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PALO ALTO BANKRUPTCY LAWYER

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palo alto bankruptcy lawyer

When it comes to finding the best Palo Alto bankruptcy lawyer for solving your problems, then there is no one better for you than EH Law Group.

Our team of professionals is among the best legal representation in the business.

We particularly specialize in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Read more about our services in these areas, below.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy deals with wiping out most kinds of overwhelming debt. It is the most common form of bankruptcy in the United States and can be filed by a person, partnership or business entity. Some typical features of Chapter 7 are:

  • It can wipe out most types of unsecured debts such as personal loans, credit card debt, medical bills, unsecured loans, etc. However, there are some types of loans such as alimony and child support, back taxes, student loans, and the like which are not eligible for Chapter 7.
  • To qualify for Chapter 7, you must meet certain criteria: You must pass the means test which looks at your income.       However, even if you have filed for a Chapter 7 or Chapter 13 bankruptcy claim in the past 180 days, you may be eligible to file again, depending on what happened in the prior bankruptcy.
  • Typically, in the process of clearing your debts, you are likely to keep all your assets but need to list your property as exempt or else you lose them. The laws of exemption are different from state-to-state and it is best to consult with your local legal experts what the state laws are for exempt property in said state.
  • Chapter 7 bankruptcy will significantly hurt your credit reports when you first file. However, within months of it, your credit score will start to improve.

Filing for Chapter 7 Bankruptcy

There are several steps in the process of filing for Chapter 7 bankruptcy:

  • Credit counseling: Get pre-file bankruptcy counseling from a qualified credit counseling firm within 180 days before filing.
  • Legal representation: Hire a bankruptcy lawyer to ensure effective management of the process.
  • Filing of paperwork: You need to have all the relevant documents such as those showing your assets, income, and liabilities. Your lawyer will help file the petition. The moment the case is filed, a stay order is issued to all your creditors stopping them from taking any action against you.
  • A trustee appointed: A court-appointed trustee takes over the management of the process.
  • Meeting with creditors and trustee: You will then be required to meet up with your creditors and the trustee, who will question you on your finances and bankruptcy forms. Following this, the trustee will decide on your eligibility for bankruptcy.
  • Deciding on Non-exempt property: The trustee will assess if any non-exempt property needs to be sold off to settle the debts.
  • Settling of secured debts: You might either be asked to hand over the property set as collateral to the creditor or you can pay off the pending amount and recover the property.
  • Education and discharge: You will be expected to take a financial education course from a qualified credit counseling business. After around 3 to 6 months of filing, your case reach discharge and your debts are forgiven.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy (also known as wage earner’s plan or debt reorganization) enables individuals with income to come up with a plan to pay off all or part of their debt over a period of time. Typically, under this procedure, debtors come up with a proposed a 3-year or 5-year plan to pay back some of their debts in installments. Only individuals can file for Chapter 13. Some of its basic features are:

  • The debtor must submit and follow-through with a plan to pay off said debt within the period of 3-5 years.
  • An agreed-upon monthly payment is made to an appointed, impartial trustee.
  • To be eligible for filing for Chapter 13 your debt levels need to be below a certain level: As of February 2019, you can file for Chapter 13 bankruptcy if your unsecured loan is less than $419, 275 or you have a secured loan of less than $1, 257, 850. Additionally, for eligibility, you need to also have completed credit counseling.
  • Chapter 13 bankruptcy claim protects your personal property, such as your home, from being sold. Once Chapter 13 has been filed, any home closure proceedings are ceased.
  • A Chapter 13 bankruptcy stays on your credit report for up to 7 years from the date of filing. However, while paying off your loans, you are generally prohibited from taking on any more credit as it can completely derail your payment to your creditors.

Filing For Chapter 13

The steps involved in filing for Chapter 13 are as follows:

  • Credit counseling: Get your credit counseling from a qualified credit counseling agency.
  • Legal representation: Hire a lawyer to ensure effective management of the process.
  • File paperwork: You will need to have documents showing all your creditors and what is owed to each, your property, your income, and a detail of all your monthly expenses. Your lawyer will file your petition.
  • You will then pay monthly an agreed-upon amount to an impartial trustee, which the trustee will then divide and pay to your different creditors. There will be no direct interaction between you and your creditors.
  • Once the 3 or 5 year payment plan is complete, the petition is discharged and the debts are removed.

Which Is Right For You

You might be wondering which of the two chapters is right for you. That depends completely on your situation.

If, for example, most of your problem debts are those which can be discharged under Chapter 7, the total amount of your outstanding debt is 50% more than your annual income, or there is no way you can pay your debts no matter how strict a regime you stick to for the next 3-5 years, then Chapter 7 might be more suited to you.

Chapter 13 is the better option for you if your main problem is secured debts and you can come up with a proposed plan to pay back the debt within the specified 3-5 years. There is a lot more to consider before finding which Chapter is the better fit for you and that is why hiring competent legal representation is of the essence. A good bankruptcy lawyer will take your needs and your situation into account and, matching it with his in-depth knowledge of both the chapters, come up with the most ideally suited solution for you.

Why Hire Us as Your Palo Alto Bankruptcy Lawyer?

When it comes to a Palo Alto bankruptcy lawyer, EH Law Group is a name that stands out. We are intimately aware of everything to do with Chapter 7 and Chapter 13 bankruptcy laws- particularly with the state laws applicable to both. Our experts are qualified professionals with considerable experience in the field of filing for bankruptcy. There is a long list of things that sets us apart from the rest:

  • Our lawyers have the expertise of experience and qualification combined, to give you the highest quality of service.
  • We offer a comprehensive, hassle-free service to you, making things as easy and simple for you as possible, while ensuring you get the best possible results from this difficult process.
  • We have a hoard of positive customer reviews testifying to our quality of service and dedication to client satisfaction.
  • Hiring lawyers at a time of bankruptcy is not easy. This is why we make sure to offer some of the most competitive rates in the market.
  • We know that every client has different needs and priorities in this difficult time. This is why we make sure to listen to what you need and then work on providing the most customized solution to your problems possible.

At EH Law Group we take pride in our work and are humbled by the trust our clients put in us at a trying time in their lives. This is why we do everything possible to make this experience as easy on you as possible while doing our best in minimizing your losses. So, if you are anywhere in the Palo Alto or surrounding areas and need help with bankruptcy issues, please give us a call.

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