BANKRUPTCY LAW

The firm represents debtors in personal and business bankruptcies:

Are you a good bankruptcy candidate?

If you have both secured (real estate) and unsecured (credit cards) and you cannot afford to keep up with all of your payments, you may qualify to file Chapter 7 or Chapter 13 (reorganization) protection under the Bankruptcy Code.  If you want to keep your home in Chapter 13 (reorganization) cases if the appraised value of your home is below the combined loan values, other than the 1st mortgages (senior lien), other mortgages, such as the 2nd or 3rd (junior liens) could through additional motion and order through the bankruptcy court, lose their "security" interest in their "lien" and become unsecured liens which would get treated as all other unsecured liens under the chapter 13 repayment plan and essentially can often get wiped off. Before filing bankruptcy, whether  bankruptcy chapter 7, or 11, consult with an experienced bankruptcy attorney.  Bankruptcy lawyers will evaluate your matter, income and debts to determine the best option avilable to you.  Bankruptcy in Los Angeles is filed in various Federal Courts including Woodland Hills and Down town.

  • Chapter 7 ( Individual or Business)
  • Chapter 13 personal reorganization
  • Chapter 11 reorganization
  • Lien Stripping
  • Modifications
  • Creditor's Litigation
  • Adversary Proceedings

Bankruptcy
Bankruptcy may be an option for you if you do not expect to obtain additional funds in the near future, or, if you have very large credit card or other unsecured debts which, if you were not required to make payments on them, would allow you to have enough money to make your mortgage payments.

Bankruptcy should only be used as a last resort, however, because there are significant drawbacks to it. For one, the bankruptcy trustee and the courts take control of your property and can make decisions about your property.  Secondly, there is a large negative effect on your credit report. Finally, although bankruptcy may save your home temporarily, if you do not obtain relief from other debts or increase your income you will most likely be unable to make your mortgage payments.

  • Stay foreclosure proceedings
  • De-accelerate loan and cure defaults
  • Avoid judicial liens
  • Strip down mortgages by modifying loan terms
  • Strip off “unsecured” mortgages
  • Bring predatory lending claims
  • Deal with other debt issues

General rule
Bankruptcy generally permits modification of secured claims in chapter 13. 11 U.S.C. § 1322(b)(2)

Exception
Claims secured only by real property that is the debtor’s principal residence.