Filing bankruptcy can also stop foreclosure, wage garnishment, and creditor lawsuits. To learn more about your debt relief options call bankruptcy attorney Adam Garcia at (916) 500-0704 for a free consultation.
How Much Does Chapter 7 Bankruptcy Cost?
The largest expense in filing chapter 7 bankruptcy is your attorney’s fee. Chico bankruptcy attorney Adam Garcia charges a flat fee of $900 for most chapter 7 bankruptcy cases, but many other bankruptcy attorneys charge more. The only way to get a firm quote for your bankruptcy is to call a bankruptcy law firm for a free consultation.
After the attorney’s fee, the second largest expense in filing chapter 7 bankruptcy is the Court filing fee. Currently, the United States Bankruptcy Court charges a $338 filing fee for a chapter 7 bankruptcy petition. Usually, this filing fee is paid before filing the bankruptcy case, but some local rules permit the client to pay the court filing fee in 4 monthly installments. Speak to a local bankruptcy attorney to determine whether you qualify for a filing fee installment plan.
Apart from the attorney’s fee and court filing fee, nearly everyone who files for chapter 7 bankruptcy must complete an online credit counseling course. After filing, a second course called the “personal financial management course” must be completed to receive a discharge. These courses are inexpensive and cost anywhere from $10 to $25.
Here’s a breakdown of the total cost of filing chapter 7 bankruptcy with Adam Garcia:
- $900 – Attorney Fee
- $338 – Court filing fee (possibly payable over 4 months)
- $15 – Credit Counseling Course
- $15 – Personal Financial Management Course
Do You Need An Attorney To File For Bankruptcy?
No. You can file for chapter 7 or chapter 13 bankruptcy without an attorney. However, here are 3 common reasons why people choose to file bankruptcy through an attorney:
- Filing bankruptcy can be complicated. Some people can’t complete the 50+ pages of forms, perform a means test calculation, or assemble 521 documents. Also, even if you can complete the forms, you probably don’t understand the Bankruptcy Code or why that one obscure Section the Trustee cited at your meeting of creditors turned your no-asset case into an asset case. (Which leads to the next point…)
- You can lose property in bankruptcy. You can only protect certain assets up to a certain amount in bankruptcy. Unexempt property can be sold by the chapter 7 bankruptcy trustee. Worst of all, you can’t dismiss a chapter 7 bankruptcy to protect your property; once you file chapter 7 bankruptcy, you’re committed to the “liquidation” process. Of course, bankruptcy attorneys are tasked with protecting your property in chapter 7 bankruptcy and informing you of what can’t be protected before your case is filed.
- Learning everything about bankruptcy is not worth your time. It takes a lot of time to understand bankruptcy law and procedure. People hire skilled professionals because it’s not worth their time to learn an entire profession to perform one task. Sure, we could learn how to replace a car radiator, but it’s not worth our time; just hire a mechanic.
What Debts Can Bankruptcy Eliminate?
Filing bankruptcy is a personal decision, but some people choose to file for chapter 7 bankruptcy after receiving legal counsel to eliminate debt. Of course, not all debts can be eliminated, but some common consumer debts such as the following can be discharged in bankruptcy:
- Credit Card
- Online Loan
- Payday Loan
Other forms of unsecured debt are eligible for discharge. Speak with a bankruptcy attorney to find out which debts can be eliminated in bankruptcy.
Bankruptcy Can Stop Foreclosure, Repossession, Wage Garnishment, and Lawsuits
When someone files a bankruptcy petition, federal law puts a stop to most collection actions. This “automatic stay” of collection activities is designed to force creditors to participate in the bankruptcy process and preserve assets of the “bankruptcy estate.”
While the “automatic stay” is theoretically automatic upon filing the bankruptcy petition, any good bankruptcy attorney will invest the extra effort to make sure problematic creditors receive notice with proof of filing to stop an impending foreclousre, wage garnishment, etc.
Chapter 13 bankruptcy can not only stop foreclosure, but it can help the client catch up on late payments while they keep their home. In essence, chapter 13 bankruptcy clients will repay their mortgage arrears through the 3-5 year chapter 13 repayment plan. In turn, after bankruptcy, the client will have repaid their late mortgage payments and be current on their home mortgage.
Bankruptcy is one of the best methods for stopping wage garnishment and eliminating the underlying debt. After filing, your bankruptcy attorney will fax or email proof of your bankruptcy filing to the garnishing creditor and the Sheriff’s office facilitating the garnishment.
Civil collection lawsuits are a collection action that must stop when a bankruptcy petition is filed. In a no-asset chapter 7 bankruptcy, the damages sought by the creditor are listed on the debt schedules in an effort to discharge the underlying debt. However, there are limitations to the discharge of debts for willful and malicious injury to property and fraudulently incurred debt. Speak to a bankruptcy attorney to make sure the debts associated with your lawsuit are eligible for discharge.
Sometimes a client still owes money on a previously repossessed car. Fortunately, this deficiency balance is often dischargeable in chapter 7 bankruptcy.
To learn more about filing chapter 7 or chapter 13 bankruptcy in Chico, call attorney Adam Garcia at (916) 500-0704 for a free consultation and quote. Consultations are available by phone and can often be completed right away without the need to schedule an appointment.